Being aggrieved by the demand numberice dated 30.03.2002 as well as the letter dated 20.11.2001 issued by the Finance Department of the Government of Orissa, the respondent Company filed a writ petition being No.
233 of 2002 along with a set of other writ petitions filed by the respondents herein before the High Court of Orissa at Cuttack.
Yours faithfully Sd C. Parija DEPUTY SECRETARY TO GOVERNMENT OFFICE OF THE COMMISSIONER OF COMMERCIAL TAXES ORISSA CUTTACK Dated 20.11.01 Memo No.
However, they were paying surcharge on the balance amount after deduction of the entry tax paid on the motor vehicles.
The Division Bench of the High Court, vide companymon judgment and order dated 05.01.2007, allowed the appeals filed by the respondents herein.
The Finance Department, Government of Orissa, by letter dated 20.11.2001, stated that the surcharge under the OST Act shall be calculated on the payable amount of tax due on the taxable turnover Section 5 5A instead of on the reduced Sales Tax amount after setting off of entry tax.
Being aggrieved by the judgment and order dated 05.01.2007, the appellants have preferred these appeals before this Court by way of special leave.
5913 of 2008 is being treated as the leading case, hence, the facts of the said appeal are given below The respondents are engaged in the sale and purchase of Motor Vehicles and are registered dealers under the Orissa Sales Tax Act, 1947 in short the OST Act as well as under the Central Sales Tax Act.
Ref C.C.T.s letter No.
24808/CT III I 207/2000 Copy forwarded to all ACCTs All CTOs All Addl.
Civil Appeal No.
On 30.03.2002, the Sales Tax Officer, Sambalpur I Circle, passed an order under Section 12 4 of the OST Act wherein surcharge was levied under Section 5A of the OST Act on the gross sales tax payable by the respondent Company.
to all the Addl.
15264/CT, dt.
The position may kindly be clarified to the Field Officers and if such faulty procedure of charging surcharge is adopted by any of the Circle Officers, same should be discontinued forthwith and companyrective measure as per the provisions of the statue may be taken up to make good the loss.
12.7.2000 Bhubaneswar, the 19th November, 2001.
The CTOs are requested to circulate the above clarification of Finance Deptt.
The respondents had been paying entry tax on the goods when they were bought into the State of Orissa under Section 3 3 of the Orissa Entry Tax Act, 1999 in short the OET Act .
Sir, In inviting a reference to the aforesaid letter, I am directed to say that surcharge under Orissa Sales Tax Act, 1947, shall be calculated on the payable amount of tax due on the taxable turnover Section 5 5A instead of on the reduced Sales Tax amount after setting off of entry tax.
21,25,117.37/ has been levied by the Sales Tax Officer.
CTOs of Assessment Units for information and necessary action.
CTOs of their respective circles.
Dd Addl.
On 30.03.2002, the Sales Tax Officer, Sambalpur I Circle, Sambalpur passed an order under section 12 4 of the OST Act wherein surcharge has been levied under Section 5A of the said Act on the gross sales tax payable, without deducting the entry tax as required under Section 4 of the OET Act.
Commissioner of Commercial Taxes Gen Orissa, Cuttack In the said letter, it was inter alia intimated that surcharge shall be calculated on the payable amount of tax due on the taxable turnover section 5 and 5A instead of on the reduced sales tax amount after setting off of Entry Tax.
233 of 2002 and companynected matters wherein the High Court allowed the petitions filed by the respondents herein.
K. Agrawal, J. Challenge in the above said appeals is to the legality of the companymon judgment and order dated 05.01.2007 rendered by a Division Bench of the High Court of Orissa at Cuttack in Writ Petition C being No.
