Mitter, J. - (1.) All these four appeals are by certificate granted by the High Court of Kerala. Three of them arise out of a common judgment in T. R. C. Nos. 22 and 23 of 1966 and Original Petition No. 1046 of 1966. Appeal No. 175 of 1969 is from the judgment in Writ Appeal No. 243 of 1967 arising out of Original Petition No. 1723 of 1965.
(2.) The respondent, a private limited company having its principal place of business at Mattancherry originally in the State of Cochin but now in the State of Kerala, was assessed by the Sales-tax Officers, Special Circle, Mattancherry, to sales-tax for the years 1960-61 and 1961-62 on turnovers which included "works contracts" executed by the respondent.' Before the taxing authorities the contention raised by the respondent was that the turnover on these contracts could not be subject to sales tax. Tax Revision Cases 22 and 23 of 1966 were filed in the High Court under Section 41 of the Kerala General Sales Tax Act, 1963 to revise the decision of the Tribunal. These were heard by the High Court along with the Original Petition No. 1046 of 1966. Civil Appeal No. 175 of 1969 relates to the assessment for the year 1959-60 by which a turnover of Rs. 6,09,954-98 relating to works contracts was included. The Tribunal upheld the levy of sales tax on works contracts relating to the period 26th January 1960 to March 31, 1960 and remanded the case. The respondent thereupon filed O. P. No. 1723 of 1965. A single Judge of the High Court quashed the impugned order and this was confirmed in Writ Appeal No. 243 of 1967. The State, the Kerala Sales-tax Appellate Tribunal and the Inspecting Assistant Commissioner of Agricultural Income-tax and Sales-tax, Ernakulam have come up in appeals to this Court and the common respondent is the company.
(3.) The central question in all these appeals is, whether the provisions of the General Sales Tax Act XI of 1125 (corresponding to Christian era 1949) imposing a tax on works contracts were enforceable in the State of Kerala subsequent to January 26,1960. The history behind the present law of sales tax on this point in the State of Kerala is as follows. The territory of the said State is composed inter alia of major parts of the erstwhile States of Travancore and Cochin which were separate sovereign States having plenary powers of taxation. Under the Sales Tax Act of both these States tax was eligible on works contracts. The Cochin Act was known as the Cochin General Sales Tax Act XV of 1121 (Christian era 1945) as amended by Act V of l124 (Christian era 1948 AD) . The Travancore Act was known as the Travancore General Sales Tax Act XVIII of l124 (corresponding to 1948) . As a result of the merger of the two States, the State of Travancore-Cochin with a common legislature emerged as a Part B State under the Constitution of India as originally in force. The said legislature enacted the Travancore-Cochin General Sales Tax Act XI of 1125 (corresponding to 1949 A.D.) imposing sales tax on works contracts. The Act was published in the local gazette on January 17, 1950 but under the provisions of Section 1 (3) thereof it came into force on May 30, 1950, i.e., after the date of the promulgation of the Constitution. The last mentioned Act repealed the Acts of the Travancore and Cochin States but enacted identical provisions of taxation regarding works contracts. The State of Kerala came into existence as a result of the States Reorganisation Act as from 1st November, 1956. The Kerala Legislature passed the Travancore Cochin General Sales Tax Amendment Act, 1957 amending the name of the Travancore Cochin Act XI of 1125 and extending its operation to the whole of the State of Kerala. This Act came into force on October 1, 1957. The said Legislature also passed the Kerala Surcharge on Taxes Act, 1957 (12 of 1957) for levy of surcharge on various taxes including those on sales or purchase of goods etc. This came into force on 1st September, 1957. The General Sales Tax Act (XI of 1125) was replaced by the Kerala General Sales Tax Act (XV of 1963) which came into force on April 1, 1963. There was no provision in this Act for imposition of tax on works contracts.;