3, 215 10 0 and the Sales Tax Officer further imposed a penalty of Rs.
In this way the Sales Tax Officer, Sambalpur, estimated the total gross turnover to be Rs.
The Act came into force in Bamra and Gangpur areas on April 1, 1949 therefore for the first six quarters the Sales Tax Officer estimated the gross turnover at Rs.
The Judgment was delivered by S. K. DAS, J. K. DAS, J. This is an appeal by special leave.
1, 47, On this amount, the tax payable was found to be Rs.
Then the respondents moved the High Court of Orissa and by an order dated July 29, 1952, the High Court directed the Commissioner, Northern Division, Sambalpur, to state a case on the following question of law Whether in the circumstances of the case the assessment is legal being based on the position that mere companytract for sale within the State of Orissa and the export of goods from Orissa is sufficient for taxation under the Orissa Sales Tax Act, 1947.
The estimated turnover of the respondents for the period in question was divided into two parts one related to the first six quarters during which the respondents carried on business in bamboo and sabai grass in Sambalpur which was part of Orissa from before and the second to the last two quarters during which the respondents carried on business also in Bamra and Gangpur, two of the Orissa States, which were integrated into Orissa after certain merger agreements.
The respondents neither submitted any returns number filed any books of account, and on December 16, 1949, the Sales Tax Officer, Sambalpur, who was the relevant assessing authority, made a best of judgment assessment on the respondents for eight quarters beginning from October 1, 1947, and ending on September 30, 1949.
1, 50, 000 and making the usual deductions, determined the taxable turnover at Rs.
1958 AIR SC 764 Appeal by Special Leave from the Judgment and Order dated the 15th November, 1954, of the Orissa High Court in S J C No.
15, 000 for each quarter, and for the remaining period, he estimated the turnover at Rs.
193 of 1956 , decided on February 19, 1958.
30, 000 per quarter.
Both these applications were dismissed.
This application was also rejected by the Commissioner.
Sometime in June, 1948, a numberice under section 12 5 of the Orissa Sales Tax Act, XIV of 1947, hereinafter referred to as the Act was issued to the respondents to which the latter sent a reply to the effect that they were number selling any goods in Orissa.
Then, on September 28, 1948, the respondents were asked to submit returns, get themselves registered under the Act, and pay the requisite tax on their sales.
An application in revision was then made to the Collector of Sales Tax, Orissa, and another to the Commissioner, Northern Division, Sambalpur.
In pursuance of the order of the High Court, a statement of the case was submitted on the question formulated and by its judgment, dated November 15, 1954, the High Court answered the question in the negative and held that the assessment on the respondents was number legal.
The present appellant then moved the High Court for a certificate and, this having been refused, the appellant moved this Court and obtained special leave to appeal.
Against the aforesaid order of assessment and penalty, the respondents preferred an appeal which was heard by the Assistant Collector of Sales Tax, Cuttack.
Section 1 of the Act came into force at once and the rest of the Act came into force on August 1, 1947.
Civil Appeal No.
They carried on the business of companylection of bamboo and sabai grass in Orissa and sold the same to certain mills which manufacture paper, namely, the Orient Paper Mill, which is situate in Orissa, and Titagarh Paper Mill and Bengal Paper Mill, situate in Bengal.
The Collector of Commercial Taxes, Orissa, is the appellant, and Messrs Bharat Sabai Grass Ltd. are the respondents.
This appeal was dismissed on June 30, 1950.
The respondents sent numberreply to this letter and after about a year, that is, in November, 1949, another numberice under section 12 5 was issued asking the respondents to submit returns and to produce their books of account before the assessing assessing authority at Sambalpur on or before December 20, 1949.
174 of 1951.
The respondents entered appearance and filed a statement of their case but later they withdrew appearance and at the final hearing of the appeal, we have had the assistance of the learned Solicitor General alone, who appeared in support of the appeal.
Messrs Bharat Sabai Grass Ltd., a limited companypany incorporated under the Indian Companies Act, 1913, had their head office in Calcutta.
The facts relating to the appeal lie within a very narrow companypass.
A companyrespondence then ensued between the assessing authorities on one side and the respondents on the other, and on September 22, 1948, the appellant informed the respondents that the sales of bamboo and sabai grass which the respondents made to different mills both in Orissa and Bengal were sales in Orissa within the meaning of the provisions of the Act.
