Association Cement vs. State

Facts

The petitioner, M/s. Associates Cement Companies Ltd., Bargarh, challenged an assessment order. The Sales Tax Officer (STO), Balasore Circle, passed an assessment order on March 1, 1999, for the period 1995-96, assessing a turnover of Rs. 35,51,382.00 relating to the Balasore Circle. The petitioner contended that this turnover had already been subjected to tax at the Sambalpur-II Circle, Bargarh, through an assessment order dated December 26, 1996. The Department, in its counter affidavit, admitted that the turnover in question was indeed assessed by the STO, Sambalpur-II Circle, Bargarh, for the same period.

Held

The Court held that the turnover of sale of Cement relating to Balasore Circle of Rs.35,51,382.00, which had already been subjected to tax at Sambalpur-II Circle, Bargarh, could not be again assessed to tax by the Sales Tax Officer, Balasore Circle, Balasore. The reasoning was based on the admission by the Department in its counter affidavit that the turnover had indeed been assessed by the Sambalpur-II Circle for the period 1995-96. The Court found that a second assessment for the same turnover and period was impermissible. Consequently, the impugned assessment order dated March 1, 1999, passed by the STO, Balasore Circle, the corresponding order dated March 24, 2000, passed by the ACST, Balasore Range, and the order dated September 13, 2008, passed by the Orissa Sales Tax Tribunal were set aside. The petitioner was granted liberty to apply for a refund in accordance with law. The question framed was answered in the negative, in favour of the assessee and against the Department.

Key Issues

1. Whether the turnover of sale of Cement relating to Balasore Circle of Rs.35,51,382.00, having already been subjected to tax at Sambalpur-II Circle, Bargarh, can again be assessed to tax by the Sales Tax Officer, Balasore Circle, Balasore? (Question of law) Petitioner's contention: The petitioner argued that the turnover in question had already been taxed by the Sambalpur-II Circle and therefore, could not be subject to a second assessment by the Balasore Circle. They relied on the principle that a single transaction cannot be taxed twice by different authorities for the same period. Revenue's contention: The Department, through its counter affidavit, admitted that the turnover had already been assessed by the Sambalpur-II Circle, Bargarh. No further arguments or reliance on specific provisions, circulars, or precedents were recorded for the revenue.