JAMMULA SRIRANGAM BROS Vs. SALES TAX OFFICER

JUDGEMENT

(1.) THESE five writ petitions along with others involving the same question of law were all originally heard together and went disposed of in one judgment by a Division Bench of this Court dated 13th March, 1959. The State of Orissa filed appeals before the Supreme Court including Civil Appeals Nos. 84 to 88 of 1963 which relate to the said five writ petitions now before us. The Supreme Court set aside the order of the High Court in the said appeals and remanded the writ petitions to the High Court or disposal in accordance with law in the circumstances hereinafter stated.

(2.) THE petitioners are merchants of Berhampur town carrying on the business of selling gold and silver ornaments. They claim exemption from payment of sales tax in respect of the sales of some gold ornaments on the ground that they were manufacturers of those ornaments and that while selling the same they were charging separately for the value of gold and the cost of manufacture. The exemption was claimed by virtue of notification No. 8728-C.T.-66/49 F. dated the 1st July, 1949, of the Government of Orissa in the Finance Department issued in pursuance of section 6 of the Orissa Sales Tax Act, 1947, exempting certain classes of sales from payment of sales tax. The item with which we are concerned in these petitions is item 33 of the said notification :-

(3.) SINCE the said judgment by the Court in 1959 what in the meantime intervened was this : In 1961 in order to validate assessments made on gold ornament dealers under the Orissa Sales Tax Act, 1947, the Orissa Legislature enacted the Orissa Sales Tax Validation Act, 1961 (Orissa Act 7 of 1961). Section 2 of the Validation Act is this :