Learned counsel for the petitioner essentially contends that he had maintained proper
books of account and produced the books of account as well as vouchers before the Assessing Au
thority, but the Assessing Authority without taking into consideration the fact that the subst
antial amount of purchases made by the petitioner were from local customers within the area wh
ere the petitioner operates, levied 1% tax on the entire purchase turnover. He being aggrieved
upon the same, filed First Appeal. In the First Appeal the Authority categorically noticed in
the order dtd.28.1.2008 that during the total purchases for the period from 1.6.2004 to 31.3.
2005, out of Rs.1,59,72,614.00 the appellant-petitioner had effected purchases of Rs.25,87,477
.00 from outside the State of Odisha and a sum of Rs.1,33,85,137.00 related to purchases from
various customers locally at door step counter being old ornaments on self made vouchers. When
the Appellate Authority called upon the petitioner to produce all the purchase vouchers, the
petitioner produced a few of the self made sample vouchers, totaling Rs.21,120.19 and claims t
hat all other purchases were in similar nature purchased locally but no such voucher beyond tu
rnover of Rs.21,120.19. The First Appellate Authority reduced the tax of the petitioner an
d deducted
