Case: M/s. Mangalore Ganesh Bedi Works Vs. The State of Mysore &amp; Another

2. The appellant is a firm registered under the Mysore Sales Tax Act and was assessed to sales tax on a return of over Rs. 58,36,422.26 Nps and the tax imposed on that sum at.02 Nps per rupee was Rs. 1,16,728.44 Nps. The grievance of the appellant was that according to the Mysore Sales Tax Act he was liable to sales tax the rate of 3 pies for every rupee on the turnover and calculated on that basis the amount of tax would be Rs. 91, 690/- but after the amendment of the India Coinage Act (Act 3 of 1906) by the Amending Act 31 of 1955 the rate of sales tax which was levied on the appellants Beedis was. 02 Nps per rupee and thus the appellant was called upon to Pay Rs. 25,038/- more than he would have paid if he had been charged at the rate of 3 pies 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 Art. 265 of the Constitution and was therefore void and illegal.

Reasoning:
In our opinion by substitution of new coinage i.e. naya Paisas in place of annas, pice and pies no enhancement of tax was enacted but it was merely a substitution of one coinage by another of equivalent value. Even assuming that it is a taxing measure its validity cannot be challenged on the ground that it offends Arts. 197 to 199 and the procedure laid down in Arts. 202 of the Constitution. Article 212 prohibits the validity of any proceedings in a legislature of a State from being called in question on the ground of any alleged irregularity of procedure and Art. 255 lays down that requirements as to recommendation and previous sanction are to he regarded as matters of procedure onlyIt is unnecessary to decide this question because if the Central Act. i. e. the Indian Coinage Act has not the effect of changing 3 pies into.02 nps in the rate of tax leviable under the Mysore Sales Tax Act, the Mysore Existing Laws (Construction of References to Values) Act, 1957 , which has been set out above has made a provision for charging the tax in terms of naya paisas instead of pies. Therefore the levy of tax in terms of naya paisas is not unconstitutional nor is it a taxing measure but it deals merely with the conversion of the old coinage into new coinageIn our opinion there is no merit in that submission. The previous petition upon which the appellant relies was to set aside the provisional assessment and it was set aside in the following language :"Read Memo dated 7-6-1958 by the Advocate General and Advocate for respondent, stating that the respondents do not oppose the writ petition being allowed and that the provisional assessment may be set aside."9. The previous decision setting aside the provisional assessment does not indicate what issues were raised and decided and there is no indication that the question now raised before us was before the Court. That decision cannot therefore operate as res judicata.