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TMI Blog1987 (4) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... Division Bench of this Court held that protein flour produced and marketed by the assessee is edible de-oiled cake falling under entry 29 of the First Schedule to the General Sales Tax Act, and is liable to be assessed to tax at 1¼ per cent. The levy of tax on the inter-State sales of protein flour at 4 per cent treating the same as general goods was held to be incorrect. In coming to the aforesaid conclusion, this Court, inter alia, had taken into consideration the report of the Government analyst to the effect that the samples of protein flour conform to the Indian Standard Specification for edible groundnut flour (solvent extracted) and the flour is fit for human consumption. The assessee's contention was accordingly accepted by this Court. 3.. The same question had again arisen for consideration before respondent No. 1 in connection with the sales tax assessment for the assessment year 1982-83. During this assessment year the assessee effected inter-State sales of protein flour (solvent extracted groundnut powder). The sales were determined by the first respondent at Rs. 5,92,800. The assessee claimed that these sales are liable to be taxed at 1¼ per cent under e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s pointed out to the Government Pleader that apart from the vague statement in the assessment order, there are no details as to whether special leave was granted by the Supreme Court for filing the appeal and if so on what date and the corresponding civil appeal number and also whether any order was obtained from the Supreme Court staying the operation of the judgment of this Court above referred. Learned Government Pleader was unable to furnish these details. We were shocked that the first respondent nonchalantly observed in the assessment order dated 2nd March, 1987 that he was unable to implement the order of this Court. The first respondent had the audacity to refer to a number of decisions of other High Courts which do not have any direct bearing on the issue under consideration and observe that those decisions were more acceptable to him than the decision of this Court. We felt that there were prima facie grounds to think that the first respondent committed contempt of this Court. It was in these circumstances that we directed the issue of notice on 31st March, 1987 suo motu, to the first respondent to show cause why he should not be punished for committing contempt of this C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above effect in the orders passed by the commercial tax authorities, including the head of the department, Commissioner of Commercial Taxes, Income-tax Officers, including the head of that department, the Commissioner of Income-tax, Central excise and customs authorities, including the Collector of Central Excise and Customs and a host of other authorities. The question for consideration is whether the authorities below can refuse to follow the judgments of this Court on the above grounds. 10.. Whenever a decision of this Court is found to be unacceptable to the authorities below the simplest course to follow is to carry the matter in appeal to the Supreme Court by following the necessary statutory procedure and seek suspension of the order appealed against. If the Supreme Court suspends the operation of the judgment or order appealed against, it is clear that the authorities in the State are under no legal obligation to follow the judgment so suspended till the matter is decided by the Supreme Court. What is really happening is that without following the above course the authorities are light-heartedly declining to follow the judgments of this Court on the ground that either a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 SC 1315. That was a case where the Under Secretary to the Board of Revenue, Orissa, had been admonished for contempt of court and directed to pay the costs of the proceedings before the High Court of Orissa. The occasion for the institution of contempt proceedings against the Under Secretary was the circulation of the view of the Legal Remembrancer and the Advocate-General to the District Magistrates of the Northern Division of Orissa dated January 19, 1955, containing the following endorsement: "I am directed to enclose copies of the opinions of the Legal Remembrancer and of the Advocate-General and to say that the Law Department are of opinion that no special authorization is necessary to empower Magistrates to take cognizance under section 20 of the Cattle Trespass Act. This may be followed until the matter is carried to the High Court in some case, so that the confusion created by the Orissa High Court decision reported in Padma Charan v. Rangadhar Das AIR 1951 Orissa 40 might be set at rest." The attention of the High Court was drawn to the aforesaid endorsement of the Under Secretary and the High Court directed to issue notices to the Under Secretary and also to the Legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to be sub judice. The Endowments Commissioner ordered that the decision of the High Court need not be followed. When the matter was brought to the notice of the Orissa High Court contempt proceedings were initiated against the Endowments Commissioner. After hearing the contemner the High Court found him guilty of contempt of court and admonished him in open court and directed him to pay Rs. 300 as costs of the proceedings. The High Court held that the conduct of the contemner far from being bona fide is clearly a mala fide one and he intentionally avoided to follow the decision of this Court by advancing grounds which were most inappropriate. The matter was then carried on appeal to the Supreme Court. The Supreme Court upheld the finding of the High Court that the conduct of the Endowments Commissioner was clearly mala fide. The Supreme Court observed in para 14: "Under article 227 of the Constitution, the High Court is vested with the power of superintendence over the courts and Tribunals in the State. Acting as a quasi-judicial authority under the Orissa Hindu Religious Endowments Act, the appellant (Endowments Commissioner) was subject to the superintendence of the High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als subject to its supervision should conform to the law laid down by it. Hence, the law laid down by the High Court has to be followed by the income-tax authorities situated in the area over which the High Court has jurisdiction. Adverting to the decision of the Supreme Court in East India Commercial Co. Ltd. v. Collector of Customs AIR 1962 SC 1893 the Gujarat High Court observed as under: "In view of this decision of the Supreme Court, the Income-tax Officer and the Appellate Assistant Commissioner were bound to follow the decision of this court in Hasanali Khanbhai's case [1987] 165 ITR 195 (App.). If they failed to do so, it would undermine the respect for the law laid down by the High Court and the constitutional authority of the High Court and their conduct would, therefore, be apprehended by the principles underlying the law of contempt." 15.. It is clear from the judicial pronouncements above referred that the authorities and the Tribunals functioning within the jurisdiction of this Court in respect of whom this Court has the power of superintendence under article 227 are bound to follow the decisions of this Court unless on an appeal the operation of the judgment is sus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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