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2016 Supreme(MP) 990
IN THE HIGH COURT OF MADHYA PRADESH AT INDORE BENCH
P.K. Jaiswal, Vivek Rusia, JJ.
Bank Note Press, Dewas – Petitioner
Versus
Additional Assistant Commissioner of Commercial Tax, State of M.P & Others – Respondents
Writ Petition Nos. 3336 of 2009, 3337 of 2009, 3339 of 2009, 3340 of 2009, 1586 of 2010, 1587 of 2010, 1588 of 2010, 13385 of 2010, 13386 of 2010, 13387 of 2010, 8476 of 2012, 8477 of 2012, 8478 of 2012, 589 of 2014, 592 of 2014, 594 of 2014, 6808 of 2014, 6809 of 2014, 6810 of 2014, 1116 of 2015, 1119 of 2015, 1124 of 2015, 1731 of 2016, 1732 of 2016 and 1734 of 2016
Decided On : 03-10-2016
For the Petitioner:Shri. P.M. Choudhary, Advocate.
For the Respondent: Shri. Sunil Jain, A.A.G with Shri Rohit Mangal, GA.
Headnote:
Whether the activity of the petitioner of printing of currency notes for Government of India can be said to constitute a "Business" within the meaning of the provisions of M.P. Commercial Tax Act and whether qua such activity the petitioner can be said to be a "Dealer" liable to pay tax under the provisions of the said Act on the currency notes printed and supplied to Reserve Bank of India?
Fact of the Case:
Petitioner/Bank Note Press, Dewas is a unit of Security Printing & Minting Corporation of India Ltd. (hereinafter referred to as 'SPMCIL') which is a Corporation established and incorporated as a wholly owned company by Government of India and the same came into existence w.e.f. 10.02.2006 as a corporate body. The said Corporation was formed after amalgamation of nine units including four Mints, four presses and one security paper mill i.e. India Government Mint Mumbai), India Government Mint (Kolkata), India Government Mint (Hyderabad), India Government Mint (Noida), Currency Note Press (Nashik), Bank Note Press (Dewas), India Security Press 9 Nashik) and Security Printing Press which were earlier functioning under the Ministry of Finance, Govt. of India. SPMCIL is a company incorporated under the provisions of the Companies Act, 1956 with its headquarter at Jawahar Vyapar Bhawan, 16th Floor, Janapath, New Delhi. SPMCIL and the Govt. of India is engaged in the manufacture of security papers, minting of papers, printing currency and bank notes, non judicial stamp paper, postage stamp, travel documents etc. to meet the requirement of Reserve Bank of India for currency notes, coins, for State Government non-judicial stamp papers, for postal department stationery, stamps etc, for the Ministry of External Affairs, passport, VISA, stickers and other travel documents.
Finding of the Court:
The activity of printing and issue of currency notes being a sovereign function within the exclusive domain of the Union of India and the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1945 and such activity being strictly prohibited under the law, such activity cannot at all constitute a "Business".
Issues: 1. Whether the activity of the petitioner of printing of currency notes for Government of India can be said to constitute a "Business" within the meaning of the provisions of M.P. Commercial Tax Act and whether qua such activity the petitioner can be said to be a "Dealer" liable to pay tax under the provisions of the said Act on the currency notes printed and supplied to Reserve Bank of India? 2. The activity of printing and issue of currency notes being a sovereign function within the exclusive domain of the Union of India and the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1945 and such activity being strictly prohibited under the law, whether such activity can at all constitute a "Business"? 3. Whether the function performed by the petitioner prior to 10-02-2006 as a department of the Union of India and after 10.02.06 as a unit of Government owned corporation remaining the same mere would make the same activity a "Business" liable sales tax? 4. Whether the currency notes printed by petitioner for supply to the Reserve Bank of India constitute "Goods" in absence of currency being a freely tradable commodity or a merchandise capable of being dealt with in the market?
Ratio Decidendi: The main object of the company is to do the business of designing and printing of currency notes. When the company is engaged in the business as defined under section 2(d) of the VAT Act, 2002 then it acts as a "dealer" also as per section 2(i) of the Act because it is buying, selling and supplying of currency directly or otherwise and as the definition of the goods all kinds of movable property are goods. Though the word currency is not mentioned in the definition of 'goods' but the currency printed by the petitioner becomes a currency by virtue of section 22 of the RBI Act and becomes property of the Govt. of India, hence all the three ingredients are involved to bring the petitioner within the purview of Entry Tax.
Final Decision: All writ petitions are dismissed.
Vivek Rusia, J.
Petitioner has filed the present petition under Article 226 of the Constitution of India being aggrieved by the order of assessment passed by the Additional Assistant Commissioner, Commercial Tax, State of M.P by which assessment order has been issued under section 27(6) of the M.P. Commercial Tax Act, 1994 for the period from 10.02.2006 to 31.03.2006. Petitioner has filed 24 other connected writ petitions challenging the order passed by the assessing authority for different periods pertaining to Sales Tax, Entry Tax, Value Added Tax and Central Sales Tax. The list of writ petitions, nature of tax and period of assessment are as under :
| S. No. | Case No. | Nature of Tax | Period of assessment |
| 1 | W.P.NO.3336/09 | Sales Tax | 10.02.06 to 31.03.06 |
| 2 | W.P.No.3337/09 | Entry Tax | 10.02.06 to 23.07.06 |
| 3 | W.P.No.3339/09 | Entry Tax | 10.02.06 to 23.07.06 |
| 4 | W.P.No.3340/09 | VAT | 01/04/06 to 23.07.06 |
| 5 | W.P.No.1586/10 | CST | 24.07.06 to 31.03.07 |
| 6 | W.P.No.1587/10 | VAT | 24.07.06 to 31.03.07 |
| 7 | W.P.No.1588/10 | Entry Tax | 24.07.06 to 31.03.07 |
| 8 | W.P.No.13385/10 | VAT | 01.04.07 to 31.03.08 |
| 9 | W.P.No.13386/10 | CST | 01.04.07 to 31.03.08 |
| 10 | W.P.No.13387/10 | Entry Tax | 01.04.07 to 31.03.08 |
| 11 | W.P.No.8476/12 | Entry Tax | 01.04.09 to 31.03.10 |
| 12 | W.P.No.8477/12 | CST | 01.04.09 to 31.03.10 |
| 13 | W.P.No.8478/12 | VAT | 01.04.09 to 31.03.10 |
| 14 | W.P.No.589/14 | CST | 01.04.10 to 31.03.11 |
| 15 | W.P.No.594/14 | VAT | 01.04.10 to 31.03.11 |
| 16 | W.P.No.6810/14 | VAT | 01.04.11 to 31.03.12 |
| 17 | W.P.No.1116/15 | CST | 01.04.12 to 31.03.13 |
| 18 | W.P.No.1119/15 | VAT | 01.04.12 to 31.03.13 |
| 19 | W.P.no.1124/15 | Entry Tax | 01.04.12 to 31.03.13 |
| 20 | W.P.No.1731/16 | CST | 01.04.13 to 31.03.14 |
| 21 | W.P.No.1732/16 | Entry Tax | 01.04.13 to 31.03.14 |
| 22 | W.P.No.1734/16 | VAT | 01.04.13 to 31.03.14 |
| 23 | W.P.No.592/14 | Entry Tax | 10.02.10 to 31.03.11 |
| 24 | W.P.No.6808/14 | VAT | 10.02.11 to 31.03.12 |
| 25 | W.P.No.6809/14 | CST | 10.02.11 to 31.03.12 |
2. All these writ petitions are being decided by a common order because common questions of law have been raised by the petitioner in all these writ petitions which are as under:
1. Whether the activity of the petitioner of printing of currency notes for Government of India can be said to constitute a "Business" within the meaning of the provisions of M.P. Commercial Tax Act and whether qua such activity the petitioner can be said to be a "Dealer" liable to pay tax under the provisions of the said Act on the currency notes printed and supplied to Reserve Bank of India?
2. The activity of printing and issue of currency notes being a sovereign function within the exclusive domain of the Union of India and the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1945 and such activity being strictly prohibited under the law, whether such activity can at all constitute a "Business"?
3. Whether the function performed by the petitioner prior to 10-02-2006 as a department of the Union of India and after 10.02.06 as a unit of Government owned corporation remaining the same mere would make the same activity a "Business" liable sales tax?
4. Whether the currency notes printed by petitioner for supply to the Reserve Bank of India constitute "Goods" in absence of currency being a freely tradable commodity or a merchandise capable of being dealt w
