9911796707
TMI Blog1956 (8) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... which they chose before the taxing officers. The main grounds on which the orders were attacked by Sri Ullal who appeared for all the petitioners and addressed the same arguments on behalf of all were: (1) The assessments offend the provisions of Article 286(3) of the Constitution of India. (2) Rules in accordance with which assessments were made are invalid as these were not passed by the Legislature. (3) Rule 23(5) which alone can be availed of for the purpose of the levy is declared to be ultra vires by the Supreme Court. Since the liability cannot be imposed on the petitioners under any other provisions and the view of the Supreme Court is binding, the petitioners cannot be taxed at all. Article 286(3), contravention of which is alleged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... skins the gross turnover of a dealer for the purpose of assessment was the amount for which the goods are bought by licensed tanners in Mysore. The word "licensed" was deleted by a notification in 1952 so that "tanners licensed or unlicensed" were placed on the same footing as regards liability and the gross turnover in the case of both was the amount for which goods were bought. The petitioners being unlicensed dealers are affected by this and so it is contended on their behalf that the amendment is illegal. Sub-rule (2) provides an exception to the general provision in rule 1(1) that the sales turnover has to be taken into account. The contention is thus against shifting the liability from the seller to the buyer. Whether it is the buyer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealers in hides or skins shall, subject to the provisions of section 3, be liable to taxation on each occasion of sale. " Section 3 states: "(1) Subject to the provisions of this Act (a) every dealer shall pay for each year a tax on his total turnover for such year. (5) The taxes under sub-sections (1) and (2) shall be assessed, levied and collected in such manner and in such instalments, if any, as may be prescribed: Provided that (i) in respect of the same transaction of sale, the buyer or the seller, but not both, as determined by such rules as may be prescribed, shall be taxed; (ii) where a dealer has been taxed in respect of the purchase of any goods in accordance with the rules referred to in clause (i) of this proviso, he shall not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly contravenes the provisions of section 5(vi) of the Act. This sub-rule has been held to be ultra vires by the High Court and, indeed, the learned Advocate-General of Madras did not in the High Court, as before us, dispute that rule 16(5) was repugnant to section 5(vi). That sub-rule however affects only unlicensed dealers and the appellants who are admittedly licensed dealers are not affected by that sub-rule." Since the existence of distinction between licensed and unlicensed dealers in regard to assessment is noticed in the question and it was conceded that the sub-rule was ultra vires, the validity or otherwise of the provision so far as unlicensed dealers are concerned cannot be regarded as having been settled. The objection to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conditions of a licence taken out or renewed by him are contravened or are not observed, the sales of the dealer, with effect from the commencement of the year in which such contravention or non-observance took place, may be assessed to tax or taxes under section 3, as if the provisions of section 5 or the notification under section 6, as the case may be, did not apply to such sales and notwithstanding that a licence, if any, taken out or renewed by the dealer continues to be in force during the year." Under the heading "Licences" in Part II, rule 5(1) states: "Every person who....................................... (e) deals in hides and/or skins whether as a tanner or otherwise... ............shall, if he desires to avail himself of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
