TMI Blog1953 (2) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to the counter-petitioners, prohibiting the collection of the sales tax called for in the demand notice mentioned in para. 7 of the application wherein the petitioners are asked to pay an amount of Rs. 5,360-13-0 within 21 days from its receipt which was on 16th October, 1951. The petitioners were assessed on a turnover of Rs. 4,01,417-0-6 which was the aggregate of 8 items detailed in para. 2 of the petition of which Items 2, 5 and 6 are exports outside India, to Rangoon. The complaint of the petitioner is that in so far as those exports are concerned, they are immune from being assessed, to sales tax and in so far as the aggregate amount of the said three items, viz.; Rs. 3,50,507-8-0 is concerned, the sales tax assessment thereon at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the exports. The same question arises as regards the writ of prohibition asked for in the applica- tion. We have the high authority of Lord Blackburn in Mackonochie v. Lord Penzance(3): " Where part is within the jurisdiction and part not, a prohibition is awarded against doing what is in excess of jurisdiction and a consultation as to the rest." (1) [1952] 3 S.T.C. 91. (3) (1881) 6 App. Cas. 424, at p. 444. (2) [1952] 3 S.T.C. 434. The proceedings complained of in S.T.M. 852 of 1950-51 should, therefore, be quashed in so far as they relate to the sales tax assessment on the exports outside India. They can be maintained as regards the rest. Indeed the grievance of the petitioners in the petition relates only to the sales tax upon the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties in the proceedings leading up to the litigation as well as in the course of it should be considered. These pro- ceedings, however, were not necessitated on account of any false return submitted by the assessees. After assessment, realising the inadequate and perhaps the un-supportability of the return made by them, the assessees conceded their liability to pay sales tax upon a much larger amount of turnover than was admitted by them in their return and took exception only to the levy of sales tax upon the exports outside India. He however sought in his application the cancellation of the entire proceedings relating to the sales tax. In view of these conflicting circumstances, I consider it proper not to disallow costs altogether ..... X X X X Extracts X X X X X X X X Extracts X X X X
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