- (1.) The respondent is a dealer in manganese ore having its head office at Nagpur. Before the formation of the new State of Madhya Pradesh on 1/11/1956, the respondent was carrying on business at Nagpur (styled as head office and main place of business) and at Gondia (styled as additional place of business). Prior to 1/11/1956, both Nagpur and Gondia were within the then State of Madhya Pradesh. Apart from Nagpur and Gondia, prior to 1/11/1956, the respondent was also working the manganese mines in Wara Seoni and Chhindwara within the then State of Madhya Pradesh and was carrying on business at the said two places. The respondent held a registration certificate under the C. P. and Berar Sales Tax Act, 1947 (C. P. and Berar Act No. 21 of 1947) (hereinafter called "the Act"). In the registration certificate Nagpur was shown as the main place of business and Gondia as an additional place of business. But in the registration certificate Wara Seoni and Chhindwara were not shown as additional places of business of the respondent. As a result of the reorganisation of States on 1/11/1956, Nagpur was incorporated within the State of Bombay. The respondent became a registered dealer in the new State of Madhya Pradesh on 8/03/1958. The Sales Tax Officer, Chhindwara, assessed the respondent for the period 1/11/1956, to 3/07/1958, under section 19 (4) and section 17 (3) of the Act read with section 11 (4) and section 10 (3) of the central Provinces and Berar Sales Tax Act, 1947. The tax was assessed at Rs. 27,697.28 and a penalty of Rs. 3,000. 00 was imposed on the respondent under section 17 (3) of the Act. The Sales Tax Officer took the view that as a result of the reorganisation of the States, the respondent became liable to pay tax for the above assessment period as he was doing business in the new State of Madhya Pradesh and continuedto be a registered dealer. On appeal, the Appellate Assistant Commissioner affirmed the view of the Sales Tax Officer and dismissed the appeal. The respondent took the matter in further appeal to the Board of Revenue, Madhya Pradeah, at Gwalior which by its order dated 15/04/1964, held that the respondent could not be treated as a registered dealer in two States by virtue of the same registration certificate and if he had not obtained a certificate in the new State of Madhya Pradesh he should have been treated as a mere dealer and not as a registered dealer. Consequently, the Board of Revenue remanded the case to the Sales Tax Officer, Chhindwara, for a fresh assessment. Thereafter, at the instance of the appellant the Board of Revenue referred the following question of law to the High court of Madhya Pradesh : "whether a registered dealer, who had his head office at Nagpur, under the C. P. and Berar Sales Tax Act, 1947, continued to be a registered dealer in Madhya Pradesh, formed on 1/11/1956, after the reorganisation of the States if his business was partly carried on in the area which went to Maharashtra State and partly in the area which formed part of the new Madhya Pradesh - By its judgment dated 27/04/1966, the High court answered the question in favour of the respondent holding that if the registered dealer carried on business in places not disclosed in its registration certificate, he would have to be treated as an unregistered dealer vis-a-vis those places, and, therefore, the respondent could not be treated as a registered dealer with respect to the area comprised in the new State of Madhya Pradesh as no place of business from that area was specified in its certificate.
(2.) The present appeal is brought by special leave from the judgment of the Madhya Pradesh High court dated 27/04/1966, in Miscellaneous Civil Case No. 288 of 1965. It is necessary to reproduce the relevant statutory provisions at this stage. Section 119 of the States Reorganisation Act, 1956 (37 of 1956) states: "The provisions of Part II shall not be deemed to have effected any change in the territories to which any law in force immediately before the appointed day extends or applies, and territorial references in any such law to an existing State shall, until otherwise provided by a competent Legislature or other competent authority, be construed as meaning the territories within that State immediately before the appointed day. "section 121 provides as follows : "Notwithstanding that no provision or insufficient provision has been made under section 120 for the adaptation of a law made before the appointed day, any court, tribunal or authority required or empowered to enforce such law may, for the purpose of facilitating its application in relation to any State formed or territorially altered by the provisions of Part II, construe the law in such manner, without affecting the substance, as may be necessary or proper in regard to the matter before the court, tribunal or authority. "
(3.) Section 2 (c) of the central Provinces and Berar Sales Tax Act, 1947 (21 of 1947) , defines a "dealer" as meaning "any person who, whether as principal or agent, carries on in Madhya Pradesh the business of selling or supplying goods, whether for commission, remuneration or otherwise. . " Section 2 (f) defines a "registered dealer" to mean a dealer registered under the Act. Section 4 (1) states : "4.(L) (a) In Madhya Pradesh excluding the merged territories every dealer whose turnover during the year preceding the commencement of this Act exceeded the limits specified in Ss. (5) shall be liable to pay tax in accordance with the provisions of this Act on all sales effected after the commencement of this Act. (b) In the merged territories every dealer whose turnover during the year preceding the commencement of this Act exceeded the limits specified in Ss. (5) shall be liable to pay tax in accordance with the provisions of this Act on all sales effected on or after the 1/04/1949;. . " Section 8 provides for registration of dealers and states : "8. (1) No dealer shall, while being liable to pay tax under this Act, carry on business as a dealer unless he has been registered as such and possesses a registration certificate :. . (2) Every dealer required by Ss. (1) to be registered shall make application in that behalf in the prescribed manner to the prescribed authority. (3) If the said authority is satisfied that an application for registration is in order, it shall in accordance with such rules as may be made under this Act, register the applicant and grant him a certificate of registration in the prescribed form which, in the case of a registered dealer who manufactures any goods for purposes of sale by actual delivery in Madhya Pradesh for the purpose of consumption in that State shall specify the raw materials which are intended to be used by him in the manufacture of such goods. (4) The Commissioner may amend any certificate of registration in accordance with information received under section 17 or otherwise. . "section 17 enacts: "If any registered dealer or other dealer who is required to furnish returns under Ss. (1) of section 10, (a) sells or otherwise disposes of his business or any part of his business or any place of his business or effects or comes to know of any other change in the ownership of the business, or (b) discontinues his business or changes his place of business or opens a new place of business, or (c) changes the name or nature of his business, he or if he dies, his legal representative shall, within the prescribed time, inform the prescribed authority accordingly. ";