1954 (7) TMI 18 - HC - VAT and Sales Tax

Summary

Issues:
Validity of Travancore-Cochin General Sales Tax Act, 1125 under Article 286(3) of the Constitution regarding imposition of tax on sales of jaggery.

Analysis:
The petitioner argued that the Travancore-Cochin General Sales Tax Act, 1125 is ultra vires of Article 286(3) as it imposes a tax on jaggery, declared essential by Parliament. Article 286(3) prohibits state laws taxing goods declared essential by Parliament without the President's assent. However, no such declaration existed before the Essential Goods Act, 1952. The Act declared certain goods essential but did not affect laws made before its commencement in 1952.

The petitioner also referenced the Essential Supplies Act, 1946, extended to Travancore-Cochin in 1950. This Act aimed to control production and distribution of commodities, not declare goods essential under Article 286(3). Even if jaggery fell under the Act's definition of "food stuffs," it did not equate to the specific declaration required by Article 286(3).

The judgment concluded that the petitioner's argument lacked merit. The Court found no prior declaration by Parliament regarding jaggery's essential status before the Essential Goods Act, 1952. The Essential Supplies Act, 1946 did not serve the purpose of declaring goods essential under Article 286(3). As no other points were raised, the petition was dismissed with costs imposed on the petitioner.