# Union Territory D.f Tri/mra, Agtirtala v. Gopal Chanikr Dutta Choudhury

- **Citation:** [1963] Supp. 1 S.C.R. 275
- **Court:** Supreme Court of India
- **Decided:** 1960-07-15
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/union-territory-d-f-tri-mra-agtirtala-v-gopal-chanikr-dutta-choudhury-2708
- **Pages:** 7

## Headnote

'
1 S.C.R.
SUPREME COURT RF PORTS
275
The appeal must therefore be allowed and the
petition filed by the respondent dismissed. There
will ho "" ""'" " '° oorogbo"'~ ppool ,.,,,,,.,,
M/s .. MANGALORE GANESH BEDI WORKS
v.
THE STATE OF MYSORE & ANOTHER
(S. K.
DAS, J. L.
KAPUR,
A. K.
SARKAR,
1f. HrnAYATULLAH and RAGHUBAll DAYAL, .JJ.)
lnrlian Coinage-Enactment le?Jying tax in terms of naya
paisa., if a taJ:ing measnrc-Constitntional ?Jalidity-Amendment
-Effect-Indian Coinage Act, (Act. 3 of 1906), as amended by
Indian coinage (Amendment) Act, (31 of 1955), s. 14-0onstilntion of India, Arts. 255, 197, 198, 199, 202.
The appellant was a registered firm under the Mysore
Sales Tax Act on which was imposed a tax of Rs. 1,16,728.44
Nps at the rate cf .02 Nps per rupee on a return of over Rs.58,
36,422·26 Nps.
Its grievance was that according to Mysore
Sales Tax Act, it was liable to Sales Tax at the rate of 3 pies
for every rupee but after the amendment of Indian Coinage Act
(Act 30 of 1906) by amending Act 31 of 1955, tax was levied
at the rate of .02 Nps per rupee, which made him liable to pay
more than 'vhat he \VOtild have paid if charged at the rate of
3 pies per rnpee.
It was contended that such enhancen1ent of
tax \Vas unconstitutional and illegal being in contravention of
Article 255 0f the Constitution. Objection• by the appellant
regarding the validity of tax were (1) that by the substitution
of 2 naya paisas in place of 3 pies, a change '\vas brought in the
tax exigihle by the Mysore Sales Tax Act and since this enactment enhancing the tax was eot enacted according to procedure
for money hills not being in accordance with Articles 193, 199
and 207 of the constitution, the tax \Vas illegal and invalid;
(2) that the Indian coinage
~'\cti being a central i\ct dealing
,vith "coinage and legal tender" under item 3G of
I~ist I,
could not change the rate of tax under the Mysore Sales Tax
Act.
1962
Union Territory D.f
Tri/mra, Agtirtala
v.
Gopal Chanikr
Dutta Choudhury
Shah, J.
1962
Septemb<r 25.
1962
M/s. Mangalore
.CantJh Bedi Works
v.
The State of Mysore
Kapur,
276 SUPREME COURT REPORTS [1963] SUPP.
Held, that by substitution of new coinage, no enhancement of tax was enacted but was mere Iv a sbustitution of one
coinage by another of equivalent value Und even assuming that
it was a taxing measure, its validity could not be challenged on
the ground that it offends Arts. 197 to 199 and the procedure
laid down in Art. 202 of the Comtitution, because of Art. 212
which prohibits the validity of any proceedings in a Je~islature
from being called in question for irregularity of procedure and
formalities of .'\rt. 255 a re only matters of procedure.
Held, further, that if the Indian Coinage Act had 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 (Constrnction of References to Values) Act, 1957, had
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
was not unconstitutional, nor \Vas it a taxing measure, but
dealt mere I~. with the canversion of the old coinage into new
coinage.
CIVJL.APPELLATE JuRISDICTTON : Civil Appeal
No. 194 of 1962.
Appeal by special leave from the order dated
July 15, 1960, of the Mysore High Court in Writ
Petition No. 719 of 19fi0.
N. C. Chatterjee and S. S. Shukln, for the
appellant.
N. S. Bindra. and P. D. .Menon, for the
respond en ts.
1962. September 25.
The Judgment of the
Court was delivered by
KAPUR, J.-This is an appeal by special leave
against the judgment and order of the High Court of
Mysore dismissing the assessee's petition under Art.
226 of the Constitution for quashing the order of
assessment relating to two quarters i. e. from April
], 1957 to September 30, 1957, under the Mysore
Sales Tax Act, Act VI of 1948.
The appellant is a firm registered under the
Mysore Sales Tax Act and was assessed to sales tax
I
..
1 S.C.R. SUPREl\IE COURT REPOR

## Text

'
1 S.C.R.
SUPREME COURT RF PORTS
275
The appeal must therefore be allowed and the
petition filed by the respondent dismissed. There
will ho "" ""'" " '° oorogbo"'~ ppool ,.,,,,,.,,
M/s .. MANGALORE GANESH BEDI WORKS
v.
THE STATE OF MYSORE & ANOTHER
(S. K.
DAS, J. L.
KAPUR,
A. K.
SARKAR,
1f. HrnAYATULLAH and RAGHUBAll DAYAL, .JJ.)
lnrlian Coinage-Enactment le?Jying tax in terms of naya
paisa., if a taJ:ing measnrc-Constitntional ?Jalidity-Amendment
-Effect-Indian Coinage Act, (Act. 3 of 1906), as amended by
Indian coinage (Amendment) Act, (31 of 1955), s. 14-0onstilntion of India, Arts. 255, 197, 198, 199, 202.
The appellant was a registered firm under the Mysore
Sales Tax Act on which was imposed a tax of Rs. 1,16,728.44
Nps at the rate cf .02 Nps per rupee on a return of over Rs.58,
36,422·26 Nps.
Its grievance was that according to Mysore
Sales Tax Act, it was liable to Sales Tax at the rate of 3 pies
for every rupee but after the amendment of Indian Coinage Act
(Act 30 of 1906) by amending Act 31 of 1955, tax was levied
at the rate of .02 Nps per rupee, which made him liable to pay
more than 'vhat he \VOtild have paid if charged at the rate of
3 pies per rnpee.
It was contended that such enhancen1ent of
tax \Vas unconstitutional and illegal being in contravention of
Article 255 0f the Constitution. Objection• by the appellant
regarding the validity of tax were (1) that by the substitution
of 2 naya paisas in place of 3 pies, a change '\vas brought in the
tax exigihle by the Mysore Sales Tax Act and since this enactment enhancing the tax was eot enacted according to procedure
for money hills not being in accordance with Articles 193, 199
and 207 of the constitution, the tax \Vas illegal and invalid;
(2) that the Indian coinage
~'\cti being a central i\ct dealing
,vith "coinage and legal tender" under item 3G of
I~ist I,
could not change the rate of tax under the Mysore Sales Tax
Act.
1962
Union Territory D.f
Tri/mra, Agtirtala
v.
Gopal Chanikr
Dutta Choudhury
Shah, J.
1962
Septemb<r 25.
1962
M/s. Mangalore
.CantJh Bedi Works
v.
The State of Mysore
Kapur,
276 SUPREME COURT REPORTS [1963] SUPP.
Held, that by substitution of new coinage, no enhancement of tax was enacted but was mere Iv a sbustitution of one
coinage by another of equivalent value Und even assuming that
it was a taxing measure, its validity could not be challenged on
the ground that it offends Arts. 197 to 199 and the procedure
laid down in Art. 202 of the Comtitution, because of Art. 212
which prohibits the validity of any proceedings in a Je~islature
from being called in question for irregularity of procedure and
formalities of .'\rt. 255 a re only matters of procedure.
Held, further, that if the Indian Coinage Act had 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 (Constrnction of References to Values) Act, 1957, had
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
was not unconstitutional, nor \Vas it a taxing measure, but
dealt mere I~. with the canversion of the old coinage into new
coinage.
CIVJL.APPELLATE JuRISDICTTON : Civil Appeal
No. 194 of 1962.
Appeal by special leave from the order dated
July 15, 1960, of the Mysore High Court in Writ
Petition No. 719 of 19fi0.
N. C. Chatterjee and S. S. Shukln, for the
appellant.
N. S. Bindra. and P. D. .Menon, for the
respond en ts.
1962. September 25.
The Judgment of the
Court was delivered by
KAPUR, J.-This is an appeal by special leave
against the judgment and order of the High Court of
Mysore dismissing the assessee's petition under Art.
226 of the Constitution for quashing the order of
assessment relating to two quarters i. e. from April
], 1957 to September 30, 1957, under the Mysore
Sales Tax Act, Act VI of 1948.
The appellant is a firm registered under the
Mysore Sales Tax Act and was assessed to sales tax
I
..
1 S.C.R. SUPREl\IE COURT REPORTS
277
on a return of over Rs. ii8,:ln,422.:W Nps and the tax
imposed on lhat sum at .112 Nps per rupee was
Rs. I,rn, 728.44 Nps.
The grievance of the appellant
was that according to the Mysore Saks Tax Act he
was liable to sales tax at the rate of :: pies for every
rupee on the turnover and calculated on that basis
the amount of tax would be Rs. 91,ti!JO/- but after
the amendment of the Indian Coinage Act (Act :~
of l!l06) by the Amending Act 31 of 19iiii the rate
of sales tax which was levied on the appellant's
lkedis was .02 Nps 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 at the rate
of 3 pies per rupee. It was contended on behalf of
the appellant in the High Court and before us that
this amounted to enhancement of tax which was
illegal because the tax had not been increased in the
manner provided under the Constitution and thus it
was a breach of Art. 26f\ of the Constitution aml was
therefore void and illegal.
Under the amended Indian Coinage Act provision was made ins. 14 for the substitution of value
expressed in annas, pice and pies by value expressed
in naya pa.isa, which was the new coinage introduced
under the
amended Act.
Section
U
reads as
under:-
"S.1-1(1) The rupee shall be divided into one
hut1dred units and the new coin r<'presenting
such 1111it m<ty be designated by the Central
Gowrnmcnt, by notification in the Official
Gazette, under such name as it thinks fit,
and the rupee, half rupee and quarter-rupee
shall be respectively equivalent to one
h11ndred, fifty and twenty five such new
coins and shall, subject to the provisions
of sub.section (I) and lftlb-section (2) of
section 13 and to the extent specified therein. be a legal tender in payment or nu
account acco~dingly.
1962
i.ll/s. Afangalora
G:inesh Bedi ~VorkJ
v.
The State of .W;'sore
J;apur, J.
1962
Mis.
Jfangalore
Ganesh Bedi WorkJ
v.
1"he Stole of Af;'sore
Kapur, J.
278 SUPRE!vIE COURT REPORTS [1963] SUPP.
(2) All coins issued under the authority of tliis
Act in any denomination of annas, pice
and pies shall, to the extent specified in
section 13, be a legal tender in payment
or on account at the rate of sixteen annas,
sixty four pice or one hundred and ninety
two pies to one hundred new coins referred
to in sub-section (I), calculated in respect
of any such 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
com
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, picc and pies shall be construed
as references to that value expressed in new
coins referred to in sub-section (I) converted
thereto
at the
rate specified in subsection(:.!)".
By sub-ss. (1) & (2) ofs. 14 therefore one rupee
is divided into a hundred naya paisas, the old legal
ti:nder of sixteen annas or sixty four picc or one
hundred and ninety two pies to a rupee remains legal
tender which will be equivalent to one hundred naya
paisas and for purposes of calculation and conversion
of old coins into new coins, one old coin or a number
of such coins have to be calculated to the nearest new
coin or coins and where the new coin above and the
new coin below are equally near then the calculation
is to the new coin below. Sub-s. (3) provides that all
referencfs under ·any enactment to annas, pice or
pies have to be construed as reference to the new coin
referred to in sub-section (I). In other words
wherever the old legal tender i.e. annas, pice and pies
1 S.C.R. SUPREME COURT REPORTS
279
is mentioned in an enactment it is to be converted
into naya paisas and the naya paisas are to be substituted in place of the old legal tender calculated in the
manner laid down in sub-s.(2}.
On March 1, 1957,
the Mysore Legislature enacted the Mysore existing
Laws (Construction of References to Values Act, 1957)
Act 12 of 1957.
By s.2 of that Act "existing law"
was defined as an Act, Order, or regulation having
the force of law in Mysore State relating to any
matter other than any enactment, notification, rule
or order to which the provisions of sub-s.(3) of s. 14 of
the Indian Coinage Act are applicable. By s. 3 of that
Act in every such existing law reference to any value
expressed in annas, pice or pies shall be construed as
reference to that value expressed in new coins rcfon\:d
to in sub-section (l) of s. 14 of the Indian Coinage
Act converted thereto at the rate specified in sub-s.( ::!)
of s. 14 of that Act.
Two objections were taken to the validity of
the tax : :Firstly it was argued that by the sub>tituti·)n
of 2 naya paisas in place of 3 pies there was a change
in the tax exigible by the l\f ysore 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 Arts. 198, 199 and :!07 of the
Constitution and as no such Money Bill was in traduced
or passed for the enhancement of the tax, the tax
was illegal ard invalid. In our opinion by substitution of
n;w coinage i.e. naya paisas in place of annas, pice and
pies no enhancement of tax was enacted but it was
mer:Iy a substitution of one coinage by another of
eqmvalei:t val~e: Even assuming that it is a taxing
meas~re its validity cannot be challenged on the ground
th:it lt ott:ends Arts. 197 to 199 and the procedure
laid ?~wn m A~t'. 202 of the Constitution. Article 21::!
prohibits the vahd1.ty of any proceedings in a legislature
of a State from. bemg c~lled in question on the ground
of any alleged 1rregul~nty of procedure and Art. 255
lays down that reqmrements as to recommendation
1962
M/J.
.\fan ·;11lrir1!
Ganc:,/1 Hl·di TVvrh 5
v.
The State o.f .Jl}'1ore
J(apur, J.
1962
Mfs.
Mangalore
Ganesh Bedi Works
v.
The Stale of Mys1re
Kapur, J.
280 SUPREME COURT REPORTS [1963] SUPP.
and previous sanction are to be regarded as matters
of procedure only. It provides :
Art. 255 "l\o Act of Parliament or of the Legislature of a State, and no provision in any
such Act, shall be invalid by reason
onlv that some recommendation or
previous sanction required
by this
Constitution was not given, if assent
to that Act was given-
( a) where. the recommendation required
was that of the Governor either by the
Governor or by the President ;
(b ) ................................................... .
(c) ................................................... "
Consequently the tax cannot be challenged on the
ground that it is contrary to the provisions of the
Constitution.
Secondly, it was submitted that the -Indian
Coinage Act, being a Central Act dealing with
"coinage and legal tender" under item 36 of List I,
could not change the rate of tax under the Mysore
Sales Tax Act. It is unnecessary to decide this
question because if the Central Act i.e. the Indian
Coinage Act, has 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
pa1sas is not. unconstitutional !!or is it a t:ixing
measure hut 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
1 S.C.R.
SUPREME COURT REPORTS
281
Art. 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 subsequently filed after the final
assessment. In our opinion there is no merit in that
submission.
The previous petition upon which the
appellant relies was to set aside the provisional
assessment and it was set aside in the following
language :
"Read Memo dated 7-6-1958 by the Advocate
General and Advocate for respondent, stating
that the respondents do not oppose the writ
petition being allowed and that the provisional
assessment may be set aside"
The previous decision setting aside the provisional
assessment does not indicate what issues were raised
and decided and there is no indication that the
question now raised before us was before the Court.
That decision cannot therefore operate as res judicata.
In our opinion this appeal is without merit and
is dismissed with costs.
A ppool disrnissed.
1962
M/s. Mangalore
Ganesh Bedi Warks
v.
The State of M_uore
Kapur, J.