COMMERCIAL TAX OFFICER BANGALORE Vs. VENKATESWARA OIL MILLS

JUDGEMENT

(1.) In these appeals by special leave, a common question of law arises for decision and that question relates to the scope and effect of the Central Sales Tax (Amendment) Act, 1969.

(2.) The amendment in question came to be enacted under the following circumstances. The High Court of Mysore in Yadalam Lakshminarasimhiah Setty and Sons v. State of Mysore, (1962) 13 STC 583 (Mys), held that under S. 8 (2) of the Central Sales-tax Act, 1956, prior to its amendment by Act 31 of 1958 a "sale" in the course of inter-State trade or commerce is to be taxed at the same rate and in the same manner as it would have been taxed, under the appropriate State law, if it had been an intra-State transaction, but without taking into consideration the minimum turnover fixed by the State law for the purpose of determining the liability of the "dealer" to be assessed under the State sales tax law. It further held that the words "same manner" in Section 8 (2) relate to the calculation of the tax and not refer to the procedure to be adopted while assessing the "dealer."

(3.) This decision was affirmed by the Supreme Court in State of Mysore v Yadalam Lakshminarasimhiah Setty and Sons, 16 STC 231 . Thereafter on June 9, 1969, the President of India promulgated the Central Sales Tax (Amendment) Ordinance 1969, with the object of superseding the effect of the decision in Yaddalam Lakshminarasimhiah Setty's case (supra) and to bring to tax sales effected by every dealer in the course of inter State trade or commerce notwithstanding the fact that no tax could have been levied under the sales tax law of the appropriate State if that sale had been an intra-State sale. That provision was given retrospective effect but it was provided in S. 10 (1) of the Amendment Act: