SOLIDAIRE INDIA LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE petitioner is a manufacturer of television sets, components, parts and accessories thereof having its factory at Madras. The television sets are sold under the brand-name "solidaire". The petitioner is a dealer registered in the State of Karnataka under the Karnataka Sales Tax Act, 1957 ("the Act" ).

(2.) THE notification dated June 20, 1986, issued by the Government in exercise of the powers conferred under section 8-A of the Act (annexure B) is challenged in this writ petition. The said notification reads thus :

(3.) THE discrimination brought about by the notifications issued by the Government of Karnataka levying higher rate of tax on television sets manufactured outside the State of Karnataka is challenged by the petitioner as violative of articles 301, 303 (1) and 304 (a) of the Constitution. The object of introducing of these articles in the Constitution is to preserve free-flow of inter-State trade and commerce as contained in article 301. Article 303 (1) imposes restrictions on the legislative powers of the Union and of the States with regard to trade and commerce. Article 304 imposes restrictions on the Legislature of a State not to discriminate between goods imported and goods manufactured or produced within the State while imposing tax under entry 54 of List II of the Seventh Schedule. The provisions inserted in these articles read together seek to prevent discrimination by applying different rates of tax between goods imported into the State and goods manufactured within the State.