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1962 (9) TMI 43 - SC - VAT and Sales TaxEnhancement of tax - amendment of the Indian Coinage Act (Act 3 of 1906) by the Amending Act 31 of 1955 the rate of sales tax which was levied on the appellant's beedies was .02 Ps. per rupee and thus the appellant was called upon to pay ₹ 25,038 more than he would have paid if he had been charged at the rate of 3 pies per rupee. Held that:- Appeal dismissed. The tax cannot be challenged on the ground that it is contrary to the provisions of the Constitution. Secondly, it was submitted that the Indian Coinage Act, being a Central Act dealing with "coinage and legal tender" under item 36 of List I, could not change the rate of tax under the Mysore Sales Tax Act. It is unnecessary to decide this question because if the Central Act, i.e., the Indian Coinage Act, has not the effect of changing 3 pies into .02 nPs. in the rate of tax leviable under the Mysore Sales Tax Act, the Mysore Existing Laws (Construction of References to Values) Act, 1957, which has been set out above has made a provision for charging the tax in terms of naya Paisas instead of pies. Therefore the levy of tax in terms of naya Paisas is not unconstitutional nor is it a taxing measure but it deals merely with the conversion of the old coinage into new coinage.
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