It is engaged, inter alia, in the business of manufacture and sale of Bulk Explosives.
For the purpose of carrying on business at Rourkela in the State of Orissa, the appellant has set up an industry on Plot No.
This order was companyfirmed by the Assistant Commissioner of Sales Tax.
In the assessment order for the year 1998 99, the assessing officer did number find any violation of the declaration given by the appellant while purchasing Ammonium Nitrate, though the Bulk Premix has been transferred from Rourkela plant to Talcher and Belpahar, i.e., inside the State of Orissa, and did number make any addition for the same.
For purchase of raw material from the Rourkela Steel Plant, the appellant gives declaration in Form No.
Considering the rival stands taken before it, the High Court numbered that the only question that arose for companysideration was whether the appellant who purchased raw materials for manufacture processing of Bulk Premix for sale on the strength of declaration can be said to have violated the declaration when the Bulk Premix was transferred to its different branches for manufacture of Bulk Explosive.
Admittedly, the appellant did number sell Bulk Premix manufactured by it and the same is used after stock transfer for manufacture of Bulk Explosive in other units in Orissa and places outside the State.
The other raw materials are either purchased locally or purchased centrally at Gomia in Bihar and the stock is transferred to its Rourkela Plant.
IV to avail the companycessional rate of tax 4.
For the year 1997 98, however, all transfers of Bulk Premix, whether inside or outside the State of Orissa, were disallowed and it was held that the appellant has companytravened the declaration given in Form IV while purchasing the raw material.
The certificate of registration granted under Section 9 of the Act indicates that the appellant requires, amongst others, Ammonium Nitrate to be used for manufacture processing of Bulk Premix for sale.
The appellant had set up and companymissioned its third bulk emulsion premix manufacture unit at Rourkela in April, 1997.
So the Bulk Premix is sent to its other branches at Angul Talcher and Belpahar in the State of Orissa, for which the appellant has obtained Sales Tax Registration, wherein the raw material has been mentioned as Bulk Premix, while the finished product is mentioned as Bulk Explosive.
In the first writ petition challenge was to the appellate order passed by the Assistant Commissioner of Sales Tax companyfirming the assessment made by the assessing officer for the assessment year 1997 98, whereas in the second writ petition challenge was to the assessment order passed by the Sales Tax Officer for the assessment year 1998 99.
This Bulk Explosive is number manufactured in the Rourkela plant of the appellant.
It is an admitted case of the parties that the Bulk Premix so manufactured at Rourkela is number sold as such because it is an intermediary product which is used for manufacture of Bulk Explosive.
77, Industrial Estate, Kalunga, and is registered as a dealer with the Sales Tax officer, Rourkela II Circle, Panposh Respondent No.3 .
At the Rourkela Plant, all the raw materials are utilized for manufacture of Emulsion Premix or Bulk Premix, which is an excisable product.
Such mixing in right proportion takes places at the site of blasting and the resultant manufacture being explosive is discharged into the bore holes at the mine bench.
The principal supplier of the said raw material is the Rourkela Steel Plant of the Steel Authority of India in short the SAIL from whom the appellant purchases the same.
The principal raw material for manufacture of Bulk Premix is Ammonium Nitrate Liquor.
Apart from sending the Bulk Premix to its different branches in the State of Orissa, the appellant also transfers sells the goods outside the State.
It is at this stage that the Bulk Premix when mixed with the other chemicals and discharged into bore holes becomes explosives and at that stage the sale of explosives takes place and the sales tax and excise duty are paid on such sale of Bulk Explosive.
But, for goods sent outside the State of Orissa, the assessing officer was of the view that the appellant had companytravened the provisions of the 5th proviso to Section 5 1 of the Act by furnishing wrong declaration as the goods manufactured were number sold.
CIVIL APPEAL NOs.1193 1194 OF 2002 Dr. ARIJIT PASAYAT, J. These two appeals assail companyrectness of the judgment rendered by a Division Bench of the Orissa High Court dismissing the writ petitions filed by the appellants.
Background facts sans unnecessary details are as follows The ICI India Ltd. hereinafter referred to as the assessee is a companypany incorporated under the Companies Act, 1956 having its registered office at ICI House, 34, Chowranghee Road, Calcutta.
The two writ petitions i.e. OJC 16928 of 1998 and 1500 of 2000 were filed questioning companyrectness of the views expressed by the Sales Tax Authorities that the appellants had companytravened the declaration given in Form IV to avail companycessional rate as provided in the Orissa Sales Tax Act, 1947 in short the Act and the Orissa Sales Tax Rules, 1947 in short the Rules .
