Case: Ashok Service Centre &amp; Another Etc Vs. State Of Orissa

definition of the expression gross turnover in section 2 (dd) of the Principal Act does not present any insurmountable difficulty as the words defined in section 2 of the Principal Act have to be given the meaning as indicated in that section unless there is anything repugnant in the subject or context. In view of the foregoing, section 3 (1) of the Act has to be read as:"Every dealer (who is liable to pay tax under the Principal Act) shall, in addition to the tax payable by him for a year under the said Act, be liable to pay additional tax at such rate not exceeding one percent of his gross turnover (which is taxable under the Principal Act) for that year, as may be notified from time to time by the State Government.Provided .........................................Provided .........................................If section 3 (1) is so read there would not be any anomaly but on the other hand it would effectuate the intention of the State Legislature. We are aware of the principal that a statute has to be interpreted according to the words used therein and if the word used therein are clear it is not open to the Court to go in search of t he intention of the Legislature and to arrive at a meaning different from what the words of the statute convey. When the Act is read as a whole it becomes inevitable that it bas to be read together with the Principal Act. Craieson Statute Law (7th Edn ) says at page 223 that where the later of two Acts provides that the Who are to be read together every part of each Act must be construed as if the two Acts had been one, unless their is some manifest discrepancy making it necessary to hold that the later Act has to some extent modified the provisions of the earlier Act. When section 3 (1) of the Act read in the light of subsection (2) thereof, section 8 of the Principal Act which prescribes a single point levy becomes immediately attracted. It was, however, argued on behalf of the Department that since section 8 of the Principal Act opened with The words notwithstanding anything to the contrary in this Act, the operation of section 8 should be confined to the tax payable under the Principal Act and could not be extended to the additional tax payable under the Act. We do not find any merit in this submission, since the words this Act were used in section 8 because when the Principal Act was enacted section 8 could apply only to the liability under the Principal Act. Now by reason of section 3 (2) of the Act, section 8 has been made also applicable to the levy, assessment and collection of the additional tax under the Act. If we accept the argument of the Department even section 13 of the Principal Act which provides for the machinery for ff recovery of tax and penalty would become unavailable for collecting the additional tax under the Act as section 13 also uses the words tax payable under this Act. Likewise, many other provisions of the Principal Act which are necessary for making the levy under the Act effective will become inapplicable. The above contention has therefore to be rejected.Lastly it was contended on behalf of the State Government that section 3 (1) of the Act should be construed as a complete and self-contained code on the charge created by the Act in view of the second proviso contained in it which conferred powers o f exemption OD the State Government. That proviso only empowers the State Government to exempt certain dealers or transactions pertaining to certain goods from the levy of additional tax. It does not in any way curtail the effect of sub-section (2) of section 3 of the Act which forms an integral part of the charging section. Consequently any exemption granted under section 6 and section 7 of the Principal Act will also be applicable in the case of levy of additional tax under the Act .8. In view of the foregoing, we hold that any dealer is not liable to pay tax under the Principal Act either by reason of his not having sufficient gross turnover or by reason of exemption given under section 7 of the Principal Act, is no t liable to pay additional tax under the Act. If a dealer is exempted by the State Government under the second proviso to section 3(1) of the Act he is also not liable to pay the additional tax under the Act. If the turnover of a dealer relating to an y sales or purchases of goods is exempted under section 6 of the principal Act, such turnover cannot be subjected to any levy of additional tax under the Act by virtue of section 3 (2) of the Act. The Government Notifications S.R.O.. No. 410/79 dated March 23, 1979 issued under the second proviso to section 3 (1) of the Act exempting the turnover relating to goods whose turnover is exempted from payment of tax under section 6 of the Principal Act from payment of additional tax under the Act is, therefore, redundant. The turnover in respect of goods whose sales or purchases are not taxable under the Principal Act in the hands of any dealer by reason of section 8 of the Principal Act is not liable to the payment of addition al sales tax under the Act. The turnover in respect of sales and purchases of declared goods is not taxable under the Act by reason of the first proviso to section 3 (1) of the Act. Any other turnover which is exempted by the State Government under the second proviso to section 3 (1) of the Act is also not taxable under the Act. The levy of the additional tax on the gross turnover of a dealer under section 3 of the Act is subject to these conclusions.In the result the appeals succeed. Th

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]If section 3 (1) is so read there would not be any anomaly but on the other hand it would effectuate the intention of the State Legislature. We are aware of the principal that a statute has to be interpreted according to the words used therein and if the word used therein are clear it is not open to the Court to go in search of t he intention of the Legislature and to arrive at a meaning different from what the words of the statute convey. When the Act is read as a whole it becomes inevitable that it bas to be read together with the Principal Act. Craieson Statute Law (7th Edn ) says at page 223 that where the later of two Acts provides that the Who are to be read together every part of each Act must be construed as if the two Acts had been one, unless their is some manifest discrepancy making it necessary to hold that the later Act has to some extent modified the provisions of the earlier Act. When section 3 (1) of the Act read in the light of subsection (2) thereof, section 8 of the Principal Act which prescribes a single point levy becomes immediately attracted. It was, however, argued on behalf of the Department that since section 8 of the Principal Act opened with The words notwithstanding anything to the contrary in this Act, the operation of section 8 should be confined to the tax payable under the Principal Act and could not be extended to the additional tax payable under the Act. We do not find any merit in this submission, since the words this Act were used in section 8 because when the Principal Act was enacted section 8 could apply only to the liability under the Principal Act. Now by reason of section 3 (2) of the Act, section 8 has been made also applicable to the levy, assessment and collection of the additional tax under the Act. If we accept the argument of the Department even section 13 of the Principal Act which provides for the machinery for ff recovery of tax and penalty would become unavailable for collecting the additional tax under the Act as section 13 also uses the words tax payable under this Act. Likewise, many other provisions of the Principal Act which are necessary for making the levy under the Act effective will become inapplicable. The above contention has therefore to be rejected.Lastly it was contended on behalf of the State Government that section 3 (1) of the Act should be construed as a complete and self-contained code on the charge created by the Act in view of the second proviso contained in it which conferred powers o f exemption OD the State Government. That proviso only empowers the State Government to exempt certain dealers or transactions pertaining to certain goods from the levy of additional tax. It does not in any way curtail the effect of sub-section (2) of section 3 of the Act which forms an integral part of the charging section. Consequently any exemption granted under section 6 and section 7 of the Principal Act will also be applicable in the case of levy of additional tax under the Actview of the foregoing, we hold that any dealer is not liable to pay tax under the Principal Act either by reason of his not having sufficient gross turnover or by reason of exemption given under section 7 of the Principal Act, is no t liable to pay additional tax under the Act. If a dealer is exempted by the State Government under the second proviso to section 3(1) of the Act he is also not liable to pay the additional tax under the Act. If the turnover of a dealer relating to an y sales or purchases of goods is exempted under section 6 of the principal Act, such turnover cannot be subjected to any levy of additional tax under the Act by virtue of section 3 (2) of the Act. The Government Notifications S.R.O.. No. 410/79 dated March 23, 1979 issued under the second proviso to section 3 (1) of the Act exempting the turnover relating to goods whose turnover is exempted from payment of tax under section 6 of the Principal Act from payment of additional tax under the Act is, therefore, redundant. The turnover in respect of goods whose sales or purchases are not taxable under the Principal Act in the hands of any dealer by reason of section 8 of the Principal Act is not liable to the payment of addition al sales tax under the Act. The turnover in respect of sales and purchases of declared goods is not taxable under the Act by reason of the first proviso to section 3 (1) of the Act. Any other turnover which is exempted by the State Government under the second proviso to section 3 (1) of the Act is also not taxable under the Act. The levy of the additional tax on the gross turnover of a dealer under section 3 of the Act is subject to these conclusions.In the result the appeals succeed. The judgment of the High Court in each of these cases is set aside. It is hereby declared that the additional tax under the Act can be levied and collected under section 3 of the Act in accordance with our conclusions set out in the previous paragraph