INDIAN CHARGE CHROME LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) PETITIONER No. 1 is a company incorporated under the Indian Companies Act and petitioner No. 2 is its Director. They assail the validity of section 16A of the Orissa Sales Tax Act, 1947, as well as rules 94 and 94A of the Orissa Sales Tax Rules, 1947, inter alia, on the ground that providing check-posts tantamounts to obstruction in the free-flow of trade and is violative of article 301 of the Constitution. The petitioners also assail the validity of the order passed by the Sales Tax Officer at the check-gate on October 21, 1989.

(2.) THE case of the petitioners is that making a provision in the Orissa Sales Tax Act to have a check-gate though with the apparent object of checking evasion of tax, is a colourable exercise of legislative power and impedes the free-few of trade thereby attracting the provisions of article 301 of the Constitution and unless protected under article 304 of the Constitution, the provision is invalid. It is further contended that the said provision is hit by article 19(1)(g) of the Constitution as it amounts to a restraint on freedom of trade.

(3.) WE would now examine the rival submissions advanced at the Bar in the light of several case laws placed in course of hearing. But before entering into an investigation on those contentions, it would be appropriate to extract section 16A of the Orissa Sales Tax Act which was inserted by Orissa Act 15 of 1961 with effect from October 28, 1961 :