9911796707
TMI Blog1952 (12) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... rious States of India. During the year 1949-50 the petitioner's gross turnover on sale of coal was estimated to be a sum of Rs. 6,11,717-2-9. After allowing for sales to registered dealers and a rebate of 2 per cent. the taxable turnover was determined by the Sales Tax Authorities to be Rs. 5,98,467. The petitioner claimed that he had sold coal outside Bihar to the value of Rs. 55,862-3-6. The petitioner demanded that this amount should be exempted from sales tax. On 30th October, 1951, the Assistant Superin- tendent of Sales Tax rejected the claim holding that the petitioner was liable to pay tax even on the quantity of coal sold outside Bihar. The petitioner alleges that he was illegally made liable to pay sales tax of Rs. 790-1-0 in exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the general law relating to sale of goods, the property in the goods has, by reason of such sale, passed in another State". The argument of the petitioner is that after the date when the Con- stitution came into force the second proviso was void and inoperative as it was in conflict with Article 286 (1) of the Constitution. Article 286 (1) states: "No law of a State shall impose, or authorise the imposition of, a tax on the sale or purchase of goods where such sale or purchase takes place-(a) outside the State; or (b) in the course of the import of the goods into, or export of the goods out of, the territory of India." The case of the petitioner is based on the Explanation to Article 286(1) which is to the following effect: "For the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was made under Section 13 by the Commissioner upon the basis of the petitioner's return. It is manifest upon these facts that the preliminary conditions required by Section 13 are satisfied, and the Commissioner had jurisdiction under Section 13 to make assessment. In fact the section imposes on him the duty to make assessment of the sales tax. If the assessment is made under the machinery of the Sales Tax Act, the assess- ment is manifestly made in exercise of the Commissioner's jurisdiction. The circumstance that the Commissioner has relied upon an ultra vires provision of the statute in making the assessment will not invalidate the assessment like an order of a Court lacking jurisdiction. The argument was stressed on behalf of the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w on the face of the record and that certiorari could be granted notwithstanding that an inferior tribunal had not acted without or in excess of its jurisdiction. But all the Judges constituting the Court held that a writ of certiorari was available in such a case only if the order of the tribunal was a "speaking order". It is not necessary to decide for the purpose of this case whether a writ of certiorari under Article 226 of the Constitution can properly be granted for a mere error of law committed by an inferior tribunal. For I consider that the petitioner has a complete and equally efficacious alternative remedy by way of appeal and revision to the authorities constituted under the machinery of the Sales Tax Act. Section 24 states that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner. The High Court took the view that the procedure laid down in the Act was not followed and that the order of the Central Traffic Board was most unsatisfactory. The Supreme Court allowed the appeal and set aside the order of the High Court granting the writ. The Supreme Court based its decision on the ground that the Act itself provided a complete and precise scheme for regulating the issue of permits and there was a regular hierarchy of administrative bodies established to deal with the regulation of transport by means of motor vehicles. The Supreme Court emphasised (1) [1952] S.C.J. 261. that the remedies for the redress of grievances or the correction of errors were found in the statute itself and it was to these remedies t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terpretation of Article 286 (1) of the Constitution, and, in particular, the explanation appended thereto has presented to me no small measure of difficulty. The Sales Tax Officer purported to assess the petitioner in regard to the item complained of on the hypothesis that Article 286 (2) of the Constitution read with the Sales Tax Continuance Order, 1950, promulgated by the President of India had no application to the case, and the tax on the sale of goods could continue to be levied until the 31st day of March, 1951. Mr. Ghosh, however, contends that the case is nevertheless governed by clause (1) (a) of Article 286, and as such exempt from taxation because the State could not impose a tax on the sale or purchase of goods which had taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
