STATE OF ORISSA Vs. SHIV PRASAD ASHOK KUMAR

JUDGEMENT

(1.) ON an application by the Revenue under section 24(1) of the Orissa Sales Tax Act, 1947, the following question of law has been referred to this Court for opinion along with the statement of case :

(2.) THE opponent, a dealer in outstill liquor and registered as such in Koraput I Circle, Jeypore, was assessed to tax on the turnover of sale of outstill liquor for the year 1976-77 under rule 90-B of the Orissa Sales Tax Rules which came into force with effect from 1st May, 1976. In addition thereto he was assessed to tax on the turnover of purchase of mohua flower whereas sale of outstill liquor was brought within the tax net with effect from 1st May, 1976. Purchase of mohua flower was taxable during the year 1976-77. The first appellate authority held that till 30th April, 1976, the dealer was paying tax on the turnover of sale of outstill liquor which was inclusive of the turnover of purchase of mohua flower out of which outstill liquor was prepared. Outstill liquor being tax-free till 30th April, 1976 and the taxable turnover being the gross turnover minus the value of the tax-free goods, that was the turnover of purchase of mohua flower, the taxable turnover included the purchase turnover of outstill liquor. Hence, the Assistant Commissioner concluded that the purchase turnover of mohua flower was no longer sought to be taxed separately from 1st May, 1976. On appeal by the Revenue, the Tribunal upheld and followed the reasonings of the first appellate authority and on motion by the Revenue, reference has been made to this Court.

(3.) THE reference, therefore, is answered in the negative. There would be no order as to costs.