STATE OF ORISSA vs M.A. TULLOCH AND CO.

The Supreme Court held that under Section 5(2)(a)(ii) of the Orissa Sales Tax Act, 1947, the production of a declaration under Rule 27(2) is not always obligatory for a selling dealer to claim a deduction for sales to a registered dealer. The Court clarified that while the rule must be substantially complied with, it can be reconciled as directory, allowing for other evidence to support the claim. The Tribunal's decision to uphold the State's objection was overturned, affirming the High Court's ruling that the deductions were valid.