WESTON ELECTRONIKS Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) By writ petition No. 1033 of 1986 under Art. 32 of the Constitution the petitioners challenge the constitutional validity of Notifications Nos. STA. 1085/175/RES-8 dated 19 November, 1985 and No. STA. 1085/175/RES-8 dated 30 June, 1986 issued under the Bombay Sales Tax Act, 1959 whereby sales tax on the turnover of electronic goods manufactured within the State of Maharashtra has been levied at 4% only while sales tax on similar goods imported from outside the State, including such goods manufactured by the petitioners, is imposed at 15%.

(2.) The petitioners manufacture Television sets, Television cameras and Television monitors at various factories in Delhi and market them through several sales organisations throughout India, including the State of Maharashtra. Section 8 of the Bombay Sales Tax Act, 1959 provides for the levy of single point sales tax on the turnover of sales of goods specified in Schedule 'C'. Entry 91 of Part-II of Schedule 'C' specifies a rate of sales tax at 15% on Television sets, Television cameras and Television monitors. It appears that upto 19 November, 1985 the same rate of tax was applicable to the sale of Television sets whether manufactured within the State of Maharashtra or imported from outside the State. On 19 November, 1985, however, a Notification No. STA. 1085/175/RES-8 was issued under sub-s. (1) of S. 41 of the Act, which sub-section empowers the State Government to exempt any specified class of sales from payment of the whole or any part of tax payable under the Act. Thereby Entry 223 was added to the list of exemptions, providing for a rate of 4% as sales tax on Television sets, Television cameras and Television monitors manufactured in the State of Maharashtra. Subsequently, Notification No. STA.1085/175/RES-8 dated 30th June, 1986 was issued in somewhat different terms but maintaining the rate of sales tax at 4%.

(3.) The petitioners in Writ Petition No. 844 of 1986 are also manufacturers of Television sets, which are imported into the State of Maharashtra. They challenge the Notification dated 19 November, 1985 mentioned above, and on identical grounds.