1962 (1) TMI 35

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..... - able restriction on the rights of the petitioner to carry on trade, but it was submitted that by this means the petitioner will not be able to compete with the manufacturers outside the State of Assam. Assuming that this is so, it is clear that goods which are purchased are put to different uses and if the Legislature thinks that certain classes of goods should pay the tax and not others that is a question of policy into which the courts cannot enter.
SINHA B.P., KAPUR J.L., HIDAYATULLAH M., SHAH J.C. AND MUDHOLKAR J.R. JJ. C.B. Agarwala, Senior Advocate, (R.L. Agarwala and P.C. Agarwala, advocates, with him), for the petitioner. Naunil Lal, Advocate, for the respondents. -------------------------------------------------- The Ju .....

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..... nufacturers who supply goods according to orders received and others who manufacture goods on their own account and sell them; (2) that the restriction imposed by the amending Act is excessive and violative of Article 19(1)(f); and (3) that the refusal to amend the registration certificate by not reinstating the articles mentioned above affects the rights of the petitioner company under Article 19(1)(f). For the purpose of deciding these questions it is necessary to refer to the scheme of the Assam Sales Tax Act, 1947 (Act XVII of 1947). By section 2 (2)(a)(b) of that Act "contract" is defined as: "2. In this Act, unless there is anything repugnant in the subject or context,- (2) 'contract' means any agreement for carrying out for .....

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..... as being intended by him for use in manufacture or production of any goods for sale" has now been omitted. The argument raised was that by the omission of sub-clause (b) discrimination was intended as between materials which were to be used for manufacture of goods and to be sold on their own account by the petitioner company and materials which were purchased for use in the execution of any contract. It was also contended that the object of the amendment of the Sales Tax Act was to prevent evasion of sales tax by manufacturing goods and sending them out of the State and therefore that object could have been achieved by taxing only those materials which were so intended. The amending Act is really a part of the general Sales Tax Act of th .....

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