Singareni Collieries Co. Ltd. vs Commissioner Of Commercial Taxes on 25 July, 1961
The learned counsel for the respondent, Mr. A. Ranganadham
Chetty, invited us to hold that the observations of Shah,
J., in Tata Iron and Steel Co. (1) case were obiter, and to
consider the question afresh. We are unable to reopen the
question at this stage. Shah, J., was interpreting s. 3 of
the Act, and although the Court was principally concerned
with the interpretation of s. 3(b), it was necessary to
consider the interpretation of s. 3(a) in order to arrive at
the correct interpretation of s. 3(b). Further these
observations were approved in The Cement Marketing Co. of
India v. The State of Mysore(3), The State Trading
Corporation of India, v. The State of Mysore(4) and
Singareni Collieries Co. v. Commissioner of Commercial Tax,
Hyderabad(2). In the State Trading Corporation(4) case, in
so far as the assessment for the assessment year 1957-58 was
concerned, this Court applied the principles laid down in
Tata Iron and Steel Co.(1) case. Accordingly we hold that
the High Court was wrong in holding that before a sale could
be said to have occasioned import it is necessary that the
sale should have preceded the import.