UNION OF INDIA Vs. STATE OF ASSAM

JUDGEMENT

(1.) This is an application under Article 226 of the Constitution of India which has been filed by Union of India through the General Manager, N.F. Rly, Maligaon, Guwahati- 11, challenging the collection of sales tax by the State of Assam, stating inter-alia, that the same is violative of the provisions of Article 285(1) of the Constitution of India.

(2.) The petitioner runs a Departmental Canteen in various Railway Stations within the State of Assam through which foodstuff is supplied/sold, to the Railway employees and Railway passengers on No- Profit/No-Loss basis. According to tihe petitioners, the State of Assam was collecting sales tax from them on such sale of foodstuff and the amount of sales tax paid by them is as under:- <FRM>JUDGEMENT_25_GAULT2_2002Html1.htm</FRM>

(3.) That the amount of sales tax paid from April 1998 to July 1998 is shown below: Month Amount April 1998 22,214.00 May 1998 25,082.00 June 1998 22,986.00 July 1998 22,613.00 Total 92,895.00