State of Orissa vs Steel Industries of Orissa and Others

Leave granted in all the special leave petitions.

These appeals are sequel to the applications filed by the State of Orissa u/s 24(2)(b) of the Orissa Sales Tax Act, 1947 (the Act) for a direction to the Orissa Sales Tax Tribunal to state a case and refer the questions framed out of the appellate order of the Tribunal for the opinion of the High Court. The High Court dismissed the applications on the ground that the questions formulated for the opinion of the High Court had already been decided by a Division Bench of the High Court in State of Orissa Vs. Johrimal Gajanand, and since the view taken by the Tribunal was in conformity with the opinion expressed by the High Court, the applications were not competent. These appeals by the State of Orissa are against the orders of the High Court rejecting the applications of the State u/s 24(2)(b) of the Act.

We have today delivered judgment in Civil Appeals Nos. 2947-50 (NT) of 1977 wherein the High Court judgment in State of Orissa v. Mis. Johrimal Gajanand, (1976) 37 STC 157 has been rversed. For the reasons recorded and the conclusions reached by us in Johrimal Gajanand's case (supra), we allow these appeals, set aside the impugned orders of the High Court. The High Court also fell into patent error in not taking into consideration the amendment to Section 5(2)(a)(ii) of the Act made in the year 1978 with retrospective effect. We have upheld the validity of the amended Section 5(2)(A)(a)(ii) of the Act by our judgment delivered today in Civil Appeals No. 1811-15 of 1977 titled State of Orissa v. Minerals & Metals Trading Corporation of India Limited.

We allow the appeals in the above terms with costs. We further hold that the orders of the Tribunal in these cases shall be non-est and inoperative to the extent the said order are contrary to the law laid down by this Court. We quantify the costs as Rs. 5000/- to be paid by each of the assessee in each of the cases.