State of Orissa Vs. Cuttack Monihary Store - Court Judgment
|Court||Orissa High Court|
|Case Number||Special Jurisdiction Case No. 157 of 1977|
|Judge||R.N. Misra, C.J. and ;B.K. Behera, J.|
|Appellant||State of Orissa|
|Respondent||Cuttack Monihary Store|
|Appellant Advocate||Standing Counsel (S.T.)|
|Respondent Advocate||B.K. Mohanty, ;P.K. Misra, ;D.K. Seth and ;R.L. Bose, Advs.|
|Cases Referred||State of Orissa v. Voona Suru Patra|
.....loan, that does not at all bring out an anomalous situation so as to defeat the right of the orissa state financial corporation. agreement between the orissa state financial corporation and the loanee is a pure and simple contract governed by the provisions of the contract act, 1872 read with the provisions in the act, 1951 and its rules. on the other hand, a confiscation proceeding under the act, 1972 is punitive in nature for commission of a forest offence. thus, by virtue of the provision in section 56 read with section 64 (2) of the act, 1972, the action taken for confiscation of the vehicle cannot be extended to grant protection of the loan advanced by orissa state financial corporation. by doing that it amounts to grant premium to the pick-pockets in as much as, by making..........the member, sales tax tribunal, is correct in holding that sewing thread is exigible to tax at the rate prescribed in serial no. 3 of the schedule of taxable goods otherwise stated, the point in dispute is whether cotton sewing thread is cotton yarn exigible to tax at 2 per cent or is an independent goods for which no special rate is prescribed and as such would be taxable at 5 per cent as envisaged by section 5 of the orissa sales tax act, 1947.2. for the reasons indicated by a division bench of this court in the case of srinivasa distributing agencies v. state of orissa  48 stc 453 and the further clarification made by us today in our order in state of orissa v. voona suru patra & sons (s. j. c. no. 119 of 1977)  51 stc 410, which we adopt, we hold that sewing thread is.....
R.N. Misra, C.J.
1. The question that has been referred for opinion of this Court by the Sales Tax Tribunal, Orissa, is :
Whether, on the facts and in the circumstances of the case, the Member, Sales Tax Tribunal, is correct in holding that sewing thread is exigible to tax at the rate prescribed in serial No. 3 of the schedule of taxable goods
Otherwise stated, the point in dispute is whether cotton sewing thread is cotton yarn exigible to tax at 2 per cent or is an independent goods for which no special rate is prescribed and as such would be taxable at 5 per cent as envisaged by Section 5 of the Orissa Sales Tax Act, 1947.
2. For the reasons indicated by a Division Bench of this Court in the case of Srinivasa Distributing Agencies v. State of Orissa  48 STC 453 and the further clarification made by us today in our order in State of Orissa v. Voona Suru Patra & Sons (S. J. C. No. 119 of 1977)  51 STC 410, which we adopt, we hold that sewing thread is cotton yarn and is liable to tax at the rate prescribed for taxing the turnover of cotton yarn. Our answer, therefore, is against the revenue and we must hold that the appropriate rate of tax is. 2 per cent and not 5 per cent.
There will be no order for costs.
B.K. Behera, J.
3. I agree with my Lord, the Chief Justice.