L M S SADAK THAMBY AND COMPANY MADRAS I Vs. APPELLATE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES I MADRAS 13

JUDGEMENT

(1.) IN this Batch of writ petitions the substantial question raised is about the validity of serial No. 7 (b) in the Second Schedule to the madras General Sales Tax Act, 1959, and in particular it is stated that the parenthesis included in the brackets therein, in juxta-position to the relevant constitutional provisions, is void, ultra vires and illegal. It is sufficient if the facts in one writ petition are noticed and the contentions of the counsel dealt with so as to answer the query posed. We shall therefore proceed to state the facts in W. P. No. 927 of 1967 which are illustrative of the dealings of all the petitioners in this batch of writ petitions.

(2.) THE petitioner is a firm carrying on business in hides and skins. THE firm also sells tanned hides and skins processed from raw skins purchased by them locally and outside the State. Hides and skins, whether in raw or in tanned state, have been declared to be goods of special importance under section 14 of the Central Sales Tax Act. Article 286 (3) of the constitution of India envisages that any law of a State in so far as it imposes or authorises the imposition of tax on the sale or purchase of declared goods shall be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify. Section 15, while enumerating such condition ore restriction referred to in article 286 (3) of the Constitution, authorises the State to levy such tax provided it shall not exceed two per cent of the sale or purchase price thereof, and such tax shall not be levied at more than one stage. In the present situation, however, it is three per cent. Following up the embargo imposed both under the Constitution and by the specific provisions referred to above under the Central Sales Tax Act, 1956, the Madras General Sales Tax Act, 1959, in section 4 thereto, provides : "notwithstanding anything contained in section 3, the tax under this Act shall be payable by a dealer on the sale or purchase inside the State of declared goods at the rite and only at the point specified against each in the Second Schedule on the turnover in such goods in each year, whatever be the quantum of turnover in that year. " *

(3.) THE Supreme Court proceeded to observe as follows : " THE fact that certain articles are mentioned under the same heading in a statute or the Constitution does not mean that they all constitute one commodity. THE inclusion of several articles under the same heading may be for a reason other than that the articles constitute one and the same thing.