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TMI Blog1970 (3) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue, the assessee served on it a lawyer's notice that, in view of State of Mysore v. Lakshminarasimhiah Setty and Sons[1965] 16 S.T.C. 231., the tax charged on inter-State sales was illegal, and followed it up by filing the petitions in this court for direction to refund the tax already paid and also for prohibition from collecting the balance. In the second batch, Ashok Leyland Ltd., which is the common petitioner, seeks refund of Central sales tax paid for the assessment years 1962-63 to 1965-66 on the quantum of excise duty included in the chargeable turnover of inter-State sales. The ground in them is The State of Madras v. N.K. Nataraja Mudaliar[1968] 22 S.T.C. 376. in which the Supreme Court held that excise duty was entitled t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edule I was concerned, their sales were liable to levy both under the State Act as well as under the Central Act but in the case of declared goods mentioned in Schedule II, though levies might be made under both the Acts, levy under the State Act was liable to be refunded. This point of view does not help the revenue for the period prior to 1st October, 1958, in respect of which State of Mysore v. Lakshminarasimhiah Setty and Sons(2) would hold the field. As regards the excise duty, Khader Co. v. State of Madras[1966] 17 S.T.C. 396. pointed out that whereas rule 6(f) of the Madras General Sales Tax Rules, 1959, directed deduction of excise duty from the taxable turnover, no such provision had been made in the Central Act or the rules ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed to by-pass it and to resort to the constitutional remedy. We are inclined to think that article 226 of the Constitution is not intended to circumvent other remedies where they can well be resorted to. These are not the cases where other remedies are inadequate or unsuitable or the imminence of the situation warrants immediate relief under article 226 of the Constitution. Apart from these considerations, inasmuch as the orders of assessments were made more than four or five years before, or even more in some of the cases, the long delay in resorting to this court is also a factor dissuading it from exercising its discretion. We feel justified in taking that view having regard to the ratio of the majority opinion of the Supreme Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Ordinance and the Act which replaced it, by substituting a new section 9 for the old section 9, with the result that the inter-State sales attract Central tax by reason of their being so and the point of their charge has been disannexed from the one at which such sales would be chargeable under the local Act, if they were intra-State sales. Further, there is a provision validating the earlier assessment which "shall be deemed to be as valid and effective as if such assessment, reassessment, levy or collection or action or thing had been made, taken or done under the principal Act as amended by this Act." Sections 2 and 3 of the said Madras Amending Act have in effect, by a process of retro-operation, omitted all the relative local rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral tax on inter-State sales of the same goods, in the event of both the taxes being levied, the former should be refunded to the dealer who paid it. But we fail to see how this fact lays heavier burden on inter-State sales than on local sales and thus impedes the free flow of the former. The whole object of single point scheme of taxation is, as envisaged by section 15 of the Central Act, to limit the levy of sales tax in respect of declared goods to one single specified point in the series of sales, including inter-State sales. If there is no inter-State sale of particular declared goods, the same goods would suffer tax at the appropriate point of sale within the State. We do not think that there is anything in Larsen and Toubro Ltd. v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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