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TMI Blog1972 (9) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... alers in the State of Gujarat against the issue of certificates in form No. XIV and resold the same in the State of Gujarat in the course of inter-State trade or commerce. The turnover of such sales aggregated to Rs. 27,00,834 in the accounting period 1st January, 1960, to 31st March, 1963, and Rs. 53,36,451 in the accounting period 1st April, 1963, to 31st March, 1964. The Sales Tax Officer, who is the first respondent in the petition, while assessing the petitioner to sales tax under the local Act treated these sales as exempt from tax as they were sales in the course of inter-State trade or commerce and hence not subject to the taxing provisions contained in the local Act by reason of section 75, which provided in so many terms that nothing in the local Act shall be deemed to impose or authorize the imposition of tax on any sale of goods which takes place in the course of inter-State trade or commerce. The Sales Tax Officer, however, proceeded to assess the petitioner to sales tax in respect of these sales under the Central Act and passed two separate orders of assessment, one in respect of the accounting period 1st January, 1960, to 31st March, 1963, assessing sales tax on a tu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om textiles, was assessed to tax for the year 1957-58 under section 9 of the Central Act, as it stood prior to its amendment by the Central Sales Tax (Second Amendment) Act, 1958. The assessee contended that as he was not the first or the earliest of successive dealers in respect of the turnover, he would not have been liable to be taxed under the Mysore Sales Tax Act, 1957, if the transactions of sale had been intra-State transactions and hence he could not be taxed in respect of the turnover under the Central Act. This contention was upheld by the High Court of Mysore which took the view that by virtue of section 8(2) of the Central Act, any exemption given by a State Act or the point determined by it at which a sale was to be taxed, applied also to assessments under the Central Act. The State of Mysore carried the matter in appeal to the Supreme Court but the view taken by the Mysore High Court was upheld by a majority of Judges in the Supreme Court. Mr. Justice Sikri, as he then was, speaking on behalf of the majority Judges, pointed out that when section 9(1) of the Central Act says that tax shall be levied in the same manner as tax on the sale or purchase of goods under the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ordinance, 1969, on 9th June, 1969, introducing certain amendments in the Central Act with retrospective effect. The amending Ordinance was replaced by the Central Sales Tax (Amendment) Act, 1969, which came into force from 30th August, 1969. The amendments made by the amending Ordinance and the amending Act were fairly extensive and since they were given retrospective operation, the Central Act as amended, governed the assessments for the relevant accounting periods. The effect of the amendments was to supersede the view taken by the Supreme Court in Yaddalam's case[1965] 16 S.T.C. 231 (S.C.); [1965] 2 S.C.R. 129.and other similar decisions. The amendment of section 2, clause (j), made it clear that the turnover for the purpose of assessment under the Central Act would have to be determined in accordance with the provisions of the Central Act and the Rules made thereunder and subsection (1-A) introduced after sub-section (1) in section 6 provided that a dealer shall be liable to pay tax under the Central Act on inter-State sale notwithstanding that no tax would have been leviable on it under the sales tax law of the appropriate State if such sale had taken place inside the State. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... challenge which formed the real subject-matter of controversy between the parties and which we must now proceed to consider. To appreciate the competing arguments which have been advanced before us at the Bar, it is necessary to refer briefly to the history of the legislation relating to imposition of tax on transactions of sale and its inter-relation with the constitutional provisions. The Government of India Act, 1935, by List II, entry 48, of the Seventh Schedule, conferred exclusive power on the Provincial Legislatures to legislate on the subject of "taxes on the sale of goods and on advertisements". The Provincial Legislatures in exercise of this legislative power enacted sales tax laws for their respective Provinces acting on the principle of territorial nexus, that is to say, they picked out one or more of the ingredients constituting a sale and made them the basis of their sales tax legislation. Whether the territorial nexus, put forward as the basis of the taxing power, would be sustained as sufficient was a matter of doubt not having been tested in a court of law but the fact remains that this exercise of taxing power led to multiple taxation of the same transaction by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te in which the goods were actually delivered for the purpose of consumption, until by law it was otherwise provided by Parliament. The decision in Bengal Immunity Company's case(1) removed, by making inter-State sales immune from taxation, the difficulties experienced by the trading community as a result of the judgment in United Motors case(2), but the importing States which had imposed tax on inter-State sales by non-resident dealers, relying on the principle of the judgment in United Motors case(2), were faced with innumerable claims for restitution of the tax realised. The President had, therefore, to promulgate Ordinance No. 3 of 1956, which was later replaced by the Sales Tax Laws Validation Act (7 of 1956), with the object of restoring for the period specified in the Act the decision in the United Motors case.[1953] 4 S.T.C. 133 (S.C.). The problem of tax on inter-State sales was in the meanwhile examined by the Taxation Enquiry Commission and after examining the problem in depth and analysing its various aspects, the Taxation Enquiry Commission made certain recommendations to the Central Government. These recommendations led to the enactment of the Constitution (Sixth Amen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buted among those States in accordance with such principles of distribution as may be formulated by Parliament by law. (3) Parliament may by law formulate principles for determining when a sale or purchase of goods takes place in the course of inter-State trade or commerce." The Parliament also with a view to giving effect to the recommendations of the Taxation Enquiry Commission enacted the Central Act on 21st December, 1956, in exercise of the legislative authority conferred by the Constitution (Sixth Amendment) Act, 1956. As the long title shows, the Central Act is divided into three parts: The first part is enacted to formulate principles for determining when a sale or purchase of goods takes place in the course of inter-State trade or commerce or outside a State or in the course of import into or export from India; the second part, to provide for the levy, collection and distribution of taxes on sales of goods in the course of inter-State trade or commerce, and the third part, to declare certain goods to be of special importance in inter-State trade or commerce and specify the restrictions and conditions to which State laws imposing taxes on the sale or purchase of such go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that no tax would have been leviable (whether on the seller or the purchaser) under the sales tax law of the appropriate State if that sale had taken place inside that State. (2) Notwithstanding anything contained in sub-section (1) or sub-section (1-A), where a sale in the course of inter-State trade or commerce of goods of the description referred to in sub-section (3) of section 8- (a) has occasioned the movement of such goods from one State to another; or (b) has been effected by a transfer of documents of title to such goods during their movement from one State to another; any subsequent sale to a registered dealer during such movement effected by a transfer of documents of title to such goods shall not be subject to tax under this Act: Provided that no such subsequent sale shall be exempt from tax under this sub-section unless the dealer effecting the sale furnishes to the prescribed authority in the prescribed manner a certificate duly filled and signed by the registered dealer from whom the goods were purchased, containing the prescribed particulars." Sub-section (1-A) has been introduced with retrospective effect by the Central Sales Tax (Amendment) Act, 1969, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appropriate State if under that law it is exempt only in specified circumstances or under specified conditions or in relation to which tax is levied at specified stages or otherwise than with reference to the turnover of the goods. * * * (5) Notwithstanding anything contained in this section, the State Government may, if it is satisfied that it is necessary so to do in the public interest, by notification in the official Gazette, direct that in respect of such goods or classes of goods as may be mentioned in the notification and subject to such conditions as it may think fit to impose, no tax under this Act shall be payable by any dealer having his place of business in the State in respect of the sale by him from any such place of business of any such goods in the course of inter-State trade or commerce or that the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) or sub-section (2) as may be mentioned in the notification." The machinery for assessment and collection of tax and penalty is set out in section 9, which reads: "9. (1) The tax payable by any dealer under this Act on sales of goods effected by him in the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) The proceeds in any financial year of any tax, including any penalty, levied and collected under this Act in any State (other than a Union territory) on behalf of the Government of India shall be assigned to that State and shall be retained by it, and the proceeds attributable to Union territories shall form part of the Consolidated Fund of India." Section 10 creates offences and section 10-A provides for imposition of penalty in lieu of prosecution. Section 14 declares certain specified goods to be of special importance in inter-State trade or commerce and section 15 lays down restrictions and conditions in regard to tax on sale or purchase of declared goods. The material part of section 15 reads as follows: "15. Every sales tax law of a State shall, in so far as it imposes or authorises the imposition of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely: (a) the tax payable under that law in respect of any sale or purchase of such goods inside the State shall not exceed three per cent. of the sale or purchase price thereof, and such tax shall not be levied at more than one stage..........." These are the relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax law "for the time being in force", that is, the sales tax law in force at the relevant time when the taxable event under the Central Act occurs and it would, therefore, include future sales tax law of the State; the State Government can do it by issuing a notification from time to time under section 8, sub-section (5). The chargeability having been thus left to the State Legislature and the State Government, there is complete abdication of its legislative function in regard to levy of tax on inter-State sales by the Parliament in favour of the State Legislature and the State Government, and section 6, which is the charging section, is, therefore, void and since the charging section constitutes the core of the taxing statute, the whole of the Central Act must be held to be void. This was one branch of the argument of the petitioners. The second branch of the argument was that even in fixation of rates of tax, which is an essential legislative function, the Parliament has effaced itself and abdicated in favour of the State Legislature. The rate of tax in respect of the transactions of sale falling within section 8(2)(a) is not determined by the Parliament but is left to be fixed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res and void. The last branch of the argument was directed against the constitutional validity of section 9. Sub-section (1) of section 9 provides that tax on inter-State sales under the Central Act shall be levied by the Government of India and the tax so levied shall be collected by the Government of India in accordance with the provisions of sub-section (2). Sub-section (2) enacts a fiction that the authorities for the purpose of assessment, reassessment, collection and enforcement of payment of tax and penalty under the sales tax law of the appropriate State shall, on behalf of the Government of India, assess, reassess, collect and enforce payment of tax and penalty payable under the Central Act as if such tax or penalty were a tax or penalty payable under the general sales tax law of the State and provides that for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State. It also specifically makes applicable the provisions of the general sales tax law of the State in respect of various matters enumerated there. These matters include not only procedural matters but also matters affecting substantive rights and liabilities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the Parliament has abdicated its legislative function in favour of another legislature in enacting sections 6, 8 and 9. Now the law is well-settled that where the constitution has entrusted the task of law-making to a legislature, the duty of law-making must be performed by the legislature itself and the legislature cannot abdicate or efface itself. The legislature alone must perform the essential legislative function and the essential power of legislation cannot be renounced by it in favour of any other body. It is not necessary to constitute abdication or self-effacement that the legislature should extinguish itself completely and efface itself out of the pages of the Constitution bequeathing all its rights to another authority which is to step into its shoes and succeed to its rights. It is sufficient to attract the constitutional inhibition if there is surrender by the legislature of essential legislative authority even in respect of a particular subject-matter of legislation in favour of another person or authority which is not empowered by the Constitution to exercise this function. To quote the words of Street on "Doctrine of ultra vires", a legislature cannot be pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gates of its choice for carrying out the policy laid down in the enactment and leave such delegates to work out the details within the frame-work of the policy to suit the varying aspects and needs of a complex situation. This would be all the more necessary in modern times when the legislature is called upon to enact laws to meet the challenge of complex socioeconomic problems. But the power conferred on the delegate must not be unrestrained or unfettered. It must not be, to use the words of Cardozo, J., "unconfined and vagrant"; it must be "confined within banks that keep it from overflowing". The legislature must lay down the legislative policy and the legal principles which are to control in given cases and provide a standard to guide the delegate in exercise of the power delegated to him. The exercise of the delegated power must be controlled and guided by the policy or principle laid down by the legislature so that the delegate is not free to depart from the legislative policy or principle and lay down a policy or principle of its own, which is an essential legislative function. If the legislature does not lay down any policy at all or declares its policy in vague and general ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in such a case would be whether the Parliament has abdicated its essential legislative function in favour of the State Legislature; has the Parliament said that within its allotted field, which is here tax on inter-State sales, what will operate is not its own legislative policy determined and chosen by it but legislative policy enunciated by the State Legislature, which has plenary power of legislation within its own field and which is not subject to any guidance or control from Parliament? If it has, it will be a clear case of abdication or self-effacement. With these prefatory observations, we may now proceed to consider whether in enacting sections 6, 8 and 9, the Parliament has abdicated or effaced itself. So far as section 6 is concerned, it is difficult to see how it can be said to be affected by the vice of abdication. Section 6 in terms clear and explicit imposes charge of tax on inter-State sales. It is, no doubt, true that the opening words of section 6 make it subject to the other provisions of the Central Act and, therefore, as pointed out by Sikri, J., as he then was, in Yaddalam's case(1), "the liability is not absolute but subject to the other provisions of the Act" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2-A) of section 8 is, however, significantly different and it affects quantum of tax and not chargeability. It is, therefore, not correct to say that the chargeability under section 6 can be set at naught by the State Legislature or that the effectiveness of the charge under section 6 is dependent on the will of the State Legislature. Section 8, sub-section (5), also likewise does not make chargeability dependent on the will of the State Government. It merely empowers the State Government in public interest to direct that in respect of certain goods or class of goods no tax under the Central Act shall be payable on inter-State sales or that tax on such sales shall be calculated at lower rates than those specified in sub-section (1) or sub-section (2). The condition for exercise of this power is that the State Government should be satisfied that it is necessary in public interest to direct that no tax shall be payable or that tax shall be payable at lower rates in respect of inter-State sales of certain class of goods. This power is a necessary power which must find place in all taxation measures. It is a power intended to provide for unforeseen contingencies. Take for examble a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates indiscriminately in a manner prejudicial to the free flow of trade and commerce in the country. There was multiple taxation on inter-State sales by different States, each State relying upon some territorial nexus with one or the other ingredient of the sales. This multiple taxation increased the burden on the consuming public and prejudicially affected the free flow of inter-State trade and commerce. The Constitution-makers, therefore, while retaining sales tax as a source of revenue for the States, introduced restrictions on the taxing power of the State and one of the restrictions was that enacted in the original clause (2) of article 286. That provided that except in so far as Parliament may by law otherwise provide, no law of a State shall impose or authorize the imposition of a tax on inter-State sale or purchase. The object of enacting this provision was to remove inter-State sales from the (1) [1878] 3 A.C. 889. (2) A.I.R. 1967 S.C. 691; [1967] 1 S.C.R. 15. taxing power of the States unless Parliament by law permitted them to be taxed. But article 286, clauses (1) and (2), were interpreted by the Supreme Court in United Motors case[1953] 4 S.T.C. 133 (S.C.). to mean tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime to prevent the States from bringing trade or commerce to tax so as to obstruct the free flow of trade by making commodities unduly expensive. Inter-State sales constitute a fairly large section of sales and tax on inter-State sales would, therefore, mean quite a sizable amount of revenue for the States. It was not the intention of the Parliament to dry up this source or to divert the same. It wanted to retain this source for the States and at the same time guard against the States levying sales tax on inter-State sales in a manner likely to be prejudicial to the free flow of trade and commerce in the country. The Parliament, therefore, amended the legislative entries and brought tax on inter-State sales within its exclusive legislative sphere so that the States could no longer levy tax on inter-State sales and added sub-clause (g) in article 269, clause (1), providing that the net proceeds of tax on inter-State sales shall be assigned to the Slates within which the tax is leviable under the law made by Parliament. The Central Act was also enacted by the Parliament with the same purpose. Section 9, sub-section (1), provided that tax on inter-State sales shall be levied by the Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to inter-State sales falling within section 8(1)(b), that is, inter-State sales to a registered dealer of goods described in section 8(3). There also a uniform rate of tax is prescribed. The rate of tax in respect of both these categories of inter-State sales was originally two per cent., but since 1st July, 1966, it has been raised to three per cent. The Parliament has thus prescribed a definite rate of tax in both cases and there is clearly no abdication or self-effacement on the part of the Parliament. Turning to sales of declared goods, we find that in case of these sales too, there is no abdication of its essential legislative function by the Parliament. By virtue of the definition clause in section 2(c) declared goods are goods enumerated in section 14 and declared by that section to be of special importance in inter-State trade or commerce. Manifestly, declared goods constitute a large bulk of the goods sold in inter-State trade or commerce. Section 15 prescribes the restrictions and conditions which must be complied with by every sales tax law of a State in so far as it imposes or authorises the imposition of a tax on sales of declared goods inside the State. These rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffacement. Moreover, it is obvious that the Parliament prescribed the same rate for inter-State sales as prevailed for intra-State sales in order that the States may not place the local consumers in a better position than the consumers outside by prescribing a low rate of tax for intra-State sales than what may be prescribed by the Parliament for inter-State sales. It was in pursuance of a definite legislative policy and with a view to achieving a definite legislative end that the Parliament assimilated the rate of tax in respect of inter-State sales of declared goods to the rate applicable to intraState sales of such goods in the appropriate State and there was no abdication of its essential legislative function by the Parliament in doing so. That takes us to transactions of sale falling within section 8(2)(b). That provision deals with goods other than declared goods and provides for the rate of tax in respect of inter-State sales of such goods to unregistered dealers. The rate of tax prescribed is 10 per cent. or the rate applicable to the sale or purchase of such goods inside the appropriate State whichever is higher. It is evident from the report of the Taxation Enquiry Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consumers in the States to which the goods are imported are not placed at a disadvantage as compared to the consumers in the State from which the goods are imported. The purpose behind the provision is to see that the States do not place the local consumers in a better position than the consumers outside by exempting intra-State sales of certain goods from tax when inter-State sales of those goods are taxable or by prescribing a lower rate of tax for intra-State sales than what is prescribed by the Parliament for interState sales. Now, the Parliament could have achieved this purpose by one of the three methods: (i) The Parliament could have prescribed a separate schedule of rates for each State showing the rates of tax chargeable on inter-State sales in cases where the movement of goods begins in that particular State, such rates of tax being fixed giving effect to the principle set out in section 8, sub-section (2-A), and then, whenever a change takes place in future in the rates prescribed by the sales tax law of any State, the Parliament could have amended the relevant schedule with a view to bringing the rates of tax chargeable on inter-State sales in accordance with the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficient legislative device intended to achieve adjustment of rates of Central tax according to a legislative policy determined and chosen by the Parliament. It avoids the disadvantages of the first two methods and yet achieves the same result. There can be no doubt that if the first method had been adopted, there could have been no complaint of constitutional failure in the exercise of legislative power. Equally, there could have been no such complaint if the second method had been followed. The delegation of the power to alter the rates of Central tax would have been valid since the exercise of the delegated power could have been guided and controlled by the principle formulated in section 8, sub-section (2-A). Then why should it make any difference if the third method is adopted? It is intended to give effect to the same legislative policy as the first two methods. Each of these represents a mode of execution or implementation of the same legislative policy and it is for the legislature in the exercise of its legislative discretion to decide how and in what manner its legislative policy shall be effectuated. The court cannot sit in judgment over the expressed will of the elected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of payment of tax under the local sales tax law of the State. This legislative policy was articulated in subsection (2). That sub-section consists of three parts. The first part says that the authorities for the time being empowered to assess, reassess, collect and enforce payment of any tax under the general sales tax law of the appropriate State shall, on behalf of the Government of India, assess, reassess, collect and enforce payment of tax including any penalty payable by a dealer under the Central Act. The same authorities which assess, reassess, collect and enforce payment of tax under the general sales tax laws of the appropriate State are entrusted with the task of assessing, reassessing, collecting and enforcing payment of tax and penalty under the Central Act. The second part of sub-section (2) then proceeds to say how these authorities shall proceed to assess, reassess, collect and enforce payment of tax and penalty under the Central Act and what procedure they shall device of a fiction for attracting the procedural provisions of the general sales tax law of the appropriate State for assessment, reassessment, collection and enforcement of payment of tax and penalty und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s tax law of the appropriate State are in their entirety made applicable for the purpose of assessment, reassessment, collection and enforcement of payment of tax and penalty under the Central Act. The effect of sub-section (2), is to quote the words of Shah, Actg. C.J., in State of Kerala v. Joseph and Company[1970] 25 S.T.C. 483 (S.C.)., that "the procedural law prescribed by the general sales tax law of the appropriate State applies in the matter of assessment, reassessment, collection and enforcement of payment of tax under the Central Sales Tax Act". There can be no doubt that this was the most convenient course to adopt but the question is, whether the Parliament could legitimately do so, without incurring the reproach of having abdicated its legislative function in doing so. Now, Mr. Kaji, the learned Advocate appearing on behalf of the petitioner, could not find fault with sub-section (2) of section 9 in so far as it has adopted the machinery provided by the general sales tax law of the appropriate State for assessment, reassessment, collection and enforcement of payment of tax or penalty under the Central Act. There can be no question of abdication of legislative power w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o do so, it was guilty of abdication of legislative power. Now, so far as advance payment of tax is concerned, we fail to see how it can be regarded as a substantive matter requiring exercise of legislative judgment on the part of the Parliament. So long as the incidence of tax liability and the rate structure are laid down by the Parliament in the exercise of its legislative judgment, the question as to when and where the tax shall be payable can always be left by the Parliament to be determined by the general sales tax law of the appropriate State, particularly since the tax is being levied for the benefit of that State. We do not think that any abdication of legislative power on the part of the Parliament can be said to be involved in adopting the general sales tax law of the appropriate State in the matter of advance payment of tax. But the position may not quite be the same so far as provisions relating to levy of penalty, imposition of tax liability on transferee of, or successor to, a business and recovery of tax from third parties are concerned. There was considerable debate before us on the question whether the provisions in the general sales tax law of the appropriate Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... far as it has adopted the future as well as existing provisions of the general sales tax law of the appropriate State, regarding levy of penalty, imposition of tax liability on transferee of, or successor to, a business and recovery of tax from third parties. Before we leave this point we may refer to the decision of the Supreme Court in B. Shama Rao v. The Union Territory of Pondicherry[1967] 20 S.T.C. 215 (S.C.)., on which great reliance was placed on behalf of the petitioners. We fail to see how the ratio of this decision has any application to the facts of the present case. There the question which arose for determination was whether the Pondicherry General Sales Tax Act (10 of 1965) was a valid piece of legislation. The Legislative Assembly of Pondicherry passed this Act in exercise of the legislative power conferred upon it under the Union Territories Act (20 of 1963), and it became law on receiving the assent of the President on 25th May, 1965. Section 1, sub-section (2), of the Pondicherry Act provided that the Act shall come into force on such date as the Government may by notification appoint and pursuant to this provision the Pondicherry Government issued a notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irects the executive to apply and implement such an Act. But when it not only adopts such an Act but also provides that the Act applicable to its territory shall be the Act amended in future by the other Legislature, there is nothing for it to predicate what the amended Act would be. Such a case would be clearly one of non-application of mind and one of refusal to discharge the function entrusted to it by the instrument constituting it. It is difficult to see how such a case is not one of abdication or effacement in favour of another Legislature at least in regard to that particular matter." It is difficult to see how these observations of the Supreme Court can be applied in the context of the Central Act. Here, so far as the Central Act is concerned, there is, as pointed above, no abdication by the Parliament of its legislative function. The Parliament has applied its mind and made a deliberate choice of legislative policy. Every provision made in the Central Act is inspired by a definite legislative policy and calculated to achieve a definite legislative end. There is no refusal on the part of the Parliament to discharge its legislative function. There is no surrender of its le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such sale or any portion of the turnover relating to such sale and no such tax could be levied or collected if the amendments made in the principal Act had not been made, then the dealer shall not be liable to pay any tax under the principal Act, as amended by the amending Act, in respect of such sale or such part of the turnover relating to such sale. The date 10th November, 1964, is taken because Yaddalam's case[1965] 16 S.T.C. 231 (S.C.). was decided on that date and 9th June, 1969, is taken, for that is the date when the Central Sales Tax (Amendment) Ordinance, 1969, was promulgated. It will, therefore, be seen that if a dealer effected any inter-State sale between 10th November, 1964, and 9th June, 1969, and under the belief that it did not attract tax under the Central Act, he did not recover the amount of tax from the purchaser, he would not be liable to pay tax on it even though by reason of the retrospective amendment of section 2, clause (j), and introduction of sub-section (1-A) in section 6, such tax would otherwise be payable. There would, therefore, be no loss caused to the dealer so far as the period from 10th November, 1964, to 9th June, 1969, is concerned. There ..... X X X X Extracts X X X X X X X X Extracts X X X X
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