JUDGMENT

B.N. MAHAPATRA, J. : This writ petition has been filed with a prayer to quash the order dated 30.7.2011 passed under Annexure-1, rectified order dated 15.9.2011 (Annexure-6) and the order dated 30.9.2011 (Annexure-8) passed by opposite party No.2-Deputy Commissioner of Commercial Taxes (LTU), Sambalpur Range, Sambalpur under Section 9C of the Orissa Entry Tax Act, 1999 (for short, “The Act, 1999”) for the period 1.7.2006 to 31.3.2009. Annexure-1 is the audit assessment order by which tax and penalty to the tune of Rs.39,22,01,484.00 has been raised. Annexure-6 is an order of rectification of mistake passed under Section 20 of the Act, 1999 making some rectification of mistakes occurred in the audit assessment order passed on 30.7.2011. By order under Annexure-8, opposite party No.2 has rejected the petitioner’s application for rectification of the audit assessment order dated 30.7.2011.

2.Petitioner’s case in a nutshell is that it is a public limited Company incorporated under the provisions of Companies Act, 1956 having its Registered Office at 4th Floor, Tolstoy House, Tolstoy Marg, Connaught Place, New Delhi and plants at Chandigarh in the State of Punjab and at Kolkata in the State of West Bengal and Branches in all over India. The petitioner has set up an Integrated Steel Plant at village-Thelkoloi, Rengali in the district of Sambalpur, Odisha. The petitioner-Company is engaged in manufacturing and selling of sponge iron, steel billets and HR Coil. For manufacturing sponge iron, steel billets and HR Coil, the petitioner purchases various raw materials including iron ore, Dolomite, pig iron, sponge iron, quartz, coke breeze, coking coal etc. The said raw materials are procured from the State of Orissa and outside the State of Orissa. The petitioner paid taxes on entry of those materials into the local area as required under Section 3 of the Act, 1999. Since the materials are used as raw materials, the petitioner paid entry tax at the concessional rate of 50 per centum of the scheduled rate. Opposite party No.2 vide order dated 30.7.2011 passed under Annexure-1 has rejected petitioner’s claim of concessional levy on the premise that the petitioner after using the above raw materials in manufacturing of sponge iron, billets and HR Coil has transferred the finished products so manufactured to its branches out side the State of Orissa which is treated to be violation of Rule 3(4) read with Form E-15. Opposite party No.2 also further relies upon Section 26 of the Act, 1999 read with Rule 19 of the Orissa Entry Tax Rules, 1999 (for short, “the Rules, 1999”) to deny the petitioner’s benefits of the concessional levy of tax. The other reason given by opposite party No.2 to deny the claim of concessional levy of tax in terms of Rule 3(4) is that the coal consumption in the captive power plant of the petitioner for production of electricity cannot be treated as raw material for production of sponge iron as the end product, i.e., electricity produced out of coal consumption is non-scheduled goods. In the impugned order of assessment opposite party No.2 has also levied tax on turnover of Rs.1130,22,17,978.00 @ 2% ignoring the fact that out of the entire turnover a part of the turnover is liable to be taxed at 0.5%, 1% and 2%. The opposite party No.2 in the impugned order also levied tax on return quantity of pig iron and steel billets received from Visakhapatnum Branch despite the fact that the subsequent sales, if any, have been sold within the State of Odisha and goods suffered from tax. Similarly, opposite party No.2 has also levied tax on returned finished goods received from other Branches due to certain defects, despite the fact that subsequent sales, if any, have been sold within the State of Orissa have also suffered tax. The petitioner’s request to make rectification of the impugned order passed under Annexure-1 has been rejected by opposite party No.2 under Annexure-2 without any valid reason. Hence, the present wri