SUDERSHAN KHANNA Vs. STATE OF JAMMU AND KASHMIR

JUDGEMENT

(1.) THE petitioner is a partner of the firm M/s. Air India Radio Corporation, City Chowk, Jammu. The firm is registered with the Sales Tax Department and carries on business of sales of electric appliances, sewing machines and radios. For the accounting year 1976-77 the assessing authority levied a surcharge of Rs. 1,730. 22 on the petitioner-firm. That levy is questioned by means of this writ petition.

(2.) THE levy of surcharge has been questioned, inter alia, on the grounds : (1) that section 4-A of the Jammu and Kashmir General Sales Tax Act, 1962 as amended is violative of article 14 of the Constitution of India, (2) that section 4-A contravenes articles 19 (1) (f) and 19 (1) (g) of the Constitution of India, (3) that the levy of surcharge is a tax on the income and, therefore, suffers from the vice of double taxation, (4) that section 4-A is hit by article 276 (2) of the Constitution of India, for, the section does not limit the levy of surcharge to a maximum of Rs. 250 as provided under article 276 (2) of the Constitution of India, (5) that the levy of surcharge under section 4-A is unconstitutional, as it contravenes article 286 (3) of the Constitution of India read with section 15 of the Central Sales Tax Act, and (6) that in case of the petitioner-firm no finding was recorded by the assessing authority that the turnover of the firm for every year exceeded Rs. 2. 5 lacs before levying of surcharge under section 4-A.

(3.) WE have heard Mr. S. Dutt appearing for the assessing authority and Mr. A. Kapoor for the State of Jammu and Kashmir.