JUDGMENT : P.K. Misra, J. - In this reference application the following question was referred for determination of this Court in accordance with law : "Whether, in the facts and circumstances of the case, the Tribunal is justified to support levy of purchase tax on paddy remaining stock as on April 1, 1978 and not purchased on or after April 1, 1978 ? 2. The facts of the case are that paddy was both taxable at the sale point and purchase point before April 1, 1978 in the following manner : (i) S.R.O. No. 901 of 1976 dated September 1, 1976 with effect from September 1, 1976 by item No. 24A of the list of taxable goods paddy, if sold for conversion for rice or broken rice, was taxable at the sale point. This position continued till March 31, 1978. (ii) By S.R.O. No. 903 of 1976 with effect from September 1, 1976 paddy purchased for the purpose other than conversion into rice or broken rice was taxable u/s 3-B of the Orissa Sales Tax Act, 1947 at the purchase point. This position continued till March 31, 1978. The aforesaid entries were amended with effect from April 1, 1978 in the following manner : (i) by S.R.O. No. 476 dated March 31, 1978 with effect from April 1, 1978 item No. 24A by which paddy is taxable at the sale point if sold for conversion into rice and broken rice was deleted ; and (ii) by S.R.O. No. 477 dated March 31, 1978 with effect from April 1, 1978 by serial No. 14 of the list of taxable goods paddy was inserted, that means whether paddy purchased for conversion into rice or broken rice or not becomes taxable at purchase point. In view of these notifications paddy becomes exempt from tax at the point of sale. 3. Petitioner, which is a mill has purchased paddy for the purpose of conversion into rice and broken rice and as the same was taxable at the sale point no tax was paid on the same when it was purchased in view of notification dated September 1, 1976 and it has 25,087.57 quintals of paddy in stock. The assessing officer included the value of such paddy in the taxable turnover as no tax has been paid on such paddy. The assessing officer included the value of such paddy in the taxable turnover as no tax has been paid on such paddy. The same was challenged before the Assistant Commissioner, but this point was decided against it and the Orissa Sales Tax Tribunal (for short, "the Tribunal") in its order confirmed the same. Being aggrieved by the aforesaid order, petitioner filed a reference application before the Tribunal and the Tribunal has referred the aforesaid question of law enumerated in paragraph 1 for determination of this Court. 4. From a narration of relevant statutory notification, it is clear that if paddy is purchased for conversion into rice or broken rice the same is not taxable on the purchase point but the same is taxable at the sale point, that means in the hands of the seller and the miller being purchaser no tax liability ensured to the miller-petitioner for such stock of paddy which has not been utilised by it for conversion into rice or broken rice. But the position has changed with effect from April 1, 1978, paddy whether purchased for conversion for rice or broken rice or for any other purpose has become taxable at the purchase point. But the stock of paddy which is already there with the miller cannot be held to be taxable as taxability of paddy on the purchase made on or after April 1, 1978 can only be liable for taxation u/s 3-B of the Orissa Sales Tax Act, 1947 (in short, "the Act") and stock of paddy having purchased by the miller prior to April 1, 1978 the same cannot be held to be purchases after April 1, 1978. 5. Learned counsel for the petitioner has drawn our attention to the decision of the Supreme Court in Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes) v, Padinjarakara Agencies [1985] 60 STC 308. That is a case where the petitioner had got some stock of paddy which was purchased at a lesser percentage of tax, i.e., at 3 per cent made sales of those paddy in stock after July 1, 1974 by the date of which rate of tax has been increased from 3 per cent to 5 per cent. That is a case where the petitioner had got some stock of paddy which was purchased at a lesser percentage of tax, i.e., at 3 per cent made sales of those paddy in stock after July 1, 1974 by the date of which rate of tax has been increased from 3 per cent to 5 per cent. Their Lordships of the apex Court have held that the dealer is liable to pay tax at 3 per cent as purchases took place prior to July 1, 1974, i.e., at the prevailing rate at the time purchases were made. This decision supports the conclusion reached by us as purchase of stock in hand was made on or before March 31, 1978, i.e., prior to April 1, 1978 when paddy purchased for conversion into rice or broken rice has become taxable at the purchase point and thereby has become exempted to be taxed at the sale point and as such, the same stock of paddy is liable to be taxed at the rate prior to April 1, 1978, i.e., at the nil rate. Therefore, we will answer the question raised in this reference application against Revenue as follows : "Under the facts and circumstances of the case, the Tribunal is not justified to confirm levy of purchase tax on the paddy remaining in stock as on April 1, 1978 and not purchased on or after April 1, 1978." The reference application is allowed. R.K. PATRA, J.--I agree. Final Result : Allowed