1982 (1) TMI 166 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of rule 26(1) requiring the use of international numerals.
2. Interpretation of statutory provisions regarding language and numerals.
3. Scope of rule-making powers under the Act.

Detailed Analysis:
1. The petitioner challenged the circular dated 26th August, 1978, and the notice dated 2nd January, 1979, issued by the respondent. The petitioner maintained accounts in Gujarati language with Gujarati numerals, which was accepted by authorities under relevant acts. The respondent found the use of Gujarati numerals to be a violation of rule 26(1) of the Tamil Nadu General Sales Tax Rules, 1959, and levied a composition fee. The petitioner contended that the rule was beyond the rule-making power conferred under the Act. The court examined the statutory provisions and held that rule 26(1) was not ultra vires of the Act as it fell within the rule-making powers conferred by the Act. The court dismissed the writ petitions challenging the circular and notice.

2. The court analyzed the constitutional provisions regarding language and numerals. It was observed that while the Constitution specified languages for official purposes, it did not address the use of numerals for official purposes of the States. The court clarified that numerals are distinct from language and the right to use a language does not inherently include the right to use specific numerals. The court rejected the argument that the use of Gujarati numerals was a constitutional right, as the Act only referred to languages and not numerals. The court concluded that the rule requiring international numerals was reasonable and fell within the rule-making powers granted by the Act.

3. The court considered the scope of rule-making powers under the Act. It noted that section 53(2)(n) enabled rules to be framed regarding the manner in which accounts are maintained. The court found that rule 26(1) mandating the use of international numerals was a valid exercise of rule-making power. The court emphasized that the prescribed numerals were of universal usage and did not unduly burden the assessees. The contention that "international numerals" did not exist was rejected, as it was deemed an unreasonable argument. The court held that the issue of numerals could be addressed through rule-making powers and did not require specific mention in the Act. Consequently, the writ petitions were dismissed, and no costs were awarded.