TMI Blog1968 (8) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... t was not intended to be an order of exemption made under the provisions of section 7 of the Act. - Civil Appeal No. 1038, To 1044 of 1966 - - - Dated:- 27-8-1968 - SHAH J.C. AND RAMASWAMI V. AND GROVER A.N. JJ. S.T. Desai, Senior Advocate (N.N. Bhattacharya, Advocate, Miss Bhuvanesh Kumari, Advocate, and J.B. Dadachanji, Advocate, of J.B. Dadachanji and Co. with him), for the appellant. O.P. Malhotra, R.N. Sachthey and B.D. Sharma, Advocate, for the respondent. -------------------------------------------------- The judgment of the court was delivered by RAMASWAMI, J.- These appeals are brought by special leave from the judgment of the Orissa High Court dated April 22, 1964, in Special jurisdiction Cases Nos. 27 to 33 of 1963. The appellant is a public limited company incorporated in the United Kingdom which has its head office in London and its principal office in India at 16, Netaji Subash Road, Calcutta. During the relevant period, i.e., from October 1, 1953, to June 30, 1955, the appellant which is a dealer in machineries, tools and machine parts had supplied these goods to individual consumers and Government departments including the Hirakud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of' sales tax from non-resident businessmen outside the territory of the State of Orissa 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 of India, has been suspended with immediate effect." On March 2, 1956, Parliament enacted the Sales Tax Laws Validation Act, 1956 (7 of 1956). This Act came into force with effect from March 21, 1956. Thereafter, the Government of Orissa issued a third press note dated December 31, 1956, which was published in the Orissa Gazette dated January 2, 1957. The first paragraph of this press note revoked the second press note dated November 2, 1955. In the second paragraph it was further directed that all proceedings for assessment and collection of sales tax in respect of such sales transacted between April 1, 1953, and September 6, 1955, should be taken up and completed. Relevant extracts from the third press note are reproduced below: "The State Government issued a press note, dated the 2nd November, 1955, to the effect that the levy of sales tax from non-resident businessmen outside the territory of the State of Orissa within the meaning of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment on December 4, 1956. The appellant-company challenged the seven orders of assessment for the period from October 1, 1953, to June 30, 1955, in appeals before the Assistant Commissioner who dismissed the appeals. The appellant-company took the matter in second appeal before the Orissa Sales Tax Tribunal which confirmed the orders of the Assistant Commissioner. Under section 24(2) of the Act, the Orissa Sales Tax Tribunal referred the following questions of law for the decision of the High Court: "(i) Whether, on the facts and circumstances of the case, the press notes dated November 2, 1955, and December 31, 1956, could not be deemed to have been issued under section 7 of the Orissa Sales Tax Act, and, as such, had full statutory force behind them and whether even otherwise the press notes were not binding on the State Government. (ii) Whether, on the facts and circumstances of the case, the assessments for the relevant quarters being initiated and completed within the interim period of vacuum between the press notes dated November 2, 1955, and December 31, 1956, were not absolutely illegal and unwarranted in view of the mandatory character of the said press notes. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount realised by any person by way of tax on sale of any goods, shall, notwithstanding anything contained in any provision of this Act, be deposited by him in a Government treasury within such period, as may be prescribed, if the amount so realised exceeds the amount payable as tax in respect of that sale or if no tax is payable in respect thereof." Section 2 of the Sales Tax Laws Validation Act, 1956, is to the following effect: "Validation of State laws imposing, or authorising the imposition of, taxes on sale or purchase of goods in the course of inter-State trade or commerce. -Notwithstanding any judgment, decree or order of any court, no law of a State imposing, or authorising the imposition of, a tax on the sale or purchase of any goods where such sale or purchase took place in the course of inter-State trade or commerce during the period between the 1st day of April, 1951, and the 6th day of September, 1955, shall be deemed to be invalid or ever to have been invalid merely by reason of the fact that such sale or purchase took place in the course of inter-State trade or commerce; and all such taxes levied or collected or purporting to have been levied or collected duri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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