S. B. Sinha, J. - (1.) Leave granted.
(2.) Respondent herein, a company registered under the Indian Companies Act, known as M/s. Crown Re-rolling (P) Ltd., is the owner of a Re-rolling mill. It is a re-rolling mill manufacturing M.S. rounds and flats, out of iron and steel scrap materials. Indisputably, the State of Orissa made an industrial policy wherefor a resolution was adopted on 13.5.1986, pursuant whereto and in furtherance whereof, exemption was granted from payment of sales tax on raw materials sold to or purchased by a registered dealer and certified by the General Manager, District Industrial Corporation to be a small scale industry set up on or after 1.4.1986 and commencing commercial production thereafter. It is furthermore not in dispute that by reason of a notification dated 22.12.1989, the State Government in exercise of its powers conferred upon it under Section 8 of the Orissa Sales Tax Act, 1947, notified Iron and steel to be taxable at the first point of sale, in a series of sale by successive dealers, when such sale is effected by a dealer liable to pay tax under the Act. It is also not in dispute that prior to issuance of the said notification the taxable event was the last purchase. It has not been denied or disputed before us that the exemption notification dated 13.5.1986 is applicable in the case of the assessee. It is also not in dispute that the said exemption relates to transaction of purchase or sale of raw material which go into the composition of the finished product manufactured by the assessee in the State.
(3.) Respondent had been making purchases from the Rourkela Steel Plant of the Steel Authority of India Ltd. Admittedly, the benefit of the exemption notification in respect of such purchases have been granted to the respondent-assessee. Admittedly, Respondent had made purchases also from the registered dealers of iron scrap. However, the problem arose in obtaining the said exemption as on and from 1.1.1990 steel was made taxable at the first sale point by reason of the said notification dated 22.12.1989 issued under Section 8 of the Act. The mechanism for availing of exemption was by way of statutory declaration by the buyer/manufacturer to the taxable seller, thereby purchasing the raw material free of tax.;