9911796707
TMI Blog1987 (6) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... e State Government exempting from payment of tax the sales of the class of goods specified in column (1) of the schedule given below the notification, to the extent specified in column (2), for the period specified in column (3) of the said schedule, subject to the restrictions and conditions specified in column (4) thereof. Item 1, mentioned in the schedule, in the category of class of goods, is shown as "footwear made of rubber or plastic". The whole of tax under section 6 of the Act is shown the extent of exemption in column (2), whereas the period of exemption in column (3) is stated to be from 1st April, 1981, to 31st March, 1982 (both days inclusive). We are informed that this period has been enhanced from time to time. In column (4), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, which militate against the purpose for which exemption has been granted and have indeed the effect of defeating that purpose to a large extent, they cannot be upheld, if no reasonable justification is forthcoming for introducing such restrictions or conditions, which indeed render it arbitrary. Sub-section (1) of section 12 of the Act read as hereunder: "12. Saving.-(1) The State Government may, by notification and subject to such restrictions and conditions as may be specified therein, exempt whether prospectively or retrospectively, in whole or in part- (i) any class of dealers or any goods or class of goods from the payment of tax under this Act for such period as may be specified in the notification; (ii) any dealer or class of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iction can be challenged on the ground that it is arbitrary and defeats the purpose for which exemption with regard to goods or class of goods concerned was granted. Even from the plain language of the impugned notification, in the instant case, it is apparent that the exemption from payment of tax has not been granted to a class of dealers but has been granted in respect of a class of goods, namely, footwear made of rubber or plastic, the sale price of which does not exceed Rs. 10 per pair. 4.. It has been urged by the learned counsel for the petitioners that on reading the notification as a whole, there seems to be no doubt that the purpose of granting exemption was for the benefit of the consumers, who could not afford to purchase foot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hops containing all necessary items, which are used by such persons. These dealers will obviously not fall under the category of dealers, who deal exclusively in footwear made of rubber or plastic. 5.. Consequently, if a poor labourer, for whose benefit exemption has been granted, has to purchase a footwear in regard to which exemption has been granted, from one of such shops, he will have to pay sales tax, inasmuch as the dealer from whom he purchases it is not a dealer exclusively in footwear made of rubber and plastic. To find out such a dealer the poor labourer may have to travel to the city and in the process may have to spend much more than the amount of sales tax, the exemption of which has been granted. The purpose sought to be ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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