TaxTMI 
TaxTMI 
1966 (10) TMI 121
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....anara within the new State of Mysore. The respondents had been dealing mainly in areca. Their principals in areca trade were residents of Malabar District and Kasargod Taluk in the former State of Madras. Every year the respondents used to take out licences under section 8 of the Madras General Sales Tax Act, 1939 (Madras Act No. 9 of 1939) (hereinafter referred to as the Act). So, for the year 1956-57, the respondents took out licences in respect of their dealings as com- mission agents. On 1st November, 1956, the States Reorganisation Act (Act No. 37 of 1956) came into force and as a result of that Act, some of the territories comprised in the former State of Madras became a part of the present Mysore State and some parts of the old Madras State became a part of the new Kerala State. Some of the principals of the respondents were residing either at Kasargod or in places in the former District of Malabar. After the States reorganisation all those principals who were residing in Kasargod Taluk which before the reorganisation was a part of South Canara District, or in the District of Malabar became "non-resident" principals within the meaning of the expression in section 14-A of the....
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.... follows: "Every person who........................................................... (f) for an agreed commission or brokerage, buys and/or sells goods of any description on behalf of known principals shall, if he desires to avail himself of the exemption provided in sections 5 and 8 or of the concession of taxation only at a single point or of taxation at the rate specified in section 5, submit an application in Form I for a licence in respect of each of his places of business to the authority specified in sub-rule (2) so as to reach him not later than the 30th day of April of the year for which the licence is applied for: Provided that in the case of a business which is commenced in the course of a financial year, the dealer shall submit the application for the licence to such authority so as to reach him not later than thirty days from the date of commencement of his business: Provided further that, where the exemption or concession aforesaid was conferred for the first time by the Madras General Sales Tax (Amendment) Act, 1947, and the dealer had commenced business before the 1st January, 1948, he shall submit the application for the licence not later than ....
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....e minimum specified in section 3, sub-section (3), he shall be entitled to have the amount of the tax or taxes paid by his agent refunded to him on application made to the assessing authority concerned, or where more than one such authority is concerned, to such one of the authorities as may be authorised in this behalf by the State Government by general or special order. (v) Such application shall be made within twelve months from the end of the year in which the payment was made by or on behalf of the non-resident of the tax or taxes or any part thereof." "The State" is defined in section 2(g) of the Act as to mean the State of Madras. Clause 4 of the Mysore Adaptation of Laws Order, 1956, issued under section 120 of the States Reorganisation Act, 1956, provides as follows: "Whenever an expression mentioned in column 2 of the Table hereunder printed occurs (otherwise than in a title or preamble, or in a citation or description of an enactment) in an existing law in force in the area mentioned in column 1, whether mentioned in the Schedule to this Order or not, then, except where the subject or context otherwise requires and unless that expression is by this Order expr....
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....ion, the word "Madras State" in clause 4 of Form V should be interpreted in the context of clause 4 of the Mysore Adaptation of Laws Order and the adapted provisions of the Act and the Rules framed thereunder. It is not disputed on behalf of the respondents that Form V is a part of the Rules framed and therefore it is "law" as contemplated in section 120 of the States Reorganisation Act, 1956, and that in clause 4 of Form V we must read the words "Madras Area" in place of the word "State". But the argument was stressed that the word "State" in the licence already issued to the respondents cannot be construed in that manner. It was said that the issuing of licences was an executive act and cannot tantamount to a "law" within the meaning of the Mysore Adaptation of Laws Order. We shall assume that this argument is correct. Even on that assumption the appellant must succeed for as a matter of principle the expression "Madras State" in clause 4 of Form V of the licence must be interpreted in the context of clause 4 of the Mysore Adaptation of Laws Order and in the context of the change of the provisions of the Act and the Rules after the 1st November, 1956. It follows, therefore, that ....