CENTRAL POTTERIES LTD Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) The judgment in this appeal shall also govern the disposal of Civil Reference No. 37 of 1957 which, it was agreed by counsel for the parties, should be heard along with the first appeal. The first appeal arises out of the judgment and decree of the First Additional Judge to the First Civil Judge, Class I, Nagpur, dismissing the appellant-plaintiff's suit, Civil Suit No. 1-A of 1952.

(2.) The appellant-company filed a suit for recovery of Rs. 8,650-11-9 paid as sale tax. The company also claimed other reliefs, such as a declaration that it was not liable to pay sales tax and the granting of an injunction against the defendants prohibiting them from proceeding to demand, assessee or receive sales tax from the plaintiff. The original defendants in the suit were the then State of Madhya Pradesh through the Deputy Commissioner, Nagpur, and the Commissioner of Sales Tax, Madhya Pradesh, Nagpur. Pending the appeal, however, the plaintiff applied for amendment and added the Collector of Sales Tax, Bombay, as a party to the appeal in view of the States Re-organisation Act. It was conceded before us on behalf of the respondents that today the liability to refund the sales tax to the appellant-assessee would be that of the Collector of Sales Tax, Bombay, and that the first two defendants were not liable.

(3.) The fact necessary for the disposal of the appeal are as follows : The Central Provinces and Berar Sales Tax Act, 1947 (XXI of 1947) received the assent of the then Governor-General on the 23rd May, 1947, and the assent was first published in the Central Provinces and Berar Gazette, Extraordinary, on the 27th May, 1947. As soon as the Act came into force, the Department called upon all dealers liable to pay sales tax to register themselves. Pursuant to this announcement in the press, a copy of which was placed before us in the appeal, the appellant-company applied for registration to the Sales Tax Officer, Nagpur, on 2nd July, 1947, and a certificate of registration was granted to it on 21st July, 1947. (Certificate No. B. G-8.)