9911796707
TMI Blog1971 (11) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... mpted from paying the tax in view of the certificates. But, in respect of the additional tax on the turnover payable under section 5-A of the Act at the rate of 1/4th paisa on every rupee of the turnover of Rs. 3,00,000 or more, the petitioners, who are the principals, have been assessed. The petitioners have contended before the taxing authorities, as also before the Tribunal, that their agents only are liable, and not they, the principals, in view of the express provisions of section 11 of the Act. Their plea having been rejected by the taxing authorities and the Tribunal, they have raised this question in these revision petitions, which is common to all these petitions filed under section 22(1) of the Act. Thus, the only question of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty, retain out of the moneys payable to the principal, a sum equal to the amount of tax or penalty so paid by him: Provided that the tax or penalty assessed or levied on or due from the agent, may be recovered by the assessing authority from the principal, instead of from the agent. Explanation-For the purposes of this section the expression 'agent' shall have the meaning assigned to the expression 'dealer' in subclause (iv) of clause (e) of sub-section (1) of section 2." The learned counsel, Sri G.V.R. Mohan Rao, relies on the express language of the section and in particular the use of word "shall" and seeks to interpret the section as mandatory. He would therefore say that the tax shall be assessed or levied and collected fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the particular provision to other provisions dealing with the same subject and other considerations which may arise on the facts of a particular case including the language of the provision, have all to be taken into account in arriving at the conclusion whether a particular provision is mandatory or directory." Now, bearing these principles of interpretation if we read the provision, we see that the latter part of section 11 says that where the agent has paid such tax, he could recover the same from his principal. It is also very significant to see the proviso, which contemplates the recovery of tax from the principal instead of from the agent. It says that what is due from the agent may be recovered from the principal instead of fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eted in a way that the machinery is workable. We also think that there is some force in the contention of the learned Government Pleader that if the principals are sought to be exempted under section 11, there would be likely tax evasion as the business carried on through the agents may not reach the turnover exigible to additional tax, whereas a principal through his agents would be carrying on business reaching a turnover exigible to such tax. There has been some amount of debate as to the distinct legal meaning attributable to the terms "assessment", "levy" and "collection", but for the purpose of this case, it is not necessary to discuss that aspect of the matter. Having regard to the accepted rules of interpretation, the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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