STATE OF ASSAM Vs. RAMESH CHANDRA DEY

JUDGEMENT

(1.) This appeal has been filed by the State of Assam against a judgment of the High Court of Assam dated July 16, 1956. By the judgment under appeal, the High Court held that S. 15 of the Assam Sales Tax Act. 1947 and Rule 80 framed under the Act were ultra vires, being a breach of Art. 286 (2) of the Constitution. The High Court granted a certificate under Art. 132 (1) of the Constitution.

(2.) R. C. Day, the answering respondent, is a wholesale dealer in tea, and has been in business since 1940. He registered himself as a dealer under the Assam Sales Tax Act on January 14, 1950. His business consists mainly of buying tea in Assam and selling it either in Assam or in Calcutta. In respect of tea sold in Calcutta. R. C. Dey consigns the tea to himself after purchasing it in Assam. This tea is then approved by prospective purchasers, to whom the documents of title are endorsed on receipt of the price.

(3.) In 1951 the Assam Sales Tax Act was amended by the Assam Sales Tax (Amendment) Act, 1951 (4 of 1951). Section 15 of the Act before the amendment provided that in calculating the net turnover of a registered dealer for tax purposes all sales made to another registered dealer of goods specified in the latter's certificate of registration were to be excluded from the gross turnover, if the goods were bought for resale. By the amendment in 1951, the section was amended by the addition of the words "in the State" after the words "resale". Thus, in calculating the net turnover of a registered dealer, the goods intended for resale in the State could alone be excluded from the gross turnover. This amendment was followed by amendment of the Rules. Rule 80 was enacted to provide as follows: