STATE OF PUNJAB AND ORS. versus M/S. AMRITSAR BEVERAGES LTD. AND ORS.

Citation: [2006] SUPP. 4 S.C.R. 353 · Decided: 08-08-2006 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Appeal(s) allowed

Judgment (excerpt)

ST A TE OF PUNJAB AND ORS. 
A 
v. 
MIS. AMRITSAR BEVERAGES LTD. AND ORS. 
AUGUST 8, 2006 
[S.B. SINHA AND DALVEER BHANDARI, JJ.] 
B 
Interpretation of statutes: 
Statutes-Age old and rigid laws-Creative interpretation-Resort to-
Held, Judiciary always responds to the need of the changing scenario in C 
regard to development of technologies and uses its own interpretative principle 
to achieve a balance when Parliament has not responded to the need to 
amend the statute having regard to the developments in the fields of science. 
Punjab General Sales Tax Act, 1948; 
Section 14(3)-Proviso-Books and documents in the form of the cash 
book ledger or other registers contained in a hard disk-Return of-Legal 
position stated. 
D 
A larger number of books and documents in the form of the cash E 
book ledger or other registers contained in a hard disk were seized by the 
officers of the Sales Tax De;>artment of the State of Punjab during a raid 
conducted in the premises of the Respondent. Seizure of documents 
indisputably was done in exercise of the powers of the authorities under 
Sub-section 3 of the Section 14 of the Punjab General Sales Tax Act, 1948. 
The •Jfficers of the Sale Tax Department asked the Respondents to appear F 
on several occasions so as to enable them to verify the contents thereof. 
Cooperation from the Respondents was not forthcoming as a ·result 
whereof the documents were not returned within the period stipulated 
thereunder. The High Court, applying the principle of literal 
Interpretation and following an earlier precedent, allowed the writ petition G 
field by the Respondents wherein while directing the appellants to return, 
the seized books, accounts, documents, computer disk in terms of the said 
provisions, the court also imposed costs of Rs. 2, 500/- in each case with a 
direction that the costs would be paid by the officers responsible for 
withholding the books, accounts, etc. personally from their pockets and 
353 
H 
354 
SUPREME COURT REPORTS [2006] SUPP. 4 S.C.R. 
A the same shall not be a burden on the State exchequer. 
B 
It was contended by the appellant that that Section 14 of the Act is 
directory in nature and not mandatory. 
Allowing the appeals, the Court 
HELD: I. I. Creative interpretations had been resorted to by the 
Court so as to achieve a balance between the age old and the advanced 
technology, on the other. The Judiciary always responds to the need of 
the changing scenario in regard to development of technologies. It uses 
its own interpretative principles to achieve a balance when Parliament has 
C not responded to the need to amend the statute having regard to the 
developments in ihe field of science. The way the Constitution of India 
had been interpreted differently having regard to different societal 
situations; same principle is applicable in respect of some statutes. 
D 
E 
1357-G, E-F] 
Liverpool and London S.P. and I Association ltd. v. M V Sea Success 
I and Anr., (20041 9 SCC 512; Union of India v. Naveen Jindal and Anr., 
[2004] 2 SCC 510; John Vallamattom and Anr. v. Union of India, (2003) 6 
SCC I and Kapila Hingorani v. State of Bihar, (2003) 6 SCC I, relied upon. 
1.2. The procedural laws should be construed to be ongoing statutes 
similar to the Constitution and, thus, creative interpretation according to 
the circumstances in permitted. The Court in view of development of 
science has to meet and contend with challenges as an intermediary 
between the litigant and the court. (358-E) 
F 
Sil, Import, USA v. Exim Aides Silk Exporters, Bangalore, [1999) 4 SCC 
567 and State of Maharashtra v. Dr. Praful B. Desai, 12003) 4 SCC 601, 
referred to. 
2.1. Active cooperation of the Respondents was necessary having 
regard to the proviso appended to Sub-section (3) of Section 14 of the Act 
G inasmuch as in terms thereof the officer was entitled not only to affix his 
signature and his official seal at one or more places thererupon but also 
the dealer was required to give a receipt therefor. In case of a hard disk, 
literal compliance of the said provision was impossible. Recourse to 
scientific method, therefore, was necessary. Even in absence of cooperation 
H from the Respondents nothing prevented the authorities of the Sales Tax 
• 
t 
.... 
STATE OF PUNJAB v. AMRITSAR BEVERAGES LTD. [SINHA, J.) 
355 
Department to make out copies of the said hard disk or obtain a hard copy A 
and fix their signatures or official seal in physical form thereupon and 
furn

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