TMI Blog2007 (7) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... is, whether the dealer who purchases P.V.C. pipes in circumstances in which no sales tax was charged under section 5, is liable to pay tax on the said purchase price under section 5A of the Act, because the sale of PVC pipes is exempt from payment of sales tax by virtue of a notification issued by the State Government in exercise of its power under section 10 of the Act, in G.O. (P) No. 68/TD/90 (S.R.O. No. 499/1990). The learned counsel for the Revenue, Sri Mohammed Rafiq submitted that the legal issues involved in these petitions are no more debatable in view of the two decisions of this court in Deputy Commissioner of Sales Tax (Law) v. Supreme Boards, Pappinissery, Cannanore [1998] 111 STC 305; [1998] 6 KTR 374 and Deputy Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax under section 5A of the Act when they despatch the goods outside State either by way of stock transfer or by consignment sales. The validity of section 5A was upheld by the court in Malabar Fruit Products Co.'s case [1972] 30 STC 537 (Ker) and affirmed by the Division Bench in Yusuf Shabeer's case [1973] 32 STC 359 (Ker). The Supreme Court in Kandaswami's case [1975] 36 STC 191 had specifically approved the view taken by the court in the above two decisions. In the light of the authoritative decision of the Supreme Court upholding section 5A of the Act judicial discipline demands that the said decision has to be followed. Even if the Supreme Court did not consider some other possible contentions in arriving at the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 and effect both intra and inter-State sales. They are now fastened with purchase tax liability under section 5A of the Act by the sales tax authorities. Their grievance and the primary issue is that the burden of levy of tax under the Act need not be on them having exempted the SSI units from payment of sales tax under the Act by issuing an exemption notification under section 10 of the Act. This issue has been considered by this court in the aforesaid two decisions. However, the learned Senior Counsel, Dr. K.B. Muhamed Kutty, Mr. Pathrose Mathai and Sri Sukumar reiterate the same submissions and take us through several decisions of the apex court and also this court in aid of their submissions. In our considered opinion, the legal iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is, has its own limitations on the Bench. In a multi-Judge court, the Judges are bound by the precedents and procedures. They could use their discretion only when there is no declared principle to be found, no rule and no authority. On law of precedents, it is time and again noticed by the apex court in several decisions, that the precedents cease to be binding if it is reversed or overruled by a higher court; when it is affirmed or reversed on a different ground; when it is inconsistent with the earlier decisions of the same rank; when it is sub silentio; and when it is rendered per incurium. Such a situation does not exist in these cases. In our view, the aforesaid view of the apex court requires to be strictly followed by this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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