# HARDEODASJAGANNATH v. STATE OF ASSAM & ORS

- **Citation:** [1969] 2 S.C.R. 261
- **Court:** Supreme Court of India
- **Decided:** 1968-09-27
- **Case number:** Civil Appeals Nos. 2403 & 2404 of 1966
- **Bench:** J. C. Shah, V. Ramaswami, G. K. Mitter, K. S. Jiegde, A. N. Grover
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/hardeodasjagannath-v-state-of-assam-ors-4494
- **Pages:** 11

## Headnote

Extra Provincial Jurisdiction Act (47 of 1947), ss. 4 and 6-Jurisdiction of Central Government to extend State
Act to former
Indion
Princely States--Answers submitted by Central Government to questions
by Court-Conclusive evidence.
Assam Sales Tax Act (17 of 1947) as amended by Act 6 of 1958
s. 30---Whether properly extended to Shillong Administered Area-Appeal
by ass.essee without paying tax or penalty-Prayer for
acceptance of
security-Power of Appellate Authorit.y to accept security in lieu of cash.
By a notification dated April 15, 1948 the Government of India extended the Assam Sales Tax Act, 1947 to the Administered Area in
Shillong under s. 4 of the Extra Provincial Jurisdiction Act, 1947. The
instrument of accession by which the administration of the Indian Princely
State of Mylliem in the Shillong Administered Area was transferred to
the Central Government was accepted by the Governor-General of India
on August 17, 1948. Under s. 30 of the Assam Sales Tax Act, as amended by Act 6 of 1958., a dealer may appeal against an order of assessment
or penalty. but the appeal shall not be entertained by the appellate authority unless he was satisfied tlrat the amount of tax assessed or penalty
levied, if not otherwise directed by him, had been paid.
The sales tax authorities assessed the appellant to sales-tax and imposed
penalties for various periods. Though some of the assessment periods
were before April 1, 1958 when the Amending Act 6 of 1958 came into
force, all the orders of assessment and pen.alty were passed after April
1, 1958. The appellant did not pay the tax assessed or the pen.ally but
filed petitions along with its appeals praying that it may be alk•wed to
furnish security in lieu of payment of cash on account of its fina.ucial
condition. The petitions were rejected and the appeals were con;equently
dismissed. Writ petitions filed by the appellant in the High Court, to
quash the orders of dismissal of the appeals, were also dismissed.
In appeal to this Court, it was contended that; (1) After August 15,
1947 the State of Mylliem became an independent State and •ince the
Central Government could exercise extra provincial jurisdiction under the
Extra Provincial Jurisdiction Act, only if the CentraJ Government exercised such jurisdiction under a treaty. agreement, or by other
lawful
means, the Central Government in the present case, could not exercise
such jurisdiction till August 17, 1948 when the instrument of acccs.icn
was ac,cepted; and therefore, the notification dated April 15 1948 was
not validly issued and hence the Assam sales Tax Act was n~t operative
in the Shillong Administered Area; (2) As the Amending Act of 1958
came into force on April 1, 1958 it could not be given retrospective
effect so as. !o apply to as~ssm~nt periods anterior to that date; and ( 3)
The authonties 'Yere not nght m holdmg that there was no provision in
the Act empowenng them to accept security in lieu of cash payment.
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SUPREME COURT REPORTS
[1969] 2 S.C.R.
As the material on the record was not sufficient to enable the Court
to determine the question whether the Dominion of India was enti•led to
exercise extra provincial jurisdiction over the Shillong Administered Area
on April 15, 1948 this Court under s. 6 of the Extra Provincial Jurisdiction Ac,, forwarded to the Union Go¥ernment the questions : (a) whether
the Dominion of India exercised such jurisdiction. on April 15, 1948, and
(b) whether the Dominion of India had such jurisdiction to extend the
Assam Sales Tax Act to the Area.
After receiving the answers,
HELD : ( 1) The
answers submitted by
the Union
Government
showed that prior to April 15, 1948, the British Government had exercised jurisdiction over the Area under the Indian (Foreign Jurisdiction)
Order-in-Council, 1902, as amended by the Order-in-Council of 1937
that on the withdrawal of British rule the jurisdiction continued to be
exercised with the consent of the Siem (ruler) of Mylliem State by the
Dominion of India

## Text

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HARDEODASJAGANNATH
v.
STATE OF ASSAM & ORS.
September 27, 1968
[J. C. SHAH, V. RAMASWAMI, G. K. MITTER, K. S. JIEGDE AND
A. N. GROVER, JJ.]
Extra Provincial Jurisdiction Act (47 of 1947), ss. 4 and 6-Jurisdiction of Central Government to extend State
Act to former
Indion
Princely States--Answers submitted by Central Government to questions
by Court-Conclusive evidence.
Assam Sales Tax Act (17 of 1947) as amended by Act 6 of 1958
s. 30---Whether properly extended to Shillong Administered Area-Appeal
by ass.essee without paying tax or penalty-Prayer for
acceptance of
security-Power of Appellate Authorit.y to accept security in lieu of cash.
By a notification dated April 15, 1948 the Government of India extended the Assam Sales Tax Act, 1947 to the Administered Area in
Shillong under s. 4 of the Extra Provincial Jurisdiction Act, 1947. The
instrument of accession by which the administration of the Indian Princely
State of Mylliem in the Shillong Administered Area was transferred to
the Central Government was accepted by the Governor-General of India
on August 17, 1948. Under s. 30 of the Assam Sales Tax Act, as amended by Act 6 of 1958., a dealer may appeal against an order of assessment
or penalty. but the appeal shall not be entertained by the appellate authority unless he was satisfied tlrat the amount of tax assessed or penalty
levied, if not otherwise directed by him, had been paid.
The sales tax authorities assessed the appellant to sales-tax and imposed
penalties for various periods. Though some of the assessment periods
were before April 1, 1958 when the Amending Act 6 of 1958 came into
force, all the orders of assessment and pen.alty were passed after April
1, 1958. The appellant did not pay the tax assessed or the pen.ally but
filed petitions along with its appeals praying that it may be alk•wed to
furnish security in lieu of payment of cash on account of its fina.ucial
condition. The petitions were rejected and the appeals were con;equently
dismissed. Writ petitions filed by the appellant in the High Court, to
quash the orders of dismissal of the appeals, were also dismissed.
In appeal to this Court, it was contended that; (1) After August 15,
1947 the State of Mylliem became an independent State and •ince the
Central Government could exercise extra provincial jurisdiction under the
Extra Provincial Jurisdiction Act, only if the CentraJ Government exercised such jurisdiction under a treaty. agreement, or by other
lawful
means, the Central Government in the present case, could not exercise
such jurisdiction till August 17, 1948 when the instrument of acccs.icn
was ac,cepted; and therefore, the notification dated April 15 1948 was
not validly issued and hence the Assam sales Tax Act was n~t operative
in the Shillong Administered Area; (2) As the Amending Act of 1958
came into force on April 1, 1958 it could not be given retrospective
effect so as. !o apply to as~ssm~nt periods anterior to that date; and ( 3)
The authonties 'Yere not nght m holdmg that there was no provision in
the Act empowenng them to accept security in lieu of cash payment.
262
SUPREME COURT REPORTS
[1969] 2 S.C.R.
As the material on the record was not sufficient to enable the Court
to determine the question whether the Dominion of India was enti•led to
exercise extra provincial jurisdiction over the Shillong Administered Area
on April 15, 1948 this Court under s. 6 of the Extra Provincial Jurisdiction Ac,, forwarded to the Union Go¥ernment the questions : (a) whether
the Dominion of India exercised such jurisdiction. on April 15, 1948, and
(b) whether the Dominion of India had such jurisdiction to extend the
Assam Sales Tax Act to the Area.
After receiving the answers,
HELD : ( 1) The
answers submitted by
the Union
Government
showed that prior to April 15, 1948, the British Government had exercised jurisdiction over the Area under the Indian (Foreign Jurisdiction)
Order-in-Council, 1902, as amended by the Order-in-Council of 1937
that on the withdrawal of British rule the jurisdiction continued to be
exercised with the consent of the Siem (ruler) of Mylliem State by the
Dominion of India, that the jurisdiction was retained thereafter by the
instrument of accession signed by the Siem, and that the exercise of
the jurisdiction by the British Government and the Dominion of India
several Acts were extended to the Shillong Administered Area. Since
under s. 6(2) of the Extra Provincial Jurisdiction Act the answer of the
Central Government is conclusive
evidence of the matter therein the
Union Government was entitled' to exercise such jurisdiction over the
Shillong Administered Area on April 15, 1948 and therefore, the Assam
Sales Tax Act was properly extended to the Area. [269 F-H, 270 B-C]
(2) The assessments for periods anterior to April 1, 1958 were completed after the Amending Act came into force and the appeals were also
filed thereafter.
Therefore the Amending Act of 1958 was applicable
to the appeals before the appellate authority and was not given. retrospective effect. [271 C-D]
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( 3) The expression 'otherwise directed' only means that the appellate
authority can ask the assessee to deposit a portion of the1 amount and not
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the whole but the section gives no power to the appellate authority to
permit the assessee1 to furnish security in lieu of the cash amount of tax.
[271 D-EJ
CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 2403
& 2404 of 1966.
Appeals from the judgment and order dated April 4, 1963 of
the Assam and Nagaland High Court in Civil Rule Nos. 90 of
1960 and 382 of 1961.
D. N. Mukherjee, for the appellant.
Naunit Lal and B. P. Singh, for the respondents.
The Judgment of the Court was delivered by
Ramaswami, J. These appeals are brought by certificate from
the judgment of the High Court of Assam and Nagal~d dated
April 4 1963 in Civil Rule No. 90 of 1960 and Civil Rule
No 38Z of 1961 whereby the High Court dismissed the petitions
nnder Arts. 226 'and 227 of the Constitution filed by the appellant.
Messrs. Hardeo Das Jagan Nath . (hereinaft~r called the
'appellant') is a partnership firm carrymg on busmess at MawkF
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HARDEODAS v. ASSAM (Ramaswami, !.)
263
har, Shillong in the District of United Khasi and Jaintia Hills.
By a notification issued under Rule 6 of the Assam Sales Tax
Rules 1947, the Commissioner of Taxes, Assam fixed May 20,
1948 as the date by which the dealers of Shillong administered
area had to make applications for registration under the Assam
Sales Tax Act, 194 7 ( 17 of 194 7), hereinaiter called the 'Act'..
By notification dated April 15, 1948, the Government of India
had extended the provisions of the Act with slight modifications.
to the administered area in Shillong under s. 4 of the Extra Provincial Jurisdiction Act, 1947.
The appellant got itself registered
under the Act.
Upto the half yearly return periods ending September 30, 1957, the appellant was assessed to sales-tax and the
tax was realised by the Sales Tax Authorities.
On March 6,
1959, the Superintendent of Taxes, Shillong, respondent No. 4
raided the business premises of the appellant and seized the
account books etc.
The appellant filed a petition under Art. 226
of the Constitution in the High Court.
By its order dated June
3, 1960, the High Court directed the Deputy Commissioner of
Taxes, Assam to return the seized books and documents within
three weeks of the date of the order to the appellant. As directed
by the High Court, the documents were returned to the appellant
but on the basis of the information received from the account
books the Superintendent of Taxes issued notices dated April 4,
1959 under s. 19A of the Act for reassessment of the appellant
in respect of the half yearly return periods ending on September
30, 1956, March 31, 1957 and September 30, 1957. Thereafter,
ex parte reassessment was made for the rutum period ending September 30, 1956 by an order dated July 8, 1959 and for return
periods ending March 31, 1957 and September 30, 1957 by orders
dated July 24, 1959 and tax amounting to Rs. 1,22,933/- was
levied for these three periods.
A further sum of Rs. 47,504.70
was levied in respect of the return period ending March 31, 1958
by an ex parte assessment order dated March 23 1959. For the
other return period ending September 30, 19,58, a sum of
Rs. 49.427.90 was levied by an ex parte assessment order dated
April 8, 1959.
For these two return periods a penalty of
Rs. 1,000/- in respect of each return was also levied by two separate orders dated June 27, 1959. Thus the total amount of salestax and penal~y amountin$ to Rs. 2,19,865.60 in respect of the
five ret~m peno~s.was levied.
The appellant paid Rs. 20,074.68
at the time of or1gmal assessments in respect of the periods ending
on September 30, 1956, March 31, 1957 and September 30
1957.
,
The appellant thereafter filed appeals against all the seven
ex parte orders before the Assistant Commissioner of Taxes
Assam.
Along with the memoranda of appeals for the peri~
endi~g ~arch 31, 1958 and September 30, 1958, two separate
appllcahons were made by the appellant alleging that it was not
264
SUPREME COURT REPORTS
[1969] 2 S.C.R.
necessary to pay the assessed tax since the provisions of s. 30 of
the Act as amended did not apply to the case and it was prayed
that appeals should be admitted without payment oi the assessed
tax.
The contention of the appellant was rejected by the Assistant Commissioner though he reduced the amount of deposit for
the periods ending March 31, 1958 and September 30, 1958. The
appellant moved the Commissioner of Taxes in revision, but the
order of the Assistant Commissioner was affirmed by the Commissioner of Taxes though he reduced the amount further.
On
the application of the appellant the matter was r~ferred to the High
Court which held that the amended s. 30 of the Act was intra11ires.
In the meantime, the appellant also applied in respect of
the appeals relating to the periods ending September 30, 1956,
March 31, 1957 and September 30, 1957 as well as the penalty
appeals of periods ending on March 31, 195 8 and September 30,
1958 and prayed for admission of these appeals without payment
of the assessed tax.
In this case also the amount was reduced by
the Assistant Commissioner of Taxes but the matter was kept
pending till the disposal of the reference by the High Court.
On
May 21, 1960, the appellant filed separate petitions before the
Assistant Commissioner praying that as the financial condition of ·
the appellant was not good the appellant may be allowed to furnish reasonable security in lieu of cash and the appeals may be
admitted on such security. By his order dated May 23, 1960
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the Assistant Commissioner of Taxes fixed June 8, 1960 for payment of the amount required for admission of the appeals, failing
which the appeals were ordered to be dismissed. The appellant
then moved the Commissioner praying that in view of his finanE
cial difficulty he should be allowed to furnish reasonable security
in lieu of cash to be paid. The application was rejected by the
Commissioner on June 21, 1960. Thereafter all the five appeals
were rejected by a common order dated June 22, 1960 and the
two appeals against the imposition of penalty were also summarily
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rejected by an order dated June 22, 1960. The appellant was
further asked to show cause why penalty should not have been
imposed in respect of the periods ending September 30, 1956,
March 31, 1957 and September 30, 1957. The appellant filed
a petition to the High Court under Art. 226 of the Constitution,
being Civil Rule No. 90 of 1960 praying for a writ to quash the
order of the Commissioner dismissing the appeals in respect of the
five periods and for further reliefs.
The appellant also filed another petition under Art. 226, being Civil Rule No. 382 of 1961
asking for similar reliefs with regard to the periods ending March
31 1959 September 30, 1959, March 31, 1960, September 30,
1960 and March 31, 1961. The writ petitions were dismissed
by the High Court by a common judgment dated April 4, 1963.
The first question to be considered in these appeals is w~ether
the provisions of the Act were validly extended to the Shillong
H
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iiARi>EoDAs v. ASSAM (llamaswalni; J.)
265
Administered Areas.
By a notification dated April 15, 1948 the
Central Government extended the provisions of the Act to the
Shillong Administered Areas including Bara Bazar in exercise of
powers conferred by s. 4 of the Extra Provincial Jurisdiction Act,
1947. It was argued on behalf of the appellant that on April 15,
1948 when the notification was issued,
the Extra Provincial
,1 Jurisdiction Act, 1947 (Act XLVII of 1947) was not applicable
to the Shillong Administered Areas as the instrument of accession
by which the administration of the State of Mylliem was transferred to the Central Government was accepted by the GovernorGeneral of India on August 17, 1948. The preamble to the
Extra Provincial Jurisdiction Act, 1947 (hereinafter called the Act
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of 1947) provides:
"Whereas by treaty, agreement, grant, usage, sufferance and other lawful means, the Central Government has, and may hereafter acquire, jurisdiction in
and in relation to areas outside the Provinces of India;
It is hereby enacted as follows :-"
The expression "extra provincial jurisdiction" has been defined
under s. 2 of the Act of 194 7 as me.aning "any jurisdiction which
by treaty, agreement, gra,nt, usage, sufferance or other lawful
means the Central Government has for the time being in or in
relation to any area outside the Provinces". Section 3 states :
"3. ( 1) It shall be lawful for the Central Government to exercise extra provincial jurisdiction in such
manner as it thinks fit.
(2) The Central Government may delegate any
such jurisdiction as aforesaid to any officer or authority
in such manner and to such extent as it thinks fit."
Section 4 provides as follows :
"4. (1) The Central Government may, by notification in the official Gazette, make such orders, as may
seem to it expedient for the effective exercise of any
extra provincial jurisdiction
of the Central Government.
(2) Without prejudice
to the generality
of the
powers conferred by sub-section (1 ) , any order made
under that sub-section may provide--
(a) for determining the law and procedure to be
observed, whether by applying with or without
modifications all or any of the provisions of any
enactment in force in any Province or otherwise;
(b) for determining the persons who are to exercise
jurisdiction, either generally or in
particular
L2 Sup. CI/69-18
266
SUPREME COURT REPORTS
p969] 2 S.C.R.
cases or classes of cases, and the powers to be
exercised by them;
( c) for determining the courts, judges, magistrates
and authorities by whom, and for regulating the
manner in which, any jurisdiction auxiliary or
incidental to or consequential on the jurisdiction
exercised under this Act is to be exercised within
any Province; and
( d) for regulating the amount, collection and
application o.f fees."
Section 5 is to the following effect :
"Every act and thing done, whether before or after
the commencement of this Act, in pursuance of any
extra provincial jurisdiction of the Central
Government in an area outside the Provinces shall be as valid
as if it had been done according to the local law then
in force in that area."
The argument was stressed on behalf of the appellant that the
extra provincial jurisdiction could only be exercised by the Central
Government if by treaty, agreement, grant, usage, sufferance or
other lawful means the Central Government has for the time
being in or in relation to any area outside the provinces exercised
such jurisdiction.
It was contended that after the declaration c ..
independence .on August 15, 1947 the paramountcy lapsed and
the State of Mylliem became an independent State and the Central
Govermnent could not exercise any extra provincial jurisdiction
till the instrument of accession was signed by the GovernorGeneral.
It was pointed out that the notification by which the
Act was applied to Shillong Administered Areas was issued after
the lapse of paramountcy and before the instrmnent of accession
was signed by the Governor-General.
It was therefore argued
that the notification dated April 15, 1948 was not validly issue.j
and the provisions of the Act were not operative in the Shillon~
Administered Areas.
It was said that before the State of Mylliem
became an independent State on Augnst 15, 1947 there was no
treaty, grant, usage or arrangement whereby the British Crown
wjoyed any rights to levy taxes on the sale of goods within the
Mylliem State or any right to extend to that area any such Act
without the express consent or approval of the ruler of that State.
The opposite view-point·was put .forward on behalf of the respondents.
It was said that before August 15, 1947 the relatiovs of
the Crown Representative with Khasi Hills States were conducted
through fae Governor of Assam.
In practice the administration
of the Hill States was in great measure assimilated to that of the
Province of Assam partly by the application of the British Indian
Laws under the Indian (Foreign Jurisdiction) Order in Council
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HARDEODAS v. ASSAM (Ramaswami, J.)
267
and partly by administrative measures.
It was argued that by
virtue of the instrument of accession all previous existing arrangements between Khasi Hills States and the Government of India
in the Assam Province were continued and the Central Government could therefore exercise extra-provincial jurisdiction by
usage. To put it differently, the argument of the respondents was
that though the instrument of accession was accepted by the
Governor-General on August 17, 1948, it·recognised the fact that
there was a certain existing arrangement regulating relations between the Government of India and the Chiefs of the Kha~i Hills
States.
The Central Government therefore exercised ·extra provincial jurisdiction by agreement or usage and it cannot therefore
be said that the notification of the Central Government dated
April 15, 1948 was inv~lid.
When the appeals were originally heard we considered that
the material on the record was not sufficient to enable us to determine the disputed question, namely whether the Dominion of India
was entitled to exercise extra provincial jurisdiction over the
Shillong Administered Areas on April 15, 1948 which was the
material date.
The question at issne is not purely a question of
fact but a question relating to a "fact of State" which is peculiarly
within the cognizance of the Central Government (For expression
"Fact of State" see Halsbury-Laws of England, 3rd edn. Vol. 7,
p. 285). In view of the insufficiency of material we thought it
proper to avail ourselves of the procedure indicated by s. 6 o.f the
Act of 194 7 which enacts :
"6. ( 1) If in any proceeding, civil or criminal in a
Conrt established in India or bv the authority of the
Central Government outside India, any question arises
as to the existence or extent of any foreign jurisdiction
of the Central Government, the Secretary to the Government of India in the appropriate department shall,
on the application of the Court, send to the Court the
decision of the Central Government on the question,
and that decision shall' for the purposes of the proceeding be final.
(2) The Court shall send to the said Secretary, in
a document under the seal of the Court or signed by a
judge of the Court, questions framed so as properly to
raise the question, and sufficient answers to those questions shall be returned to the Court by the Secretary
and those· answers shall on production thereof be conclusive evidence of the matters therein contained."
By an order of this Court dated September 21, 1967 the
following two questions were forwarded to the Union of India
under the seal of this Court for submission of their answers :
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[1969] 2 S.C.R.
" ( 1) Whether the Dominion of India exercised
extra provincial jurisdiction over the Shillong Administered Area including Bara Bazar, which also included
Mawkhar, a part of the erstwhile Mylliem State, on
April 15, 1948;
(2) Whether the Dominioq of India had extra provincial jurisdiction on April 15, 1948 to extend the
Assam Sales Tax Act, 1947 (Act 17 of 1947) to the
Shillong Administered Area including Bara Bazar under
s. 4 of Extra Provincial Jurisdiction Act (Act 47 of
1947)."
In compliance of that order the Union of India have submitted
their answers on January .12, 1968 in the following tenns:
. "Ministry of Home Affairs. Replies to the questions
mentioned in the order dated September 21, 1967 passed
by the Supreme Court of India in Civil Appeals Nos.
2403 and 2404I1966.
( 1) The British Government in India had by treaty,
grant. usage, sufferance and other means
acquired
jurisdiction . over . certain territories of the erstwhile
State of Mylliem.
The jurisdiction was exercised under
the Indian
(Foreign Jurisdiction) Order-in-Council,
1902 as amended by the Indian (Foreign Jurisdiction).
Order-im-Council, · t937. Mawkhar was a part of' the
territories of Mylliem jurisdiction over which had been
agreed to be given by the Siem of Mylliem to the British
Government. It was included in those parts of Shillong
which came, in course of time, to be called the Shillong
Administered Area.
It has been reported that on actual
survey the small area known as Bara Bazar area comes
partly under Mawkhar proper and partlv under South
East Mawkhar and Garikhana. Barra Bazar area was
.thus a part of the area belonging to · the erstwhile
Mylliem State in which the British Government in India
exercised
jurisdiction under the Indian
(Foreign
Jurisdiction) Order-in-Council.
On the withdrawal of
British Rule the jurisdiction over the territories of the
erstwhile Mvlliem State which had been included in the
Shillong Administered Area continued to be exercised
with the consent of the Siem and the jurisdiction which
was until then exercised in those areas bv the British
Government in India was assumed by the Dominion of
India and it was retained thereafter bv virtue of the
instrument of accession signed by the Siem of Mylliem
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HARDEODAS V. ASSAM (Ramaswami, J.)
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and the agreement annexed thereto. The Dominion of
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India exercised extra provincial jurisdiction over the
.,
Shillong Administered Area including the Barra Bazar
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which also included Mawkhar a part of the Mylliem
State on April 15, 1948.
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( 2) The jurisdiction exercised by the British Government in India over the Shillong Administered Area
·~
was quite extensive.
In exercise of that jurisdiction
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that Government had extended,· with appropriate reseri.K
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vations, a number of Acts-Central as well as Provin-
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cial-to the Shillong Administered Area e.g. the Indian
.J
Income Tax Act and the Assam Municipal Act with
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the consent of the Siem of Mylliem where necessary.
On the withdrawal of British rule the Dominion
of
India acquired the same jurisdiction over the Shillong
Administered Area by virtue of the instrument of
• •
accession signed by the Siem of Mylliem and the agree_.,.
ment annexed thereto. The Dominion of India therefore
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had on April 15, 1948 extra provincial jurisdiction in
terms of the Extra-Provincial Jurisdiction Act, 1947
(Act 4 7 of 194 7) to extend the Assam Sales Tax Act,
1947 (Act 17 of 1947) to the Shillong Administered
Area including Barra Bazar. The Assam Sales Tax Act
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was actually extended to the Shillong Administered Area
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including Barra Bazar, after obtaining the consent of the
Siem of Mylliem, in the Ministry of States Notification
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no. 186-ffi dated the 15th April, 1948.
"'
,.
Sd. L. P. SINGH,
Secretary to the Govt. of India.
F
New Delhi,
'\
January 12, 1968."
l -i
It is clear from the letter of the Union Government that it was
._..
entitled to exercise extra provincial jurisdiction over Shillong Ad-
-1
ministered Area on April 15, 1948. The reason is that prior to
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that date the British Government had exercised that jurisdiction
~ ...
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under the Indian (Foreign Jurisdiction) Order-in-Council, 1902
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as amended by the Indian (Foreign Jurisdiction) Order-in-Council, 193 7.
On the withdrawal of British rule the jurisdiction over
the territory of Mylliem State continued to be exercised with the
consent of the ruler by the Dominion of India and the jurisdiction
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was retained thereafter by virtue of the instrument of accession
~4.
signed by the Siem of Mylliem and the agreement annexed thereto.
It is also manifest t~at the juris.di~tion exercised by the British
Government over the Shdlong Adm1mstered Area was quite exten-
270
SUPREME COURT REPORTS
[1969] 2 .S.C R.
sive and in exercise of that jurisdiction a number of Acts-Central
A
& Provincial-were extended to the Shillong Administered Area,
for example, the Indian Income Tax Act and the Assam Municipal Act with the consent of the Siem of Mylliem where necessary.
On the withdrawal of the British rule the Dominion of India acquired the same jurisdiction which included the extension of the
Act to the Shillong Administered Area. Under s. 6 (2) of the Act
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of 194 7 the· answers of the Central Government to the questions
forwarded by this Court shall be treated as conclusive evidence of
the matter therein contained.
We accordingly hold that the argument of the appellant on this aspect of the case should be
rejected.
It was then contended on behalf of the appellant that s. 30 of
the Act after the amendment was not applicable and the Assistant
Commissioner of Taxes had no authority to ask the appellant to
deposit the amount of tax assessed before hearing the appeal.
Section 30 of the Act, as it original!y stood, was to the following
effect :
"30. ( 1) Any dealer objecting to an order of assessment or pellalty passed under this Act may,
within
thirty days from the date of the service of such order,
appeal to the prescribed authority, against such assessment or penalty;
Provided that no appeal shall be entertained by the
said authority unless he is satisfied that such amount of
tax as the appellant may admit to be due from him has
been paid;
Provided further that the authority before whom ·
the appeal is filed may admit it after the expiration of
thirty days, if such authority is satisfied that for reasons
beyond· the control of the appellant or for any other
sufficient cause it could not be filed within time.
"
After the amending Act of 1958 the section reads as follows :
"30. ( 1) Any dealer objecting to an order of assessment or penalty passed under this Act may, within thirty
days from the date of the service of such order, appeal
to the prescribed authority, against such assessment or
penalty;
Provided that no appeal shall be entertained by the
said authority unless he is satisfied that the amount of
tax as8essed or the penalty levied, if not otherwise
directed by him, has been paid;
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HARDEODAS v. ASSAM (Ramaswami, 1.)
2'.11
ProvidedTurtiiefiha! theauthority- beforewhom --
the appeal is filed may admit it after the expiration of
thirty days, if such authority is satisfied that for reasons
beyond the control of the appel!ant or for any other
sufficient cause it could not be filed within time.
,,
It was contended that the amendment came into force with
effect from April 1, 1958 and it cannot be given retrospective
effect so as to apply to assessment periods ending on September
30, 1956, M·arch 31, 1957 and September 30, 1957. We are unable to accept this argument as correct because the assessment.;
for these three periods were completed after the amending Act
came into force i.e., after April 1, 1958. The appeals against the
assessments were also filed after the amendment. It is therefore
not correct to say that the amending Act has been given a retrospective effect and the Assistant Commissioner of Taxes was there-
.fore right in asking the appellant to comply with the provisions of
the amended s. 30 of the Act before dealing with the appeals.
It was lastly contended on behalf of the appellant that the
Sales Tax Authorities were not right in holding that there was no
provision under the Act by which security can be accepted in lieu
of cash payment. Reliance was placed upon the phrase "otherwis(
directed" in the amended s. 30 of the Act.
In our opinion, there
is no substance in this argument.
The expression "otherwise
directed" only means that the appellate authority can ask the
assessee to deposit a portion of the amount and not the whole, but
the section gives no power to the appellate authority to permit the
assessee to furnish security in lieu of cash amount of tax.
We
accordingly reject the argument of the appellant on this point.
For the reasons expressed we hold that the High Court was
right in dismissing the writ petitions and these appeals must be
dismissed with costs-there will be one set of hearing fees.
V.P.S.
Appeals dismissed.