LexAMRIT BANASPATI CO. LTD. & ANR. versus STATE OF UTTAR PRADESH AND ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
.t> S.C.R.
SUPREME COURT REP01{TS
313
curred after the Act, it must be interpreted reasonably that
1964
s. 13 also applies to such decrees.
Mr. Pathak, learned
K. Hutchi
counsel for the respondent, on the other hand, contends
Goll'der
that s. 13-A only applies to pre-Act debts, as s. 7 which Richobd;.; Fath<
declares the scheme of scaling down of debts applies only
mull and Co.
to pre-Act debts and the only exception to it is s. 13-A.
Subba Rao J.
Be that as it may, we cannot construe s. 13 with the aid of
s. 13-A which was introduced by the Amending Act 23 of
1948. This appeal .does not call for an interpretation of
s. 13-A of the Act and we shall not express any opinion
thereon.
The legal position may be briefly stated thus.
Section
7, 8, 9 and 13 form a group of sections providing the
principles of scaling down of debt• incurred by agricul-
mrists under different situations.
A debt can be scaled
Clown in an appropriate proceeding taken in respect of the
same.
But in the case of debts that have ripened
into
decrees, s. 19(1) and (2) prescribe a special procedure
ror reopening the decree only in respect of debts incurred
before the Parent Act. The Parent Act does not provide
for the reopening of decrees made in respect of debts in-
curred after it came into force, and for
understandable
reasons the relief in respect of such decrees is specifically
confined only to a concession in the rate of interest.
For the foregoing reasons, we hold that the order o!
the High Court is correct.
In the result, the appeal fails
and is dismissed with costs.
Appeal dismissed
AMRIT BANASPATI CO. LTD. & ANR.
v.
STA TE OF UTT AR PRADESH AND ORS.
(P. B. GAJENDRAGADKAR, C. J., M. HIDAYATULLAH, K. C.
DAS GUPTA, J. C. SHAH AND RAGHUBAR DAYAL, JJ.)
Sales Tax-Salts tax levied at the Ttltt of one anna pe1 rupr,._Nelv'
d•cimal
coina~• introduad by Act No. 31 of 19SS-EQect on
calculation of 1ales ta.r-Sales tax to be levied at the rate (If one
19M
July, 27
1964
Amrit Blinaspati
SUPREME COURT REPORTS
[1964]
anna or six ft.Toya Paisa-Indian Coinage Act, 1906 as 111nended by
Act No. 31 of 1955. ,_ 14(3). (2).
Co.
F
6
v.
or the as~essment years 195 -57 and 1957-58, the appellant was
Slate
of
Uttar assessed to sales tax in respect of Vanaspati and oil under the U.P.
Pradesh
·
Sales Tax Act, 1948.
By a notification issued on ~larch 31, 1956 under
s. 3-A(2), the rate of tax on Vanaspati Was fixed at one anna per rupC:e
at the point of sale by the manufacturer.
The appellant and S. P. Bhasin, a shareholder of the company. filed
a writ petition in the High Court challenging the validity of the U.P.
Sales Tax Validation Ac4 1958 and also prayed for ·1he quashing of the
assessment order dated October 15, 1960 and the order dated February J,
1961, of the Sales Tax Judge (Appeals), ~feerut, in connection with
the assess.ment of tax on the sale of Vanaspati and other articles both
on the ground that the 'sale tax was assesse~ at a higher rate than was
permissible under a valid law and that the tax had been assessed at
the rate of one anna and not at 6 Naya Paisa per rupee. The writ
petition was dismissed .by_ a 'single Judge of the_ High Court and the
Letters Patent Appeal was also dismissed by High COurt.
The appellant
came to this Court by special leave.
The only point urged before this Court was that the tax shouIJ have
been calculated at the rate of 6 Naya Paisa per rupee and I'.ot at the
rate of one anna per rupee as laid down in the relevant provisions of
the U.P. Sales Tax Act and the notice issued under its provi"iions.
Dismissing the appeal,
Ileld (per P. B. Gajendragadkar. C.J., M. Hidayatullah, K. C. Das
·Gupta
and Raghubar· Dayal, JJ.):
The High Court was ri,ght in
construing the provisions of sub-s. (3) of s. 14 of Indian Coinage Act
to mean that references to values in any enactment, notification, nl!e er
_order under any enactment or in any contract, . deed or jnstrumei:t,
expressed in old coins should be construed to be references to value-;
expressed in new coins by converting the old values at the rat<! of
16 annas, 64 pice and 192 pies to 100 Naya Paisa. The values expressed
in new. coins must be absolutely equivalent to the value of the old coins.
· Per· Shah, J.-The liability for sales tax after the amendment of the
Coinage Act will be at the rate of 6 new coins for every rupee of sale
price and not one anna. By the notification issued onExcerpt shown. Read the full judgment & AI analysis in Lexace.