JUDGMENT

MISRA, C.J. - The Member, Additional Sales Tax Tribunal, Orissa, has stated this case under section 24(1) of the Orissa Sales Tax Act, 1947 (hereafter referred to as the "Act"), at the instance of the State and has referred the following two questions for opinion of the court :

"(1) Whether, on the facts and in the circumstances of the case, the Member, Additional Sales Tax Tribunal, is legally correct to consider M/s. Shree Shew Bhandar as not a fictitious dealer and whether it is legally correct to accept the declarations furnished by the said dealer to the present assessee amounting to Rs. 4,26,871.38 ?

(2) Whether, on the facts and in the circumstances of the case, the Member, Additional Sales Tax Tribunal, is legally correct to direct the assessing officer to scrutinise the declarations filed by the assessee granted by M/s. Shree Shew Bhandar and allow such of them as are in order ?"

2. The brief facts are these :

The assessee is a registered dealer carrying on business as a wholesaler in grocery articles and its place of business is Malgodown, Cuttack. For the quarter ending 31st December, 1971, the assessee claimed deduction of Rs. 4,26,871.38 on account of sales to