# RAM BHAROSEY LAL KRISHAN KUMAR v. STATE OF U.P. & ORS

- **Citation:** [1972] 2 S.C.R. 146
- **Court:** Supreme Court of India
- **Decided:** 1971-10-21
- **Case number:** Civil Appeals Nos. 240 and 241 of 1969
- **Bench:** K. S. Hegde, H. R. Khanna
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/ram-bharosey-lal-krishan-kumar-v-state-of-u-p-ors-5506
- **Pages:** 6

## Headnote

Uttar Prade$h Sales Tax Act, 194B~s. 3AA, 3D-Noti.~cation under
s. 3D imposinR purchase tax on goods covered by s. 3AA.-ValidityScope of .r. 3-D.
Under s. 3AA of the Uttar Pradesh Sales Tax Act, I 9'48 "not withstanding anything contained in s. 3 or 3A" tax on the turnover of the
goods specified therein was not leviable except at the point of sale by a
dealer to the consumer.
Section 30, incorporated into the Act later,
authorised the imposition of a tax on the turnover of first purchase and on
the issue of a notification under the section no tax could be levied under
any other section in respect of the goods so notified.
On the question
whether the notification dated October 1, I 964 imposing a purchase tax
on oil seeds was invalid for the reason that it contravened s. 3AA of the
Act,
HELD : It is open to the State Government to levy purchase tax, in
exercise of its powers under s. 30, in respect df goods covered by s. 3AA.
At the time the legislature incorporated into the Act s. 30 it must have
been aware of the existence of s. 3AA, yet, in sub-s. (4)
of s. 30 it
decll>red that on the issue of a notification under the section, no tax shall
be levied under any other section in respect of the goods so notified. The
ambit of this provision is very wide and it clearly takes in goods mentioned
in s. 3AA.
Further, the non-obstante clause does not take in s. 3D, and
if the legislature intend,ed to exclude the operation of s. 30, in respect of
matters covered by s. 3AA nothing would have been easier than to say so.
Therefore, there are no grounds to cut down the amplitude of the power
conferred on the State Government under sub-s. ( 4) of s. 3-0. [150 H151 DJ

## Text

146
RAM BHAROSEY LAL KRISHAN KUMAR
v.
STATE OF U.P. & ORS.
October 21, 1971
[K. S. HEGDE AND H. R. KHANNA, JJ.]
Uttar Prade$h Sales Tax Act, 194B~s. 3AA, 3D-Noti.~cation under
s. 3D imposinR purchase tax on goods covered by s. 3AA.-ValidityScope of .r. 3-D.
Under s. 3AA of the Uttar Pradesh Sales Tax Act, I 9'48 "not withstanding anything contained in s. 3 or 3A" tax on the turnover of the
goods specified therein was not leviable except at the point of sale by a
dealer to the consumer.
Section 30, incorporated into the Act later,
authorised the imposition of a tax on the turnover of first purchase and on
the issue of a notification under the section no tax could be levied under
any other section in respect of the goods so notified.
On the question
whether the notification dated October 1, I 964 imposing a purchase tax
on oil seeds was invalid for the reason that it contravened s. 3AA of the
Act,
HELD : It is open to the State Government to levy purchase tax, in
exercise of its powers under s. 30, in respect df goods covered by s. 3AA.
At the time the legislature incorporated into the Act s. 30 it must have
been aware of the existence of s. 3AA, yet, in sub-s. (4)
of s. 30 it
decll>red that on the issue of a notification under the section, no tax shall
be levied under any other section in respect of the goods so notified. The
ambit of this provision is very wide and it clearly takes in goods mentioned
in s. 3AA.
Further, the non-obstante clause does not take in s. 3D, and
if the legislature intend,ed to exclude the operation of s. 30, in respect of
matters covered by s. 3AA nothing would have been easier than to say so.
Therefore, there are no grounds to cut down the amplitude of the power
conferred on the State Government under sub-s. ( 4) of s. 3-0. [150 H151 DJ
CIVIL APPELLATE JURISDICTION : Civil Appeals Nos. 240 and
241 of 1969.
Appeals from the judgment and decree dated December 18.
1968 of the Allahabad High Court in Civil Misc. Writ No. 4697
of 1968.
J. P. Goyal and Sobhag Mal Jain, for the appellant (in both
the appeals).
B
c
D
E
F
L. M. Singhvi and 0. P. Rana, for the respondents \in both
G
the appeals).
The Judgment of the Court was delivered by
Hegde, J.
These are appeals by certificate.
They are by
the same appellant and
they raise common
questiQll of law.
Hence they are considered together.
ff
Two questions of law were urged on behalf of the appellant
in support of the appeals.
The first contention urged was that
,.
I
RAM BHAROSEY v. U.P. STATE (Hegde, J.)
141"
A Section 3-D(l) of the U.P. Sales Tax Act, 1948 (to be hereinafter referred to as the Act) is ultra vires the Constitution, firstly
because that under that section excessive legislative power had
been delegated to the State Government a'lld secondly on the
ground that it discriminates between the registered dealers who
made their purchases through licensed dealers and the registered
B dealers who made their purchases through dealers who are not
licensed. The second contention taken was that notification No.
ST-7122/X-900(16)64 dated October 1, 1964 issued under s.
3-D ( 1) of the Act imposing purchase tax on oil seeds is invalid
as it contravenes s. 3AA of the Act.
C
We have considered the first ground of attack in Civil Appeals
Nos. 362 and 1692 of 1969 (M/s. Sita Ram Bishambhar Dayal
etc. v. State of U.P.) in which we have delivered judgment just
now. For the reasons mentioned therein, the contention that s.
3-D(l) is ultra vires the Constitution fails.
The only surviving question is whether the notification reD ferred to earlier is violative of s. 3AA of the Act.
Before examining that contention, it is necessary to set out the
relevant facts.
The appellant is a partnership firm. It carries on business as
dealers in groundnuts, oil seeds and Arhar. For the assessment
E years 1965-66, 1966-67, the Sales-tax Officer. Rampur assessed
the appellant to sales-tax on the turnover of the groundnuts oil
manufactured by the appellant and to purchase tax on the turnover of the oil seeds and foodgrains.
The appellant unsuccessfully appealed against the assessment orders. Thereafter it took
up the matter in revision before the revising 11uthority.
There·
F
again it substantially failed. Aggrieved by that decision, he moved'
the High Court of Allahabad for a writ of certiorari quashing the
levy of purchase tax imposed on him in respect of his purchases
of oil seeds.
The High Court rejected those petitions.
Hence
these appeals.
We shall now extract the impugned notification to the extent
G it is material for the purpose of this appeal.
H
It reads thus:
"Not. No. ST-7122/X-99(16)64 dated October 1, 1964.
In exercise . of the powers under sub-section (1 ) of
section 3-D of the Uttar Pradesh Sales Tax Act, 1948
(U.P. Act No. XV of 1948), the Governor of Uttar
Pradesh is pleased to notify that with effect from October 1, 1964, the turnover of first purchases fn respect
148
SI.
No.
SUPREME COURT REPORTS
[1972) 2 S.C.R.
of goods mentioned below shall be liable to tax under
Section 3-D of the said Act.
Name of goods
Rate of tax.
A
1. Foodgrains including cereals and pulses
l ·5 paisa per rupee
B
2. Gur
3. Oilseeds
3 paisa per rupee
2 paisa per rupee
As per this notification a purchase tax of 2 paise per rupee
on the turnover of the first purchase of oil seeds is leviable. It
is contended that this notification violates s. 3AA of the Act. c
Section 3AA says:
"Notwithstanding anything contained in section 3 or
3A, the turnover in respect of the following goods shall
not be liable to tax except at the point of sale by a
dealer to the consumer, and the rate of tax shall be
such, not exceeding the maximum rate for the time beD
ing specified in section 15 of the Central Sales Tax Act,
1956, as may be declared by the State Government by
notification in the Official Gazette:
(i) ....... .
(ii)
(iii)
(iv)
(v)
(vi) oil seeds, that is to say, seeds yielding non-volaE
tile oils used for human consumption, or in inF
dustry, or in the manufacture of varnishes, soap
and the like, or in lubrication, and volatile oils
used chiefly in medicines, perfumes, cosmetics
and the like.
2. Unless the dealer proves otherwise, every sale by
a dealer shall, for the purposes of sub-section ( 1)
G
be presumed to be to a consumer.
Explanation.-A sale of any of the goods specified in
sub-s. ( 1) to a registered dealer who does
not purchase them for resale in the same
condition in which he has purchased them,
or to an unregistered dealer shall, for purH
poses of this section, ·be deemed to be a
sale to ihe consumer."
A
B
c
I
D
E
F
G
H
RAM BHAROSEY v. U.P. STATE (Hegde, !.)
149
This section was incorporated into the Act on April I, 1956.
Under this section, on the goods specified therein, sales tax not
exceeding the maximum rate for the time being specified in s. 15
of the Central Sales Tax Act, 1956 can be levied by the State
Government on the turnover in respect of sales by dealers to the
consumers.
from an
analysis of this
provision, we get the
lollowing:
!. that tax to be levied is a sales-tax;
2. levy in question is a single point levy;
3. the point of levy is the sale by the dealer to the
consumer and
4. the rate to be fixed by the State Government is
not to exceed the maximum rate for the time
being specified in s. 15 of the Central Sales Tax
Act, 1956.
If we hold that provisions contained in s. 3AA continue t<>
be in force in respect of dealing in oil seeds then the appellant's.
contention that the impugned levy is an invalid levy succeeds ..
But the question is whether that contention is correct.
This takes us to s. 3-D. That section reads:
"I. Except as provided in sub-section ( 2), there
shall be levied and paid, fod each assessment year or
part thereof, a tax on the turnover, to be determined in
such manner as may be prescribed, of first purchases
made by a dealer or through a dealer, acting as a purchasing agent in respect of such goods or class of goods,
and at such rates, not exceeding two paisa per rupee in
the case of foodgrains, including cereals and pulses, and
pulses, and five paisa per rupee in the case o~ other goods
and with effect from such date, as may, from time to
time, be notified by the State Government in this behalf.
Explanation.-· In the case of a purchase made by a registered dealer through the agency of a licensed dealer, the registered dealer shall be deemed to be the first purchaser, and in every other
case of a first
purchase, made
through the
agency of a dealer, the dealer who is the agent
shall be deemed to be the first purchaser.
2. x
3. x
x
x
x
x
x
x
150
SUPREME COURT REPORTS
[1972] 2 S.C.R.
4. On the issue of a notification under this section
no tax shall be levied under any other section
in respect of the goods so notified.
S. The provisions of the second and third proviso
to Section 3 and of Section 18, shall mutatis
mutandis apply in relation to the tax payable
under this Section.
6. x
x
x
x
A
B
7. Unless the dealer proves otherwise to the satisfaction of the assessing authority, every purchase by or through a dealer shall, for the purposes of sub-section ( l ) , be presumed to be
C
the first purchase by such dealer and
every
sale through a dealer shall, for the purposes of
sub-section ( 2), be presumed to be sale to a
first purchaser."
for our present_ purpose, it is not necessary to refer to the
0
second and third provisos to s. 3 and s. 18. It may be noted
ihat s. 3-D was incorporated into the Act on August 1, 1958.
The contention on behalf of the appellant was that s. 3AA
is a special provision regarding certain specified class of goods
includiiig oil seeds whereas s. 3-D is a general provision. Hence
dealings in respect of oil seeds must be held to be governed E
exclusively by s. 3AA. In support of his contention, the learned
Counsel for the appellant called into aid the rule of construction
that a special provision excludes the application of a general
provision.
On the other hand, it was contended on behalf of
the Revenue that power was conferred on the State Government
to levy purchase tax in place of sales-tax in respect of any goods
that may be notified under s. ~-D( 1) subject only to the condiF
tions mentioned therein.
According to Dr. Singhvi,
learned
Counsel for the Revenue, the legislature left the
questions
whether in respect of a class of goods, the appropriate levy is
sales tax or purchase tax as well as what is the appropriate
point of levy, to the State Government because a decision on
that question has to be taken on an
assessment of various
G
factors, some of which are not constant.
According to him
in view of the language employed in sub-s. ( 4) of s. 3-D, it is
not possible to apply the rule of construction that special legislation in respect of any particular topic should exclude the appli·
cation of general legislation.
·It may be noted that s. 3-D was incorporated into the Act
H
much later than s. 3AA. As seen earlier s. 3AA was incorporated into the Act on April 1, 1956 whereas s. 3-D was added
I
I
RAM BHAROSEY v. U.P. STATE (Hegde, /.)
151
on A11gust 1, 1958.
At the time the legislature incorporated
into the Act s. 3-D, it must have been aware of the existence of
s. 3AA but yet in sub-s. ( 4) of s. 3-D, it declared that on the
issue of a notification under that section, no tax shall be levied
under auy other section in respect of the goods so notified. The
ambit of this provision is very wide and it clearly takes in goods
B mentioned in s. 3AA.
Now turning to s. 3AA, it is important to note that it begins
by saying "notwithstanding anything contained in section 3 or
3-A".
The non-obstante clause does not take in s.
3-D. If
the legislature intended to exclude the operation of s. 3-D, in
respect of matters covered by s. 3AA, nothing would have been
C
easier than to say so.
It could have said "notwithstanding anything contained in s. 3, 3-A and s. 3-D". But it did not choose
to do that.
Therefore there are no grounds to cut down the
amplitude of the power conferred on the State Government
under sub-s. ( 4) of s. 3-D.
The High Court of Allahabad has consistently taken the view
D
that it is open to the State Government to levy purchaSe tax in
exercise of its powers under s. 3-D even in respect of goods
covered by s. 3AA. We are in agreement with that view.
E
In the result these appeals fail and they are dismissed with
costs.
One set.
K.B.N.
Appeals dismissed.