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Goa High Court
V.S.JETLEY
Xembu Govinda Sinai Cuvelcar - Appellant
Versus
Union of India, through the Administrator of Goa, Daman and Diu - Respondent
Decided On : 08/26/1968
MINING TAX - Levy and collection - Authority of law - Goa, Daman and Diu (Administration) Act, 1962, S. 5(1) - Goa, Daman and Diu (Currency and Coinage) Regulation, 1962, Ss. 2(a), 3, 4, 6 - Constitution of India, Art. 265 - Whether the tax levied for the years 1962 to 1966 is by authority of law in terms of Article 265 of the Constitution.
Fact of the Case:
The petitioners, owners of mining concessions, challenged the right of the respondents to levy and collect mining taxes for the years 1962 to 1966, contending that such taxes were without the authority of law. The petitioners argued that the tax liability was increased ten times by Decree Law No. 32251 dated 9th September, 1942, and that the Goan rupee was a legal tender in the territory. The respondents contended that the petitioners were guilty of laches, that the final mining tax lists were prepared in accordance with the 1906 Decree and other Decrees, and that there was no error apparent on the face of the record. The principal question for consideration was whether the tax levied for the years 1962 to 1966 was by authority of law in terms of Article 265 of the Constitution.
Finding of the Court:
The Court held that the tax levied for the years 1962 to 1966 was by authority of law in terms of Article 265 of the Constitution. The Court found that the 1958 Decree did not repeal the 1910 Decree, that the 1911 Decree did not apply to the territory, and that the 1906, 1910 and 1942 Decrees had been continued as the laws in force. The Court also found that the method of computation followed by the respondents had authority of law and that there was no contravention of Article 265 of the Constitution.
Issues: 1. Whether the 1958 Decree repealed the 1910 Decree? 2. Whether the 1911 Decree applied to the territory? 3. Whether the 1906, 1910 and 1942 Decrees had been continued as the laws in force? 4. Whether the method of computation followed by the respondents had authority of law? 5. Whether there was any contravention of Article 265 of the Constitution?
Ratio Decidendi: 1. The 1958 Decree did not repeal the 1910 Decree by necessary implication, as the 1958 Decree did not contain that negative which rendered the 1910 Decree inconsistent. 2. The 1911 Decree did not apply to the territory, as Article 1 of the Decree provided that it applied to Portugal only and not to the territory. 3. The 1906, 1910 and 1942 Decrees had been continued as the laws in force, as Section 5(1) of the Goa, Daman and Diu (Administration) Act, 1962, continued the laws in force immediately before the 20th December, 1961, until amended or repealed by a competent legislature or other competent authority. 4. The method of computation followed by the respondents had authority of law, as the 1906, 1910 and 1942 Decrees had been continued as the laws in force and the method of taxation in terms of these Decrees remained unaffected. 5. There was no contravention of Article 265 of the Constitution, as the tax levied was in accordance with the provisions of law.
Final Decision: The petition was dismissed with costs.
2. The respondents in this case are - (1) The Union of India through the Administrator of Goa, Daman and Diu, Panaji; (2) The Government of Goa, Daman and Diu; (3) The Director of Industries and Mines, Government of Goa, Daman and Diu; and (4) the Commissioner for Revenue and Taxes, Government of Goa, Daman and Diu.
3. The case of the petitioner Xembu Govinda Sinai Cuvelcar and two others in Petition No. 14 is that they are the owners of some mining concessions. During the Portuguese regime these concessions were regulated by 'Regulamento das Minas' as approved by Decree-Law dated 20-9-1906, (hereinafter referred to as the 1906 decree'), The fixed tax known as 'Imposto fixo' under the 1906 Decree was 500 reis per hectare for mines containing non-precious stones or metals. By Decree Law dated 5th December, 1910. (hereinafter referred to as 'the 1910 Decree'), the Government of Portugal fixed the official rate of the Portuguese rupee as equivalent to 350 reis (hereinafter referred to as 'the Goan rupee'). In 'Estado de India', that is, Goa, Daman and Diu, (hereinafter referred to as 'the territory'), the Goan rupee was a legal tender in the territory. By Decree-Law of 1911 (hereinafter referred to as 'the 1911 Decree'), in metropolitan Portugal after 1911, the escudo was a legal tender with its sub-division into 100 centavos.
Before 1911 in metropolitan Portugal the escudo was a legal tender with its sub-division into 1000 reis. Reis ceased to be a legal tender in metropolitan Portugal after 1911. The tax liability levied was increased ten times by Decree Law No. 32251 dated 9th September, 1942, (hereinafter referred to as 'the 1942 Decree'). As the Goan rupee was a legal tender in the territory the tax in reis under the 1906 Decree was payable in the Goan rupees at the official rate of one Goan rupee as equivalent to 350 reis. in terms of the 1910 Decree. This was the position upon 1958 when the Government of Portugal promulgated 'Reforma monetaria do Estado da India' (Currency Reform Law) known as Decree-Law No. 41680 dated 16th June 1958, (hereinafter referred to as 'the 1958 Decree'). The Goan rupee ceased to be a legal tender with effect from 1st January, 1959, when the 1958 Decree was brought into force in the territory. Under the 1958 Decree, the escudo (hereinafter referred to as 'the Goan escudo'), became the monetary unit exchangeable at par with the escudo of metropolitan Portugal. The escudo then became a legal tender. 1 Goan rupee was exchangeable at the rate of 6 Goan escudos.
The territory was liberated with effect from 20th December 1961, but, before that date, for the years 1959 to 1961, the Portuguese Government published the final mining tax lists, as in the past. The tax liability in these lists was expressed in the Goan escudos. These lists, according to the petitioners, were prepared by merely multiplying the tax figures in the Goan rupees in the 1958 final mining tax list by six Goan escudos. The territory became part of India with effect from the 20th day of December, 1961, as a result of the Co
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