RAMESH CHANDRA DEY Vs. STATE OF ASSAM

JUDGEMENT

(1.) THE petitioner is a wholesale dealer in tea, having his principal place of business at Silchar in the district of Cachar. He has been carrying on business since 1949, and got his name registered as a dealer on 14th January, 1950, as required by the Assam Sales Tax Act (hereinafter called the Act). In pursuit of his trade, the petitioner makes purchases of tea for resale both within and outside the State. The procedure normally adopted by the petitioner in making sales of tea outside the State is that the tea meant for resale is booked in the name of the petitioner, of which he is both the consignor and the consignee; when the tea arrives in Calcutta, the sample of tea is examined by the prospective purchaser, and if he approves, the bill of lading or the consignment note is endorsed in his favour on receipt of the price, and the purchaser then obtains delivery of the tea consigned. The prospective purchasers are registered dealers within their circles. As the law stood earlier, the petitioner was liable to pay sales tax only in the case of sales to non-registered dealers within the State; but section 15(1)(b) of the Act was amended by Amending Act IV of 1951. As a result of the amendment, the relevant portion of the section reads as follows :-

(2.) THE underlined words "in the State" were introduced in the Act in consequence of the said amendment. This was followed by a notification No. FMT 14/50/42, dated 22nd August, 1951, which also introduced corresponding changes in the rules inserting rules 79 and 80. Rule 80, inter alia, requires the dealer to submit a declaration in the following form :-

(3.) THE points, therefore, which arise for consideration are whether the said amendment of section 15 of the Act and the declaration required by rule 80 of the rules offends against the provisions of Article 286(2) of the Constitution and puts an unreasonable restraint on the fundamental right of the petitioner to pursue his lawful trade or avocation, as guaranteed by Article 19(1)(g) of the Constitution.