1957 (8) TMI 21 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of the Sales Tax Act No. XXIX of 1954 under the Constitution of India.
2. Exemption from paying sales tax on betel leaves under the said Act.

Analysis:

1. Validity of the Sales Tax Act:
The petitioners challenged the validity of the Sales Tax Act No. XXIX of 1954 on the grounds that it was not introduced on the recommendation of the Rajpramukh as required by the Constitution. However, the State of Rajasthan provided evidence that the Act received the assent of the President of India, rendering the objection baseless. The court highlighted Article 255 of the Constitution, emphasizing that subsequent assent by the President validates an Act even if the initial recommendation was not made. The court dismissed the objection, stating that the Act was valid.

2. Exemption from Sales Tax on Betel Leaves:
The petitioners argued that betel leaves should be exempt from sales tax under the Act as they fall under the category of "vegetables" or "plants" listed in the Schedule. The court analyzed the interpretation of the term "vegetables" in the Act, noting that it refers to herbaceous plants cultivated for food in a kitchen garden context. Referring to previous cases, the court held that betel leaves do not qualify as vegetables under the Act. The court also examined the term "plants" in the Schedule, concluding that betel leaves, which cannot be planted like shrubs or trees, do not fall under the exemption. The court rejected the petitioners' claim for exemption on betel leaves, stating that they are not covered by the Act's provisions.

In conclusion, the court dismissed both writ applications, upholding the validity of the Sales Tax Act No. XXIX of 1954 and ruling against the exemption of betel leaves from sales tax under the Act. The court emphasized that decisions on tax exemptions are legislative matters and cannot be determined by the judiciary based on extraneous considerations.