Appeal Nos 887 and 888 of 1963
Appeals by special leave from the judgment and order dated October 23 1961 of the Allahabad High Court in Special Appeals Nos
483 and 484 of 1961
section K Kapur B L Khanna section Murty and K K Jain for the appellants
C B Agarwala and C P Lal for the respondent
July 27 1964
The Judgment of the Court was delivered by  RAGHUBAR DAYAL J
The appellant Amrit Banaspati Co Ltd hereinafter called the company a joint stock company and section P Bhasin
a shareholder of the company filed writ petition No 1003 of 1961 in the High Court of Judicature at Allahabad challenging the validity of the UP Sales Tax Validation Act 1958 Act XV of 1958 hereinafter called the Validation Act and praying for the quashing of the assessment order dated October 15 1960 and the order dated February 1 1961 of the Sales Tax Judge Appeals Meerut in connection with the assessment of tax on the sale of vanaspati and other articles both on the ground that the sales tax was assessed at a higher rate than was permissible under a valid law and that the tax had been assessed at the rate of 1 anna and not at 6 naye paise per rupee
The learned Single Judge of the High Court dismissed the writ petition as the Validation Act validating the relevant provision of the U P Sales Tax Act and the notification enhancing the rate of tax had been held valid by this Court in J K Jute Mills Co Ltd vs State of Uttar Pradesh  and as the contention about the calculation of tax to be at the rate of 6 naye paise per rupee and not at the rate of 1 anna had been repelled in earlier decisions of the Allahabad High Court one such decision being Ram Kishan Sunder Lal vs State of Uttar Pradesh1
A special appeal to a Division Bench of the High Court was dismissed 1  2 13 ST C 92 316 in view of the decision of this Court in the Jute Mills  Case1
It appears that the second question about the alleged error in calculating the tax at the rate of I anna instead of 6 naye paise per rupee was not raised before the Division Bench
Civil Appeal No 887 of 1963 has been filed by special leave against this order of the High Court
The other appeal No 888 of 1963 is filed against the order of the Division Bench confirming the order of the Single Judge dismissing the writ petition by the appellant company against the assessment order for the years 1955 56 1956 57 and 1957 58
The only point urged for the appellant in this writ petition had been that the Validation Act was invalid
The orders of the two Courts below repelled the contention in view of the decision of this Court
in the Jute Mills Case1
We did not allow the apellant to urge the grounds attacking the validity of the Validation Act in view of the decision of this Court in the lute Mills  Case1
The only point which is urged before us now is that the tax should have been calculated at the rate of 6 naye paise per rupee and not at the rate of 1 anna per rupee as laid down in the relevant provisions of the UP Sales Tax Act and the notification issued under its provisions
The contention is based on the provisions of the Indian Act III of 1906 hereinafter called the 
as amended by Act XXXI of 1955
It is urged that in view of the provisions of sub sections
2 and 3 of section 14 of the Coin age Act as amended reference to 1 anna in the relevant Act and notification issued thereunder should be construed to be reference to 6 naye paise and that the wrong calculation by the Sales Tax Authority has resulted in over assessment of tax
To appreciate the real contention urged
it is neces sary to refer to the relevant provisions of the 
Section 13  provides the extent up to which the tender of the various coins would be considered legal tender
Its relevant portions read 13
1 The coins issued under the authority of section 6 shall be a legal tender in payment or 1  317 on account a in the case of a rupee coin for any sum
b in the case of a half rupee coin for any sum not exceeding ten rupees c in the case of any other coin for any sum R not exceeding one rupee Porvided that the coin has not been defaced and has not lost weight so as to be less than such weight as may be pres cribed in its case
3 All nickel copper and bronze coins which may have been issued under this Act before the 24th day of January 1942 shall continue as before to be a legal tender in payment or on account for any sum not exceeding one rupee
 Section 14 after the amendment introducing the decimal system of coinage reads 14
1 The rupee shall be divided into one hundred units and the new coin representing such unit may be designated by the Central Government by notification in the Official Gazette under such name as it thinks fit and the rupee half rupee and quarter rupee shall be respectively equivalent to one hundred fifty and twenty five such new coins and shall subject to the provisions of sub section 1  andsub section 2 of section 13 and to theextent specified therein
be a legal tender inpayment or on account accordingly
2 All coins issued under the authority of this Act in denominations of annas pice and pies shall to the extent specified in section 13 be a legal tender in payment or on account at the rate of sixteen annas sixty four pice or one hundred and ninety two pies to one hundred new coins
referred to in sub section 1 calculated in respect of any such single coin or number of such coins tendered at one transaction to the 318 nearest new coin or where the new coin above and the new coin below are equally near to the new coin below
3 All references in any enactment or in any notification rule or order under any enactment or in any contract deed or other instrument to any value expressed in annas pice and pies shall be construed as references to that value expressed in new coins referred to in sub section 1 converted theret o at the rate specified in subsection 2
 The various factors determining the application of the provisions of sub section
2 for the purposes of calculating the equivalent value of annas pice and pies tendered at one transaction are several
The first requisite is that the amount taken into consideration is the amount which is ten dered at one transaction
The other is that the amount tendered in any of those coins should be within the extent of legal tender mentioned in section 13
When these two condi tions are present those coins would be legal tender in pay ment or on account at the rate of 16 annas 64 pice or 192 pies to 100 naye paise which is the new coin referred to in sub section
1 of section 14
This means that the number of annas or pice or pies tendered have to be multiplied by 100 10064 and 100192 respectively to get the equivalent number of new coins
In such arithmetical calculation there is the possibility that the equivalent number of naye paise be not an exact number and be a mixed number consisting of a whole number and a fraction
There is no coin of the equivalent to a fraction of a naya paisa in value
In such cases there is not going to be payment of the amount due in full if for the amount tendered in payment or on account there is no full equivalent of naye paises at the rate specified in sub section
It is for such contingency of a payment being not a full payment that sub section
2 further provides that the coins tendered will be legal payment at the specified rate calculated to the nearest new coin or where the new coin above or new coin below are equally near to the new coin below
The significance of this specified mode of calculation would be apparent from a concrete example
319 7 annas 6 annas and 5 annas calculated at the specified rate would be equal to 43 34 37 12 and 31 12 naye paise
According to the artificial calculation they will however be deemed to be legal tender for 44 37 and 31 naye paise s respectively as 44 and 31 naye paise are nearest to the calculated equivalent of 7 annas and 5 annas and 37 naye paise is the next coin below 37 12 naye paise which are equally below 38 naye paise and above 37 naye paise and the artificial mode of calculation directs the equivalents to be fixed in such circumstances to the new coins below
It is to be noted that each coin of one kind tendered is not considered as a unit for the purposes of calculation but all the Coins of the denomination are to be treated as one unit for this purpose
This is to ensure payment of the amounts due as fully as possible
This will again be clear on a concrete example
Seven one anna pieces are tendered say at one payment
If each separate piece be taken to be valid payment for 6 naye paise the seven one anna pieces will be good payment for 42 naye paise only but if taken as a whole they would be good payment for 44 naye paise
Similarly five one pice pieces will be good payment for 8 naye paise only and not for 10 naye paise which would be the case if each one pice piece was treated as good payment for 2 naye paise its equivalent if it be converted singly to naye poise
It is therefore clear that the provisions of sub s2 provide for the conversion of old coins into new at the time of payment or of accounting and then too for the conversion of the old coins within the limit of the extent to which they are legal tender which means that one cannot insist on paying a total sum of several rupees in naye paise calcula ted in the manner laid down in sub section
2 of section 14 and that two factors affect the determination of the number of nave paise equivalent in value to the value of the old coin of annas pice or pies tendered the two factors being the rate specified and the artificial way of calculation
The result of the artificial way of calculation is that sometimes equivalent number of naye paise is less than the actual value of the old coins at the specified rate and sometimes it is higher the difference being however very small
320 Sub section 3 however deals with a different matter
It has nothing to do with the actual payment of any amount
It provides a rule for construing values expressed in old coins as values expressed in new coins or naye paise and to achieve this object the only factor necessary to specify is the rate at which the value of the old coins is to be converted into the value of the new coins
The object of the provision is to provide a measure for arriving at the equivalent value in terms of new coins and not to provide how any amount due in terms of old coins is to be paid in terms
of new coins
Sub section 3 therefore simply provide that references in any of the documents referred to in that sub section to any value expressed in annas pice and pies shall be construed as references to that value expressed in new coins converted thereto at the rate specified in sub section
Sub section
2 specifies the rate
The rate specified in sub section
2 is 16 annas 64 pice or 192 pies to 100 new coins or naye paise
It is this rate which is referred to in sub section
There is nothing in sub section
3 which can be taken to refer o that part of sub s2 which relates to the actual calculation for arriving at the number of new coins deemed equivalent in value to a certain number of annas pice or pies coins tendered within the limits of legal tender
The provisions of sub section
3 of section 14 provide for the conversion of the value of old coins into that of new coins at the rate specified in sub section
2 and do not provide for conversion to be in accordance with the provisions of sub section
The other expression would have been preferable if the legislature had intended that the references of values expressed in old coins be construed as references to values in new coins according to the mode of artificial calculation mentioned in sub s2
The provisions deal with the method of construction of the expression of the value in documents be the private documents or be they enactments or notifications or rules or orders
The object was to determine the equivalent value which may be taken to replace the value as expressed in old coins
If the contention urged for the appellant be accepted the values expressed in annas pice or pies will not on conversion be precisely equivalent but could be very much divergent and would adversely affect 321 the interests of the persons to whom money be due or in certain circumstances the interests of the person from whom it be due
This could not have been contemplated by the legislature
The futility of the appellants  contention that the provisions of sub section
3 not only refer to the rate specified in sub section
2 but also to the method of calculation mentioned in that sub section is apparent from the anomalies which would arise if it be accepted
This can be illustrated from the various facts of these appeals
It is the appellants  contention in writ petition No 1003 of 1961 that the sales tax calculated at the rate of 6 naye paise and not at I anna per rupee on the whole turnover of Rs 1401817084 would reduce the tax demanded by the Sales Tax Officer by Rs 34355
This means that if the tax is calculated at the rate of 1 anna per rupee as expressed in the relevant provision of law or at 625 naye paise per rupee the amount of tax due from the appellant would be Rs 34355 more than the amount of of the same tax on the same turnover calculated at an equivalent value of 6 naye paise per rupee
In the other writ petition no reference was made by the appellants to the manner of calculating the tax the manner of calculation adopted by the taxing authority being the same as in the other writ petition as the appellants  claim for refund if determined at the values of one anna and nine pies calculated in accordance with sub section 2 of section 14 would have been much reduced
It will be sufficient to state that in clause e of para 16 of the writ petition the figures for the years 1956 57 for the amount paid at one anna per rupee and the amount payable at 9 pies per rupee would then vary the amount refundable to the appellant in a way as to make it much less
The figures would stand thus  RSa
P Total amount paid at I anna per rupee 805726106 Amount payable at 9 pies 60316753 Amount refundable and therefore which the petitioner company could detain 200559 53 If the amount payable be calculated at the rate of five naye poise in place of 9 pies the amount refundable would be 51 SC 21
322 much less as shown below Rs
Total amount paid at anna per rupee 805726 65 Amount payable at 5 naya paise 644661 32 Amount refundable 161065 33 The appellant stood to lose by calculating the tax payable in terms of naye paise and therefore made up an account at the old coin rates
The legislature could not have intended by the provisions of sub section 3 that a mere provision for working out the value in old coins into values in new coins should provide scope for such huge variations in the actual amounts to be paid or received
The process of conversion is not meant or designed to be a process for gaining more or less than what is rightfully due under a provision of law or under any contractual term
The conversion is a simple process necessitated by the exigency of payment to be in currency different from the one in which the payment was to be
We are therefore of opinion that what sub section 2 of section 14 requires is that references to any value expressed in annas pice and pies will be construed to such values expressed in new coins which would be absolutely equivalent to the value of the old coins when their value is converted at the rate of 16 annas 64 pice and 192 pies to 100 naye paise
Great reliance is placed for the appellants on the decisions of this Court in M G Beedi Works vs State of Mysore1
Apparently some observations of this Court in that case support the appellants  contention
But when they are considered in the context of that case they do not support the contention as the Court had not to deal in that case with the actual contention now raised before us
In the Beedi Works Case the sales tax was to be levied at the rate of 3 pies for every rupee of turnover
The 1 1963 Supp 1 SCR 275
323 amount of tax calculated at 3 pies per rupee worked out to Rs 91690 and calculated at the rate of two naye paise the equivalent value of 3 pies when calculated in the manner laid down in sub section 2 of section 14 worked out to a figure higher by Rs 25038
The tax was assessed at two naye paise per rupee in view of the provisions of
 the Mysore Existing Laws Construction of References to Values Act 1957 Mysore Act XII of 1957
Section 3 of that Act said  3
Construction of references to certain values in existing laws
In every existing law all references to any value expressed in annas pice and pies shall be construed at references to that value ex pressed in new coins referred to in subsection 1 of section 14 of the Indian Central Act III of 1906 converted thereto at the rate specified in sub section 2 of section 14 of the said Act
 The assessee by his writ petition questioned the validity of the enactment which led to such a result in the amount of tax assessed
The contention raised was not that the rate of calculation was wrong but was that the law providing for the assessing of tax at the rate of 2 naye paise instead of 3 pies per rupee was invalid as it amounted to enhancing the tax by an Act which was not enacted in accordance with the procedure laid down in the Constitution
This is clear from what was stated at p 277 it being The grievance of the appellant was that according to the Mysore Sales Tax Act he was liable to sales tax at the rate of 3 pies for every rupee on the turnover and calculated on that basis the amount of tax would be Rs 91690 but after the amendment of the Indian Act 3 of 1906 by the Amending Act 31 of 1955 the rate of sales tax which was levied on the appellant s Bee was 02 nPs
per rupee 324 and thus the appellant was called upon to pay Rs 25038 more than he would have paid if he had been charged at the rate of 3 pi Is per rupee
It was contended on behalf of the appellant in the High Court and before us that this amounted to enhancement of tax which was illegal because the tax had not been increased in the manner provided under the Constitution and thus it was a breach of Article 265 of the Constitution and was therefore void and ille gal
 This Court further said at p 279 Two objections were taken to the validity of the tax  Firstly it was argued that by the substitution of 2 naye paise in place 3 pies there was a change in the tax exigible by the Mysore Sales Tax Act and this could only be done if that enactment had been passed according to the procedure for Money Bills in the manner provided by Articles 198 199 and 207 of the Constitution and as no such Money Bill was introduced or passed for the enhancement of the tax the tax was illegal and invalid
It is clear that the contention was not that the tax should be calculated at a rate equivalent to 300192 naye paise ie 1916 naye paise and not at 2 naye paise
It was not urged that the assessment could not have been at 2 naye paise in view of the provisions of section 3 of the Mysore Act of 1957
What was contended was that the assessment at the rate of 2 naye paise per rupee instead of 3 pies per rupee amounted to assessment of tax at an enhanced rate and that the Mysore Act due to procedural defect was not valid law
This Court dealt with these two objections and simply said with respect to the contention about the provision of law amounting to a provision enhancing the rate to tax p 279  In our opinion by substitution of new coinage ie naye paise in place of annas pice and pies no enhancement of tax was enacted but it was 325 merely a substitution of one coinage by another of equivalent value
 This Court expressed the opinion that a law providing for substitution of new coinage in place of old coinage in the expression of values does not amount to a provision of enhancing the tax
The pith and substance of the Act was substitution in terms of new coinage and not varying the rate of tax
On p 278 however this Court after referring to the provisions of sub sections 1 and 2 of section 14 of the Indian about the division of a rupee into 100 naye paise and the old legal tender in annas Vice and pies remaining legal tender in naye paise and referring to the mode of calculation specified in sub section 2 of section 14 said Sub section 3 provides that all references under any enactment to annas pice or pies have to be construed as references to the new coin referred to in sub section 1
In other wards wherever the old legal tender ie annas pice and pies is mentioned in an enactment it is to be converted into naya paisas and the naya paisas are to be substituted in place of the old legal tender calculated in the manner laid down in sub section 2
 Stress is placed on the last sentence but this cannot be taken as the decision of the Court on the question that sub section 3 of section 14 made reference not only to the rate of conversion but also to the mode of calculation as that question had not been considered in any manner
The last sentence was a sort of a paraphrase of what had been said earlier in the quotation with respect to the provisions of sub section 3
This is clear from the facts that the provisions of subsection 3 have not been stated in full and have been referred to upto the stage of reference to the new coin referred to in subsection 1 and that the last portion of the provisions of sub section 3 ie converted thereto at the rate specified in sub section 2 has not been mentioned
It is thus that the latter part of the observa 326 tions happened to refer to the method of calculation and not to the rate specified in subsection 2
The Court was at the time thinking of the value of 3 pies in terms of naye paise as calculated according to the provisions of sub section 2 there being no contest before it that the value substituted to the equivalent of 3 pies for assessing the tax was not a correct value for substitution in place of 3 pies
We therefore do not construe the expression relied upon by learned counsel for the appellant to be a decision of the Court on the construction of the provisions of sub section 3 of section 14 and are therefore of opinion that the observations in that case cannot be taken to be a decision of this Court on the actual point for determination now before us
We therefore hold that the High Court is right in construing the provisions of sub section 13 of section 14 of the Indian to mean that references to values in any enactment notification rule or order under any enactment or in any contract deed or instrument expressed in old coins should be construed to be references to values expres sed in new coins by converting the old values at the rate of 16 annas 64 pice and 192 pies to 1 00 naye paise
We accordingly dismiss the appeals with costs
SHAH JI am unable to agree with the view expressed by my learned brother Raghubar Dayal J about the interpretation of section 14 which was incorporated by Act 31 of 1955 in the III of 1906
For the assessment years 1956 57 and 1957 58 the appellant was assessed to sales tax in respect of Vanaspati and oil under the UP Sales Tax Act XV of 1948 as amended by the UP Act XXV of 1948
By a notification issued on March 31 1956 under section 3 A2 the rate of tax an Vanaspati was fixed at one anna per rupee at the point of sale by the manufacturer
Validity of that imposition was challenged by the appellant but the question is not now open to be canvassed in view of the decision of this Court in J K Jute Mills Co Ltd vs State of Uttar Pradesh1
The only question which survives is about the 1  327 quantum of liability of the appellant under the notification in terms of the new decimal coinage introduced by Act 31 of 1955
The appellant has claimed that its liability computed in the light of section 143 of the would be Rs 34385 less than the amount demanded by the Taxing Authorities
Section 13 of the III of 1906 which was substituted by Act 28 of 1947 for the original sections 13 and 14 in so far as it is material provides 1 The coins issued under the authority of section 6 shall be a legal tender in payment or on account a in the case of a rupee coin for any sum b in the case of a half rupee coin for any sum not exceeding ten rupees c in the case of any other coin for any sum not exceeding one rupee 2    Section 14 which added by Act 31 of 1955 provides 1 The rupee shall be divided into one hundred units and the new coin representing such unit may be designated by the Central Government by notification in the Official Gazette under such name as it thinks fit and the rupee halfrupee and quarter rupee shall be respectively equivalent to one hundred fifty and twenty five such new coins and shall subject to the provisions of sub section 1 and sub section 2 of section 13 and to the extent specified the rein be a legal tender in payment or on account accordingly
2 All coins issued under the authority of the Act in any denominations of annas pice and pies shall to the tent specified in section 13 be 328 a legal tender in payment or on account at the rate of sixteen annas sixty four pice or one hundred and ninety two pies to one hundred new coins referred to in sub section 1 cal culated in respect of any such single coin or number of such coins tendered at one transac tion to the nearest new coin or where the new coin above and the new coin below are equally near to the new coin below
3 All references in any enactment or in any notification rule or order under any enactment or in any contract deed or other instrument to any value expressed in annas pice and pies shall be construed as references to that value expressed in new coins referred to in sub section 1 converted thereto at the rate specified in sub section 2
 Sub section 1 of section 14 declares a rupee as equivalent to a hundred new coins and a half rupee and a quarterrupee as equivalent to fifty new coins and twenty five new coins respectively
These new coins are made legal tender in payment or on account as provided in section 13 of the Act
By sub section 2 all coins issued under the authority of the Act in denominations of annas pice and pies also remain legal tender in payment or oil account at the rate of sixteen annas sixty four pice or one hundred and ninetytwo pies to one hundred new coins
An anna is therefore made legal tender for 2514 a pice for 25116 and a pie for 25148 new coins
But this involves adjustment of fractions of new coins and the Legislature has instead of issuing fractions of new coins a step which would have involved the issue of coins of insignificant value provided for rounding off fractions of new coins when to discharge an ascertained liability in a single transaction payment is made in annas pice or pies
This table of equivalence prescribed by sub section 2 however applies only when payment is made in old coins to discharge liability under a single transaction
Sub section 3 is an interpretation clause
Where under any law contract or instrument reference is made 329 to annas pice or pies liability arising in any transaction governed thereby will be construed in terms of new coins converted at the rate specified in sub section 2
This conversion involves two steps substitution of the value in terms of new coins by the application of rates mentioned in sub section 2 and rounding off the fractions if any resulting from such application
When there is in any law contract or instrument a reference to any value expressed in terms of annas pice or pies by sub section 3 the reference has to be construed as if the value is expressed in terms of new coins at the rates specified in sub section 2
Liability to pay an amount in one transaction ascertained in terms of new coins may be discharged under subsection 2 by tender of annas pice or pies according to the table of equivalence and the fractions may be rounded off
But in the ascertainment of liability under a transaction sub section 2 does not come into play
Liability under a transaction is ascertained under the general law and sub section 3 comes in aid as an interpretation clause when the value is expressed in some law contract or instrument governing a transaction not in terms of new coins but of annas pice or pies
Sub section 3 does not attract the rule of rounding off at the stage of discharge of liability under any concrete transaction it merely prescribes the value which shall be deemed to be substituted in any law contract or instrument when the value is specified therein in terms of annas pice or pies
It is attracted when liability declared in annas pice or pies is to be ascertained in terms of new coins whereas sub section 2 operates in considering whether a certain payment in annas pice or pices discharges an ascertained liability
There is nothing in the statute which supports the view that what the Legislature intended by enacting sub section 3 was computation of liability in terms of old coins and then conversion and rounding off of the total liability in terms of new coins
To interpret clause 3 in that manner would be to denude it of its true purpose as an interpretation clause and to render it practically nugatory
If sub section 3 is merely intended to serve as determinative of 330 total liability under a transaction the purpose is amply served by sub section 2
The view I have expressed also finds support from a judgment of this Court in Ms Mangalore Ganesh Beedi Works vs The State of Mysore and another1
In that case sales tax was imposed under the Mysore Sales Tax Act 6 of 1948 at the rate of three pies for every rupee of the turnover  On the application of section 14 of the Indian  sales tax leviable under the Mysore Sales Tax Act was computed at the rate of two new coins per rupee of the turnover and a demand for RS
11672 44 was made
The tax payer contended that he was liable to pay Rs 91690 only being the amount of total tax liability computed at the rate of 3 pies per rupee of turnover
He challenged the additional demand by a petition in the High Court of Mysore on the plea that the Act which altered the incidence was a taxing measure and could only be enacted after complying with the provisions of articles 198 199 and 207 of the Constitution relating to money bills and the Mysore Existing Laws Construction of Reference to Values Act 12 of 1957 which gave effect to the amendment made by Act 31 of 1955
dealt with coinage and legal tender and was not within the competence of the State Legislature
In dealing with these contentions this Court summarised the scheme of clauses 12 and 3 of section 14 and observed Sub section 3 provides that all references under any enactment to annas pice or pies have to be construed as reference to the new coin referred to in sub section 1
In other words wherever the old legal tender ie annas pice and pies is mentioned in an enactment it is to be converted into naya Paisas and the naya Paisas are to be substituted in place of the old legal tender calculated in the manner laid down in sub section 2
 The Court rejected the claim of the tax payer that he was liable to pay tax computed at the rate of three pies per 1 1963 Supp 1 SCR 275
331 rupee only
If sub section 3 of section 14 was susceptible of the interpretation submitted on behalf of the State of Uttar Pradesh it was wholly unnecessary to enter upon the question of the vires of the provisions because between the computation of sales tax on a total turnover of Rs 583642225 nPs at 2 naye Paise and at the rate of 3 pies per rupee in the manner suggested there would have resulted no discrepancy at all and the contention of the tax payer that he was liable to pay Rs 91690 had to be accepted
But this Court upheld the claim of the Sales Tax Department that the computation had to be made by substituting two naye Paise in the section of the Mysore Sales Tax Act which imposed liability for payment of tax and the total demand for tax computed on the footing of that substitution was properly made
If the interpretation which is now suggested on behalf of the State be accepted the assessee in Mangalore Ganesh Beddi Works  Case1 was bound to succeed
In the present case by the notification issued on March 31 1956 the liability for payment of sales tax was to be computed at the rate of one anna in a rupee of the turnover
By virtue of section 143 of the Indian  for an anna mentioned in the notification 61 now coins will be substituted
But as the substituted rate involved a frac tion by the process of rounding off at the rate specified in sub section 2 the fraction of new coins will be omitted and the nearest new coins ie six new coins will be deemed to be substituted in the statute
Liability for sales tax after the amendment of the will therefore be at the rate of 6 new coins for every rupee of sale price
ORDER BY COURT In view of the judgment of the majority the appeals we dismissed with costs
1 1963 SUPP
1 SCR 275


Summary:
For the assessment years 1956 57 and 1957 58 the appellant was assessed to sales tax in respect of Vanaspati and oil under the UP Sales Tax Act 1948
By a notification issued on March 31 1956 under section 3 A2 the rate of tax on Vanaspati was fixed at one anna per rupee at the point of sale by the manufacturer
The appellant and section P Bhasin a shareholder of the company filed a writ petition in the High Court challenging the validity of the UP Sales Tax Validation Act 1958 and also prayed for the quashing of the assessment order dated October 15 1960 and the order dated February 1 1961 of the Sales Tax Judge Appeals Meerut in connection with the assessment of tax on the sale of Vanaspati and other articles both on the ground that the sale tax was assessed 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 should have been calculated at the rate of 6 Naya Paisa per rupee and not at the rate of one anna per rupee as laid down in the relevant provisions of the UP Sales Tax Act and the notice issued under its provisions
Dismissing the appeal Held per P B Gajendragadkar CJ M Hidayatullah K C Das Gupta and Raghubar Dayal JJ The High Court was right in construing the provisions of sub section
3 of section 14 of Indian to mean that references to values in any enactment notification rule or order under any enactment or in any contract deed or instrument expressed in old coins should be construed to be references to values expressed in new coins by converting the old values at the rate of16 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 will be at the rate of 6 new coins for every rupee of sale price and not one anna
By the notification issued on March 31 1956 the liability for payment of sales tax was to be computed at the rate of one anna in a rupee of the turnover
By virtue of section 143 for an anna mentioned in the notification 6 14 new coins are to be substituted
As the substituted rate involves a fraction by the process of rounding off at the rate specified in section 142 the fraction of new coins has to be omitted and the nearest new coins ie 6 new coins are to be deemed to be substituted in the statute
J K Jute Mills Co Ltd vs State of Uttar Pradesh   Ram Kishan Sunder Lal vs State of Uttar Pradesh 13 STC 923 315 Ms Mangalore Ganesh Beedi Works vs State of Mysore 1963 Supp 1 SCR 275 referred to