MOIDU Vs. STO, SPECIAL CIRCLE, CANNANORE AND ANOTHER

JUDGEMENT

(1.) The petitioner was assessed to Sales Tax for the year 1962-63 by Ex. P.1 order dated 12.3.1964. The turnover determined included the turnover pertaining to ghee in sealed containers to the extent of Rs. 1,65,000/-. This was taxed by Ex. P.1 order at two per cent. Later a notice was issued seeking to revise the assessment by taxing the turnover at five per cent. This was opposed. But overruling the objection an order Ex. P.4 was passed imposing tax at five per cent.

(2.) Item 39 in Schedule I of the General Sales Tax Act, 1125, as it stood at the relevant time when the assessment order was made applied to this case and it is in these terms:

(3.) Counsel for the petitioner has contended that the re-assessment has been made on the basis of R.33 and that though the Rule permits a recomputation of the tax by applying the higher grade, such Rule is not warranted by the Section under which it has been made. The Section is S.24. Counsel relied on clauses (f) and (g) of sub-section (2) of S.24. Sub-section(2) of S.24 enunciated the particular powers without prejudice to the generality of the 'forgoing power' envisaged by sub-section(1) of S.24. S.24(1) authorises the framing of Rules for carrying out the purposes of the Act. One of the purposes of the Act is to impose tax in accordance with the provisions of the statute. This means according to the rates prescribed in the Schedule. I do not think that R.33 is ultra vires of the rule-making power.