Directory reading of 'shall' in sales tax collection provision preserves principal's liability for additional tax.

Section 11 of the Andhra Pradesh General Sales Tax Act was analysed as a collection machinery provision rather than a provision displacing the principal's underlying liability for additional tax under section 5-A. The statutory context, including the proviso allowing recovery from the principal instead of the agent and the scheme for the agent to recover tax from the principal, indicated that the object was workable collection and prevention of tax leakage. The word "shall" was therefore treated as directory, not mandatory. On that basis, the principal remained assessable for additional tax, subject to verification of any tax already paid by the agent and corresponding revision if required.

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Issues: Whether, under section 11 of the Andhra Pradesh General Sales Tax Act, the word "shall" is mandatory so as to require assessment, levy and collection of additional tax under section 5-A only from the agent, thereby preventing assessment of the principal.

Analysis: The tax under section 5-A was treated as being of the same character as the tax under section 5, and section 11 was understood as a machinery provision for collection, not as one that displaced the principal's underlying liability. The language of section 11, including the proviso permitting recovery from the principal instead of the agent and the scheme allowing the agent to recover tax from the principal, showed that the provision was intended to make collection workable and not to exonerate the principal. Applying the settled rules that the word "shall" may be directory when the statutory context so requires, the provision was read in light of the principal's primary liability and the object of preventing tax leakage.

Conclusion: The word "shall" in section 11 was held to be directory and not mandatory. The principal could be assessed for additional tax under section 5-A, subject to verification of any tax already paid by the agent and consequential revision, if necessary.

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