K KANNAIAH Vs. DEPUTY COMMERCIAL TAX OFFICER GUNTUR
HIGH COURT OF ANDHRA PRADESH
DEPUTY COMMERCIAL TAX OFFICER, GUNTUR
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Chandra Reddy, C.J. -
(1.) The proper interpretation of section 41 of the Andhra
Pradesh General Sales Tax Act, 1957 (VI of 1957) is involved in this enquiry.
This writ petition relates to the assessment years 1956-57. The petitioner,,
who is a dealer in tobacco, was assessed to tax by the proper Commercial Tax
Officer by an order dated 27th March, 1959 and a sum of Rs. 9,962-2-5 was demanded
as the tax due and payable by him. It is to quash this order of assessment that
the writ petition was filed under Article 226 of the Constitution, contending that
it was beyond the competence of the department to make an assessment in respect
of purchases made during the period of the operation of the Madras General Sales
Tax Act after it had ceased to be in force.
(2.) Before we deal with the controversy relating to the construction of section 41,
we have to read that section. It postulates :
"(1) The Madras General Sales Tax Act, 1939 (Madras Act IX of 1939), the Hyderabad
General Sales Tax Act, 1950 (Hyderabad Act XVI of 1950), the Madras Tobacco (Taxation of Sales
and Registration) Act, 1953 (Madras Act IV of 1953), the Andhra General Purchase Tax Act, 1956
(Andhra Act XIII of 1956), and section 21-A of the Madras Prohibition Act, 1937 (Madras Act X of
1937) are hereby repealed :
Provided that such repeal shall not affect the previous operation of the said Acts or section
or any right, title, obligation or liability already acquired, accrued or incurred thereunder, and subject
thereto, anything done or any action taken (including any appointment, notification, notice, order,
rule, form, regulation, certificate, licence or permit) in the exercise of any power conferred by or under
the said Acts or section shall be deemed to have been done or taken in the exercise of the powers
conferred by or under this Act, as if this Act were in force on the date on which such thing was done or
action was taken ; and all arrears of tax and other amounts due at the commencement of this Act
may be recovered as if they had accrued under this Act."
(3.) We need not quote sub-section (2), as it is not material for our present purpose.
We are here mainly concerned with the import of the expression " obligation or
liability already acquired, accrued or incurred thereunder."
The argument pressed upon us by Sri P.A. Chowdary, learned Counsel for the
petitioner, is that, the relevant clause has reference only to the tax ascertained and
levied and does not take in chargeability to tax.;
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