MERTA TRADE AND INDUSTRIES Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) IN these three writ petitions, though multiple reliefs have been sought including declaration of `turn- over tax' imposed by the State by inserting Sec. 13-A in the Rajasthan Sales Tax Act, 1994 as ultra vires and unconstitutional but at the time of hearing, taking notice of the fact that competence of the State legislature to levy turn over tax has been upheld by the Supreme Entry 54 of List II (State List) in Schedule VII of the Constitution as an additional tax on sale or purchase of goods, the contentions have been confined to this extent that the impugned provisions are repugnant to Central Sales Tax Act because they do not restrict the `levy of tax' in the case of `turn over' relating to sale or purchase of goods which have been declared under Sec. 14 of the Central Sales Tax Act as of special importance in the course of interstate trade and commerce to the extent of rate until prescribed under Sec. 15 of the Central Sales Tax Act in aggregate, therefore, it can be subjected to tax at a rate in excess of the limit prescribed under Sec. 15 of the Central Sales Tax Act, 1956.

(2.) IN this connection, the learned counsel appearing for the petitioners placed reliance on clause (3) of Art. 286 of the Constitution of INdia which leaves it for the Parliament alone to prescribe maximum rate of tax at which sale or purchase of goods declared to be of special importance in the course of interstate trade and commerce.

(3.) WHILE not seriously joining the issue that looking to the nature of `turn-over' tax which has been declared by the Supreme Court as tax on sale or purchase of goods under Entry 54 of List- II of Schedule-VII of the Constitution and the provisions contained in Art. 286 (3) of the Constitution that any State legislation under Entry 54 of List-II of Schedule VII of the Constitution is subject to the limitations envisaged under Art. 286 (3) of the Constitution of India, it has been contended by the learned Additional Advocate General for the State that there is no real apprehension that while making assessment of `turn-over' tax, the Assessing Officer would be levying tax in contravention of the provisions of Sec. 15 of the Central Sales Tax Act, 1956 in respect of the `turn-over' falling under that clause.