TaxTMI 
TaxTMI 
1962 (9) TMI 43
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1948). The appellant is a firm registered under the Mysore Sales Tax Act and was assessed to sales tax on a return of turnover Rs. 58,36,422.26 nPs. and the tax imposed on that sum at .02 nPs. per rupee was Rs. 1,16,728.44 nPs. The grievance of the appellant was that according to the Mysore Sales Tax Act he was liable to sales tax at the rate of 3 pies for every rupee on the turnover and calculated on that basis the amount of tax would be Rs. 91,690, but after the amendment of the Indian Coinage Act (Act 3 of 1906) by the Amending Act 31 of 1955 the rate of sales tax which was levied on the appellant's beedies was .02 Ps. per rupee and thus the appellant was called upon to pay Rs. 25,038 more than he would have paid if he had been charged ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uch single coin or number of such coins tendered at one transaction, to the nearest new coin, or where the new coin above and the new coin below are equally near, to the new coin below. (3) All references in any enactment or in any notification, rule or order under any enactment or in any contract, deed or other instrument to any value expressed in annas, pice and pies shall be construed as references to that value expressed in new coins referred to in sub-section (1) converted thereto at the rate specified in sub-section (2)." By sub-sections (1) and (2) of section 14 therefore one rupee is divided into a hundred naya Paisas, the old legal tender of sixteen annas or sixty-four pice or one hundred and ninety-two pies to a rupee remains le....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at the rate specified in subsection (2) of section 14 of that Act. Two objections were taken to the validity of the tax: Firstly it was argued that by the substitution of 2 naya Paisas in place of 3 pies there was a change in the tax exigible by the Mysore Sales Tax Act and this could only be done if that enactment had been passed according to the procedure for Money Bills in the manner provided by Articles 198, 199 and 207 of the Constitution and as no such Money Bill was introduced or passed for the enhancement of the tax, the tax was illegal and invalid. In our opinion by substitution of new coinage, i.e., naya Paisas in place of annas, pice and pies, no enhancement of tax was enacted but it was merely a substitution of one coinage by a....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... not the effect of changing 3 pies into .02 nPs. in the rate of tax leviable under the Mysore Sales Tax Act, the Mysore Existing Laws (Construction of References to Values) Act, 1957, which has been set out above has made a provision for charging the tax in terms of naya Paisas instead of pies. Therefore the levy of tax in terms of naya Paisas is not unconstitutional nor is it a taxing measure but it deals merely with the conversion of the old coinage into new coinage. It was then argued that because of the order of the High Court in a previous petition under Article 226 whereby the provisional assessment was set aside the principle of res judicata applied and a different decision could not be given in the present petition which was subseq....