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TMI Blog1968 (8) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... plied these goods to individual consumers and Government departments including the Hirakud Dam Project authorities in Orissa. The respondent had not levied any sales tax on these transactions till the decision of this court in State of Bombay v. United Motors (India) Ltd. [1953] 4 S.T.C. 133; [1953] S.C.R. 1069., pronounced on March 30, 1953. In that decision, it was held by this court that by vitrue of the explanation to article 286(1)(a) of the Constitution, as it existed before the Sixth Amendment, the State where the goods were actually delivered as a direct result of sale or purchase for the purpose of consumption, was the State which had the jurisdiction to tax such sales irrespective of the fact that the transfer of property took place in a different State. Some time after this decision was pronounced, the Government of Orissa issued a press note on June 5, 1954, which stated as follows: "It is notified for information of all ex-Orissa dealers who are engaged in the business of selling goods in the State of Orissa within the meaning of the 'explanation' to article 286(1)(a) of the Constitution that consequent upon the Supreme Court judgment in the case of State of Bombay v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent businessmen outside the territory of the State of Orissa within the meaning of the explanation to article 286(1)(a) of the Constitution of India has been suspended with immediate effect. Subsequently, the President of India issued the Sales Tax Laws Validation Ordinance, 1956, which was succeeded by the Sales Tax Laws Validation Act, 1956. Under this Act, the State Government is competent to levy, assess and collect sales tax on inter-State transactions from non-resident dealers for transactions that took place between the 1st day of April, 1951, and 6th day of September, 1955. Therefore, the previous press note mentioned above is hereby revoked. The State Government have given serious consideration to the question of levy, assessment and collection of sales tax under the Orissa Sales Tax Act, 1947 (14 of 1947), from non-resident dealers in respect of the sales transacted between 1st day of April, 1953, to 6th day of September, 1955. The State Government have decided that all proceedings relating to sales transactions within this period will be taken up and completed and tax due collected subject to the following conditions: (1) If a dealer can prove that he did not collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd unwarranted in view of the mandatory character of the said press notes. (iii) Whether, on the facts and circumstances of the case, in view of the above press notes, and section 9-B(3) of the Orissa Sales Tax Act, before its amendment in 1958, the petitioner was not entitled to refund of the tax paid before assessment in excess of the collections actually made from his purchasers which were to be deposited with the Government, being not realisable under the provisions of both the Constitution and the Act itself. (iv) Whether, in the facts and circumstances of the case, in view of the third press note having been published in the Orissa Gazette on the 2nd January, 1957, permitting levy of sales tax only from that date, any valid assessment for the quarters ending December 31, 1953, was not barred by limitation, under the provisions of the Orissa Sales Tax Act, as it stood at the material period. (v) Whether, in the facts and circumstances of this case, in view of the involuntary nature of the payment made by the petitioner under threat and coercion prior to the making of the assessment, the assessments for the quarters ending March 31, 1954, to June 30, 1955, should not be rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... collected or purporting to have been levied or collected during the aforesaid period shall be deemed always to have been validly levied or collected in accordance with law. Explanation.-In this section, 'law of a State' in relation to a State specified in Part C of the First Schedule to the Constitution, means any law made by the Legislative Assembly, if any, of that State or extended to that State by a notification issued under section 2 of the Part C States (Laws) Act, 1950." The main contention on behalf of the appellant is that the second press note issued by the Orissa Government on November 2, 1955, must be deemed to be an order of the State Government exempting non-resident dealers from liability to tax on inter-State trans- actions for the period from April 1, 1951, to September 6, 1955. It was argued that the press note should be deemed to have statutory effect and the sales tax authorities had therefore no jurisdiction to pass orders of assessment against the appellant-company on December 4, 1956. In our opinion, the argument put forward on behalf of the appellant is not warranted. In the first place, it is obvious that after the decision of this court in the Bengal I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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