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TMI Blog1962 (8) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... fabrics, artificial silk fabrics, sugar and tobacco (Goods of Special Importance) Act, 1957-Central Act 58 of 1957 (to be hereinafter referred to as the Central Act 58 of 1957) and (ii) quash the Order No. D2/58-59 dated 19th March, 1960, (marked as exhibit A) passed by the first respondent and the appellate order in Appeal Petition No. 71/60-61 dated 10th December, 1960, passed by the second respondent by issue of a writ of certiorari or any other appropriate writ or direction or order as this Court may deem fit in the circumstances of the case. The petitioner is a firm manufacturing sugar candy from sugar since last about 20 years. The petitioner was assessed to sales tax on 19th March, 1960, by the first respondent for the year 1958-59 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ". "Sugar candy" is not separately dealt with in the Central Act 58 of 1957. Now coming to the legislative practice, in the Finance Act, No. 13 of 1960, it is mentioned that "'sugar' means any form of sugar containing more than ninety per cent. of sucrose"; the word "'sugar' means any form of sugar in which the sucrose content, if expressed as a percentage of the material dried to constant weight at 105' Centigrade, would be more than ninety. " Hence I have to conclude that both "sugar" and "sugar candy" were the subject-matter of legislation in Central Act 58 of 1957. But then does that Act take away the power of the State Legislature to levy sales tax on "sugar candy"? Sales tax legislations are enacted by the State Legislatures on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he category of goods declared to be of special importance in inter-State trade or commerce so that, following the imposition of uniform duties of excise on them, the rates of sales tax if levied by any State are subject to the restrictions contained in section 15 of the Central Sales Tax Act, 1956. Act 58 of 1957 was enacted by the Parliament in pursuance of the powers conferred under Entry 84 of List I of the Seventh Schedule of the Constitution. I mention all these facts to show that Act 58 of 1957 was passed by the Parliament not under any Article which makes that enactment binding on the State Legislature. The Parliament merely exercised its own powers, leaving it to the State Legislature to accept the scheme provided therein or to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act 9 of 1958, a dealer in "sugar" was exempt from paying sales tax in respect of his sale transactions in "sugar" on which excise duty levied by the Central Government with effect from the fourteenth day of December, 1957, had been paid. There is no dispute that excise duty had been levied and the same had been paid in respect of the "sugar candy" with which we are concerned in this case. It is agreed that but for the inclusion of Entry 31-B in the Fifth Schedule, the petitioner would not have had to pay sales tax in respect of the transactions in dispute. The question is whether that entry was validly added? It was uged by Sri K. Srinivasan, appearing on behalf of the learned counsel for the petitioner, that the State Legislature havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not a point taken in the petition. But it is undoubtedly an important question of law which can be decided solely on the basis of the provisions of the "Act". Hence, we thought it proper to decide that question. Section 5 of the "Act" provides for the levy of sales tax on sale or purchase of goods. Section 8 provides for exemptions. The Second Schedule deals with goods on the sale of which a single point tax is leviable on the first or earliest of successive dealers in the State under section 5(3)(a). The Third Schedule deals with goods in respect of which a single point purchase tax only is leviable under section 5(3)(b). The Fourth Schedule deals with declared goods in respect of which a single point tax is leviable under section 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r words, if excise duty mentioned in sub-section (2) has been paid in respect of the disputed transactionsas admittedly it has been paid-those transactions are exempt from sales tax. In view of the history of the legislation referred to earlier. I have to hold that "sugar" mentioned in section 8(2) still includes "sugar candy" though "sugar candy" is separately dealt with under Entry 31-B of the Fifth Schedule. It may be, as contended by the learned Government Pleader, that the Legislature wanted to bring "sugar candy" within the net of taxation. If that was its intention, it failed to convey that intention. At any rate that intention is not made clear. The Courts have to look at the provisions as they stand and if there is any ambiguity, g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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