ASHOK SERVICE CENTRE & ANOTHER ETC. versus STATE OF ORISSA

Citation: [1983] 2 S.C.R. 363 · Decided: 18-02-1983 · Supreme Court of India · Bench: A.P. SEN · Disposal: Appeal(s) allowed

Cited by 3 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

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363 
A 
ASHOK SERVICE CENTRE & ANOTHER ETC. 
v. 
STATE OF ORISSA 
February 18, 1983 
[A.P. SEN, E.S, VENKATARAMIAH AND R.B. MISRA, JJ.] 
Orissa Sa/eJ Tax Act, 1947-Section 8-0ri1sa Additional Sa/eJ Tax Act, 
1975 as amended in 1979-Section 3(2)-Levy of tax ander tht amending Act of 
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1979 subject to section 8 of the 1947 Act-Section 3(2) ·provided that provisions of 
1947 Act apply mutatis mutandis in relation to additional tax as if they apply in 
relation to the tax payable under the Principal Act-The two Acts, if should be 
read together. 
Interpretation-mutatis mutandis-Meaning of-Words in an Act are clear-
lf open.to court to go in search of the intention of the Legislature-Later of two 
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Acts provides that the two are to be read together·-Whether every part of each 
Act must be con3trued as if the two Acts had been one. 
Words and phrases: Muta/is mutandi~Meaning of. 
The proviso to section 8 of the Orissa Sales Tax Act, 1947 (Principal Act) 
~ lays dowil that' the same goods cannot be taxed uader it" at more than one point 
in the same series of sales or purchases by successive dealers. In 1975 the State 
Legislature enacted the Oris~a Additional Salos Tax Act (the Act) levying addi-
tional sales tax on certain· classes of dealers. In 1979 the State Legislature 
amended the Act by the Orissa Additional Sales Tax (Amendment) Act, 1979 by 
which sections 2 and 3 of the Act were substituted by new sub·sections 2 and 3. 
After the· amendment section 3 of the Act provided that every dealer shall, in 
addition to the sales tax payable by him for a year under the said Act be liable 
to pay additional ·ta1 at such rate not exceeding one per cent of his gross turn-
over (excluding-the gross turnover which relates to sale and purchase of declared 
goods) for that year as may be notified from time to time by the State Govern .. 
meat. . By a notification the State Government notified the rates of additional 
tax payable under section 3 of the Act as amended in 1979 at one half per cent 
of the annual gross turnover. Sub·section (2) of section 3 1nade it clear that the 
provisions of the Principal Act would fnutatis mutandis apply ia relation to the 
additional tax as if they apply in relation to the tax payable under the Principal 
Act. 
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Construing section 3 of the Act arter its amendment, the State Government 
took' the view tbat the new levy was in the natrire of a multi point tax and that 
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every dealer was liable to pay additional tax on his annual gross h,1rnoy(lr irre·s-
pective of its taxobility under the Principal Act, 
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364 
SUPREME COUR1' REPORTS 
[1983] 2 S.C.R, 
In a number of writ petitions filed before the High Court by dealers it was 
contended that section 8 of the Principal Act which prohibited the levy of tax at 
more than one point in the same series of sales or purchases by successive 
dealers was applicable to the additional tax leviable under the Act as amended 
in 1979. 
Without referring to the effect of the provisions of section 3 of the Act the 
High Court held that since the Principal Ac:t and the Act as amended in 1979 
had been passed by a competent legislature providing for a different base and 
for a different scheme it was not open to the assessee to rely upon any of the 
provisions of the Principal Act relating to incidence and levy of tax. 
In appeal to thls Court it was contended on behalf of tho appellants that 
wherever there was no express provision to the contrary in the Act the provisions 
of the Principal Act, including those relating to the incidence and levy of tax 
should apply to tho additional tax also. 
The Department on the other hand contended that section 3(2) of tho Act 
was intended only to make those provisi1ons of the Principal Act relating to 
assessment and collection of tax applicable to proceedings under the Act and no 
part of section 3B to section 8 of the Principal Act would be applicable to tho 
levy of additional tax. 
Allowing tho appeals, 
HELD : If the contention of tho Department that only the machinery 
provisions of the Principal Act become.applicable to the proceedings under tho 
Act is accepted it would lead to many anomalies. (377 F] 
Section 8 of the Principal Act which begins with a non-obstante clause is 
given an over-riding effect over the rest of the provisions of the Principal Act. 
Levy of tax at a single prescribed point and prohibition against levy of tax at 
more than 

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