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2017 (2) TMI 6

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..... f the petitioner that the sales tax liability can be realized from the opposite party no.4, is not worthy to be accepted - petition dismissed - decided against the petitioner. - O.J.C. No.4638 of 2002 - - - Dated:- 12-1-2017 - S. Panda And S. N. Prasad, JJ. For Petitioner : M/s. B. N. Mohanty, S.N.Sharma B. K. Biswal For Opp. Parties : Standing Counsel, Commercial Tax ORDER S. N. Prasad , J. This writ application is to quash the notice dated 5.4.2002 under Annexure-1. 2. The brief fact of the case of the petitioner -Corporation is that loan had been advanced in favour of opposite party no.4 for establishing a rice mill, but the loanee could not be able to repay the loan dues as a result of which the outstanding .....

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..... s account and attach the Bank account of the petitioner. According to the petitioner, the liability of arrear tax can be fastened on the dealer and on transfer of the ownership of the units of the dealer, the transferee becomes liable for arrear tax. The provisions contemplated under Section 19 of the Orissa Sales Tax Act clearly provide that the transferor of ownership of the business and the transferee are liable to pay the arrear sales tax. The provision under Section 19(b) indicates that where the business in respect of which tax is payable is carried on by or in charge of any trustee, tax shall be recoverable from the trust. On this background, this writ application has been filed. 3. While on the other hand, learned counsel represe .....

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..... xtractions (Pvt.) Ltd., at the time of taking over the industrial concern under Section 29 of the Act, there was liability of sales tax upon M/s. Indo-East Extraction Pvt. Ltd. The Corporation sold the aforesaid unit in exercise of power conferred under Section 29 of the Act. The Commercial Tax Authorities had issued notice to the Corporation calling upon it to discharge the liability of the defaulter towards sales tax. The Corporation not having exceeded to its request and not having responded to the notice, the Commercial Tax Officer, Bhadrak Circle issued a notice calling upon the Corporation to credit the Sales Tax Officer the dues of ₹ 17,47,880/- being the demand for sales tax raised against the defaulter for the period from 198 .....

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..... was first in point of time and accordingly, this Court has refused to interfere with the decision of the Sales Tax Officer by which demand of ₹ 17,47,880/- was directed to be paid by the Orissa State Financial Corporation in the Government treasury. 6. The fact of the case in hand is similar to the fact of the case in O.J.C No. 7796 of 1993 since in this case also the loan was advanced in favour of opposite party no.4 for establishing a rice mill after availing loan from the petitioner-Corporation, could not able to repay the loan dues, as a result of which the outstanding dues of the petitioner-Corporation has become ₹ 47,15,611.09 and when in spite of repeated notice issued from the office of the petitioner-Corporation, the .....

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