KALBARGA NAGAIAH Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) These petitions raise common questions of law and could, therefore, be disposed of together. They are filed for the issuance of a writ of mandamus or any other appropriate writ directing the State of Andhra Pradesh to refrain from imposing or collecting any tax under the provisions of the Hyderabad Sales of Motor Spirit Taxation Regulation, (XXIV of 135S-F). The petitioners are dealers in motor spirit, diesel oil, etc., and have banks situated either in the city of Hyderabad or other places in the State of Andhra Pradesh. They complain that the respondent has been levying and collecting sales-tax on the sales of petrol, purporting to exercise the powers conferred on them under the above mentioned Regulation and are threatening to cancel the licences in the event of failure of the petitioners to comply with the demands of the Sales-tax Department, though such an impost is illegal and ultra vires the powers of the State Government.

(2.) In these petitions, the constitutionality of the Regulation mentioned above is impugned. Before, we refer to the contentions urged on behalf of the petitioners, it is convenient to refer to the material portions of this Regulation :

(3.) It is urged that as the Military Governor carried on the administration of the erstwhile Hyderabad State as a conqueror all acts and laws attributable to him in such capacity came to an end the moment that regime ceased to exist. Alternatively, it was contended that assuming it was in his capacity as a Civil Administrator that he enacted various laws, it was ultra vires his powers as he had no competence to do it. The first part of the argument lacks substance. The position of the Military Governor could not be equated to that of a conqueror. When he assumed the role of an administrator it was not as a conqueror that he did it. We do not think that the police action undertaken by the Union of India could be described as an invasion of Hyderabad State. It has to be; remembered that there was a standstill agreement between the erstwhile Hyderabad State and the Union of India prior to the police notion which took place in September, 1948 by and under which all administrative arrangements as to matters of common concern including external affairs, defence and communications which were existing between the Crown and the Nizam immediately before 15-8-1947 should continue between the Dominion of India and the Nizam. There was some lawlessness and trouble in the State consequent upon the activities of some Organisations which were inspired by some ulterior motives. This led to the Union Government sanding some force to restore law and order in the State. In such a situation, we find it difficult to regard it an invasion of Hyderabad State as argued by the counsel for the petitioners.