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2023 DIGILAW 79 (ORI)

Bajrang Wheat Products Pvt v. Sales Tax Officer

2023-01-16

M.S.RAMAN, S.MURALIDHAR

body2023
JUDGMENT 1. The Petitioner is aggrieved by the notice in Form VAT 401 dated 30th November, 2017 asking the Petitioner to produce the books of accounts for the period from 1st April, 2014 to 30th June, 2017. 2. Mr. Jagabandhu Sahoo, learned Senior Advocate for the Petitioner has produced before the Court copies of the assessment orders passed under the CST (O) Rules for the period 1st April, 2012 to 31st March, 2013 and 1st April, 2015 to 31st March, 2017 and for the period 1st April, 2013 to 31st March, 2015 pursuant to the notices issued earlier under Annexures-1 and 2 to the Petitioner. 3. The reasons for the issuance of the notice under Form VAT 401 dated 30th November, 2017 have been provided to the Petitioner by the Sales Tax Officer (STO), Investigation Unit, Sambalpur by a letter dated 25th January, 2018 (Annexure-8). The said reasons read as under: 'In view of the above, it is to communicate that the investigation into the business activities of the dealer company has been initiated on the basis of the fact that the dealer company has dispatched the taxable goods to outside the state of Odisha on branch transfer for which the dealer company has claimed exemption of CST in the CST returns filed for the period under investigation. Such branch transfer is required to be examined with reference to the books of account and other connected evidences in order to ascertain the truthfulness of the tax liability discharged by the dealer company. Further, as the dealer has effected intrastate purchases of taxable goods with the claim of ITC for use as raw materials in the manufacturing activity, there might be the non-creditable ITC in respect of outward branch transfer and sale of tax exempted goods, which is also required to be examined. Besides the above observations, there might be any other issues affecting the tax liability of the dealer company which may surface in course of the examination of the books of account. The above observations are the reasons for which the production of books of account of the dealer company has been invited by virtue of Notice in Form VAT 401 vide No.807, dtd. 30.11.2017.' 4. The above observations are the reasons for which the production of books of account of the dealer company has been invited by virtue of Notice in Form VAT 401 vide No.807, dtd. 30.11.2017.' 4. In view of the fact that the reason for issuing the notice is regarding the claim of the Petitioner regarding branch transfers which issue for the aforementioned periods stands covered by the assessment orders under CST (O) Rules for the period from 1st April, 2012 to 31st March, 2017, the justification for the Form VAT 401 is valid only for the remaining period i.e. 1st April, 2017 to 30th June, 2017. 5. In that view of the matter, it is directed that the Petitioner will now produce before the STO, Investigation Unit, Sambalpur now stated to be at Bargarh the books of accounts for the aforementioned period i.e. 1st April, 2017 to 30th June, 2017. For this purpose, the authorized representative of the Petitioner will appear before the said Officer on 1st March, 2023 at 11 am. No further directions are called for in this petition. 6. The writ petition is disposed of in the above terms. An urgent certified copy of this order be issued as per rules.