1995 (4) TMI 281 - AT - VAT and Sales Tax

Summary

Issues:
Discriminatory tax rates on TV sets imported from outside West Bengal compared to those manufactured within the state.
Constitutional validity of Notification No. 1022 dated March 29, 1984, under the West Bengal Sales Tax Act, 1954.
Applicability of articles 14, 19(1)(g), 301, and 304(a) of the Constitution of India in the case.
Jurisdiction of the West Bengal Taxation Tribunal over the matter.

Analysis:
The case before the West Bengal Taxation Tribunal involved a challenge to the discriminatory tax rates imposed on TV sets imported from outside West Bengal compared to those manufactured within the state. The applicant argued that the assessments made based on Notification No. 1022 dated March 29, 1984, were in violation of constitutional provisions, specifically articles 14, 19(1)(g), 301, and 304(a) of the Constitution of India. The Tribunal noted that the jurisdiction of the High Court had been barred, and the matter fell within the exclusive jurisdiction of the Tribunal.

The applicant contended that the impugned notification prescribing discriminatory tax rates was invalid and unconstitutional. Citing relevant legal precedents, including judgments by the Supreme Court, the applicant argued that the differentiation in tax rates for imported TV sets and those manufactured within West Bengal was unconstitutional. The State Representative, on the other hand, relied on Supreme Court decisions to support the validity of the notification.

The Tribunal referred to the Supreme Court's decision in Lakshman v. State of Madhya Pradesh and other cases, where it was held that levying higher rates on goods imported from outside a state was unconstitutional under articles 301, 303(1), and 304(a) of the Constitution. Considering the arguments and legal precedents, the Tribunal concluded that the impugned Notification No. 1022 dated March 29, 1984, was unconstitutional and in violation of the Constitution of India. Therefore, the assessments made at the higher tax rate on imported TV sets were deemed invalid and unconstitutional.

In its final judgment, the Tribunal allowed the application, quashed the impugned notification levying a higher tax rate on imported TV sets, and set aside the assessment orders and appellate orders related to the case. The Tribunal disposed of the main application without any costs, thereby upholding the applicant's challenge to the discriminatory tax rates and declaring them unconstitutional.