SHANTI FRAGRANCES Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, by filing this petition, has challenged the insertion of Entry No. 46 "Pan Masala and Gutka" by notification dated 31.3.2000 in the First Schedule of the Delhi Sales Tax Act, 1975 (hereinafter referred to as "the Act").

(2.) The incidence and levy of sales tax is provided in Chapter II of the Act. The rate of tax is provided in Section 4 of the Act and in view of Section 4(1 )(a) of the Act, the tax can be levied in respect of the goods specified in the First Schedule, at the rate of twelve paise in a rupee. Tax free goods are specified in section. 7 of the Act. Sub-section (1) of Section 7 of the Act reads as under:

(3.) 'Thus, it is clear that the items referred to in the First Schedule shall be subject to Sales Tax while those referred to in the Third Schedule will be tax free. It is also clear that the Lt. Governor is authorised to change the entries, as indicated in Section 7, that is to say, from tax free goods to taxed goods and vice versa.