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TMI Blog1964 (4) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case, in view of the above press notes, and section 9-B(3) of the Orissa Sales Tax Act, before its amendment in 1958, the petitioner was not entitled to refund of the tax paid before assessment in excess of the collections actually made from his purchasers which were to be deposited with the Government, being not realisable under the provisions of both the Constitution and the Act itself? (iv) Whether, on the facts and circumstances of the case, in view of the third press note having been published in the Orissa Gazette on the 2nd January, 1957, permitting levy of sales tax only from that date, any valid assessment for the quarters ending 31st December, 1953, was not barred by limitation, under the provisions of the Orissa Sales Tax Act, as it stood at the material period. (v) Whether, on the facts and circumstances of this case, in view of the involuntary nature of the payment made by the petitioner under threat and coercion prior to the making of the assessment, the assessments for the quarters ending 31st March, 1954, to 30th June, 1955, should not be restricted to the actual collections only under the terms of the third press note?" 3.. The petitioner i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning of the 'Explanation' to Article 286(1)(a) of the Constitution of India, has been suspended with immediate effect. (Sd.) T. Prusty, Under Secretary to Government, Revenue (C.T.), Department." It is admitted that this press note was published in the Orissa Gazette No. 44 of 1955 (Part VII-page 572). On 2nd March, 1956, Parliament passed the Sales Tax Laws Validation Act, 1956, by which the effect of the judgment of the Supreme Court in the Bengal Immunity case[1955] 6 S.T.C. 446; A.I.R. 1955 S.C. 661. was taken away in respect of the Explanation sales which took place between 1st April, 1951, and 6th September, 1955, and the levy and collection of sales tax on such sales was also validated. The Government of Orissa then came out with a third press note dated 31st December, 1956, which was published in the Orissa Gazette on 2nd January, 1957. The first paragraph of this press note revoked the second press note issued on 2nd November, 1955. In the second paragraph it was further directed that all proceedings for assessment and collection of sales tax in respect of such sales transacted between 1st April, 1953, and 6th September, 1955, should be taken up and completed. It was als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... class of dealers from payment of sales tax. This power of exemption can obviously be used only where, but for the order of exemption, the dealer would be liable to pay sales tax. On the other hand, if, under the law as it stood on a particular day-as interpreted by the Supreme Court-a dealer was not liable to pay sales tax, Government could not obviously issue an exemption order under section 7 in respect of that dealer. The first press note merely informed the persons concerned that in consequence of the judgment of the Supreme Court in the United Motors case[1953] 4 S.T.C. 133; A.I.R. 1953 S.C. 252., Government would levy a tax on all sales effected on or after 1st April, 1953. They could have easily levied sales tax on all sales which took place prior to 1st April, 1953 (subject to the rule of limitation as regards assessment proceedings), but as the judgment of the Supreme Court was delivered only on 30th March, 1953, Government thought that the Explanation sales which took place on or after 1st April, 1953, should alone be subject to payment of sales tax. It must therefore be held, accepting Mr. Bhattacharjee's contention, that as regards Explanation sales which took place pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ept such a contention. An order which was only an administrative order on the date of its issue cannot subsequently become a statutory order under section 7 of the Orissa Sales Tax Act, merely because the Validation Act was passed by Parliament subsequent to the issue of that order. 10.. Coming to the third press note, the first paragraph of that note merely revoked the earlier (second) press note. In the second paragraph of the third press note, however, Government further directed the Sales Tax Authorities to proceed with the assessment and collection of sales tax in respect of Explanation sales which took place between 1st April, 1953, and 6th September, 1955. Apparently they did not want to proceed with the assessment and collection of tax in respect of Explanation sales which might have taken place from 1st April, 1951, to 31st March, 1953, even though the levy in respect of such sales was expressly validated by the Sales Tax Laws Validation Act. As pointed out in paragraph 7 above the first press note had already exempted from sales tax transactions which took place prior to 1st April, 1953, and hence the second press note referred only to those transactions which took plac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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