B J JEEVENDRIAH Vs. STATE OF MYSORE

JUDGEMENT

(1.) As common questions of law arise for consideration in this batch of writ petitions, they were heard together. The petitioners in some of the writ petitions have challenged the assessment orders passed by the concerned Commercial Tax Officers assessing the petitioners to tax under Section 6 of the Mysore Sales Tax Act, 1957 (hereinafter referred to as the Act). The petitioners in the remaining writ petitions have challenged the proposition notices issued by the concerned Commercial Tax Officers requiring the petitioners to show cause why tax under Section 6 of the Act should not be levied. The petitioners have challenged the validity of Section 6 of the Act. In one writ petition, the validity of Section 6-A of the Act has also been challenged. It was, however, contended by the learned counsel appearing for the petitioners that if the provisions of Sections 6 and 6-A of the Act are properly and reasonably construed, it will not be necessary to examine their contentions regarding the validity of those provisions. It is, therefore, necessary to examine, in the first instance, the relevant provisions of the Act and ascertain the true meaning and effect of the same.

(2.) Section 5(1) of the Act provides that every dealer shall pay for each year tax on his taxable turnover at the prescribed rate. Clause (a) of Sub-section (3) of Section 5 provides that notwithstanding anything contained in Sub-section (1), in the case of sale of goods mentioned in the Second Schedule, single point tax is leviable at sale point. Clause (b) of Sub-section (3) of Section 5 provides that in the case of purchase of the goods specified in the Third Schedule, single point tax shall be levied at the purchase point. Sub-section (4) of Section 5 provides that in respect of sale or purchase of declared goods mentioned in the Fourth Schedule tax shall be levied either at the sale or purchase point as specified in the said schedule. The tax levied under Sub-section (4) of Section 5 is also single point tax. Section 8 of the Act provides for exemption of tax. It provides that no tax shall be levied on the sale of goods specified in the Fifth Schedule, subject to the conditions and exceptions, if any, set out therein. It is, therefore, clear that so far as the sale of goods specified in the Fifth Schedule are concerned, the same are exempt from tax under the Act. The clear effect of these provisions is that in respect of sale or purchase of goods specified in the Second, Third and Fourth Schedules, single point tax is leviable at the prescribed rate and in respect of sale of goods specified in the Fifth Schedule, no tax at all is payable. It, therefore, follows that in respect of sale or purchase of goods other than those falling under the Second, Third, Fourth and Fifth Schedules, multi-point tax is leviable under Sub-section (1) of Section 5 of the Act at the prescribed rate. Sections 6 and 6-A of the Act, which require a more detailed examination, read as follows:

(3.) It was contended by the learned counsel for the petitioners that Section 6 which purports to levy tax under certain circumstances is a charging section. Sri M. P. Chandrakantaraj Urs, learned Government Advocate, also took the same stand. It is clear from the plain language of Section 6 that it is a charging provision. Certain conditions are required to be satisfied before the charge under Section 6 is attracted. The section opens with the words "subject to the provisions of Sub-section (6) of Section 5". Sub-section (5) of Section 5 provides that a dealer whose total turnover in any year is less than twenty-five thousand rupees shall not be liable to pay tax for that year. It further provides that notwithstanding anything contained in Clause (a) of Sub-section (5) of Section 5, every casual trader in any of the goods specified in the Third Schedule or the Fourth Schedule shall be liable to pay tax at the rate specified in the Act on his taxable turnover of sales or purchases in each year whatever his total turnover during the year may be. The conditions to be satisfied for attracting the charge under Section 6 are the following :