RAJ KUMAR Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THESE writ petitions have been filed for declaring the Notification No. F. 4 (3) FD/gr. IV/89-12 dated March 23, 1989 issued under section 5, Rajasthan Sales Tax Act (hereinafter to be called "the RST Act") and Notification No. F. 4 (3)FD/gr. IV/79-2 dated March 5, 1979, as amended by Notification No. F. 4 (3)FD/gr. IV/79-34 dated February 26, 1980, issued under section 4 (2) of the RST Act as ultra vires of the Constitution, for quashing notices dated January 7, 1993 (annexure 3) issued under section 12 of the RST Act and for restraining the assessing authority (respondent No. 2) from reassessing the petitioners in pursuance of the notices, annexure 3. As the facts involved in these three writ petitions are similar and law involved is same, they are being disposed of by this common order.

(2.) THE case of the petitioners is that they carry on business of manufacture and sale of steel and wooden furniture, trunks and agricultural implements at Sri Ganganagar. THEy are registered dealers under the Central Sales Tax Act (in short, "the CST Act" and "the RST Act" ). THEy supply furniture and boxes to various departments of the Central Government located at Sri Ganganagar. Assessment orders were passed under section 10 of the RST Act in respect of the assessment year 1989-90. THEy have how received notices under section 12 of the RST Act for showing cause as to why reassessment be not made as in the earlier assessments sales tax had been calculated at lesser rate of 4 per cent than the prescribed rates of 10 per cent or 12 per cent.

(3.) STATE has discretion to prescribe different rates of tax for different goods and may also exempt any commodity. Article 14 of the Constitution is not attracted. It has been observed in Sita Ram Bishambhar Dayal v. STATE of U. P. [1972] 29 STC 206 (SC) at pages 207-208; AIR 1972 SC 1168, para 5, as follows : " It is true that the power to fix a rate of tax is a legislative power but if the Legislature lays down the legislative policy and provides the necessary guidelines, that power can be delegated to the executive. Though a tax is levied primarily for the purpose of gathering revenue, in selecting the objects to be taxed and in determining the rate of tax, various economic and social aspects such as the availability of the goods, administrative convenience, the extent of evasion, the impact of tax levied on the various sections of the society, etc. , have to be considered. In a modern society taxation is an instrument of planning. It can be used to achieve the economic and social goals of the STATE. For the reason the power to tax must be a flexible power. "