AIR 1980 SUPREME COURT 1468 ::1980 TAX. L. R. 1723 ::1980 SCC (Tax) 279 ::1980 (3) SCC 358 ::1980 S T I 293 (SC) ::(1980) 46 STC 164 ::46 STC 164 ::(1980) 3 SCR 625 ::1980 UPTC 1134

Supreme Court Of India

Hon'ble Judge(s): V. D. Tulzapurkar, D. A. Desai, A. P. Sen , JJJ

(A) Constitution of India , Art.286(2)— Central Sales Tax Act (74 of 1956) , S.5(3)— Validity - S. 5 (3) if beyond power or authority of Art. 286 (2) - Word 'deemed' in S. 5 (3) - Meaning of - Deeming provision in modern legislation - Provision is not made necessarily to create fiction - Word 'principle' - Connotation of - S. 5 (3) formulates principle and does not create legal fiction. Interpretation of Statutes - 'Deeming provision'.Words and Phrases - Word 'Deemed' - Meaning of.Words and Phrases - Word 'Principle' Connotation of. It is true that the word 'deemed' has been used in S. 5 (3) of the Central Sales Tax Act, 1956, but the same word has been used not merely in S. 5 (1) but also in the other two Sections 3 and 4 of Chapter II of the Central Sales Tax Act which has the heading "Formulations of Principles for determining when a sale or purchase of goods takes place in the course of inter-State trade or commerce or outside a State or in the course of export or import". The heading of Chapter II on the face of it suggests that what is done under Ss. 3, 4 and 5 including sub-sec. (3) is formulation of principles. Secondly, the word "deemed" is used a great deal in modern legislation in different senses and it is not that a deeming provision is every time made for the purpose of creating a fiction. A deeming provision might be made to inc....