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TMI Blog1990 (3) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... goods consumed by the affluent section of the society. With effect from June 1, 1987, Schedule IV was appended to the Act, enlisting therein certain goods used or consumed by a much more affluent section of the people, the rate of tax of such goods being fixed at 15 per cent. The applicants allege that the Legislature arbitrarily amended the said 1941 Act by the West Bengal Taxation Laws (Amendment) Act of 1989 and made sanitary wares and sanitary fittings exigible to sales tax at the rate of 15 per cent, forgetting the reasons and objects for imposing higher rate of tax on luxury goods. The Directorate of Commercial Taxes issued trade circular No. 1/89 dated April 3, 1989 and another circular under memo No. 6967(200)-CT dated May 9, 1989, stating the impact of the amendment and clarifying the expression "sanitary fittings". Representations, oral and in writing, were made by the trade circle to the authorities against imposition of such high rate of tax for these goods. Common people, it is alleged, will not be inclined to switch over to sanitary privies in place of service privies and certain fittings which are generally used in kitchens and lavatories could not be comprehended wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xercise of such duties, they are required to act in accordance with law. If an administrative circular is found to be contrary to law wholly or in part, the quasi-judicial authorities will have to ignore the whole or part of such circular, as the case may be. The applicants actually complain that some of the goods or articles mentioned in the clarificatory circular so as to be treated as included within the expression "sanitary wares and sanitary fittings" cannot be so included. This challenge or grievance appears to us to be premature and hypothetical. A court or a tribunal cannot be expected to sit in judgment over such a future issue as to which articles are or are not understood as sanitary wares and fittings in the trade or commercial circle, or, in other words, in the common parlance. It is not the business of the court to embark upon an enquiry as to whether a particular item falls within the impugned expression or not, merely on a hypothetical basis. If in a given case, a dispute arises, and the dispute is brought to court, the court then shall be required to adjudicate on the point. It is not the function of the court to prepare an exhaustive list of what are sanitary ware ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Legislature intended to raise more revenue for being used by the State which gives grants to municipalities, panchayats and other local bodies to look after the interest of the poorer sections of the society and also to the needs of improving the environment. Mr. Bose at a stage stated that these goods are needed for improvement of environment. 7.. Mr. Bose made a passing reference to article 48A of the Constitution regarding environment. The present case has, if any, a very remote relation with environmental problems, as envisaged in article 48A. In any case, we feel that the impugned enactment raising tax rate of sanitary wares and fittings has really very little to do in regard to article 48A. The argument was extremely farfetched. We, therefore, reject the contention that raising of tax in this case is visited with any problem from article 48A, which is one of the directive principles of State policy. 8.. Both the parties relied on the decision of the Supreme Court in the case of Arya Vaidya Pharmacy; reported in [1989] 73 STC 346. It was held in that case that it is open to the Legislature of the State Government, if it is authorised in that behalf by the Legislature, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught otherwise and ought not to have brought these impugned goods into the higher tax net. 9. Mr. Bose's reference to [1989] 73 STC 370 does not seem to help him. That was the case of Builders Association of India which was considering the constitutional provision in article 366(29A). Whatever was said in that decision regarding the basic need of building activity in the country was said in a different context and it is hardly possible to apply those observations in the facts of the present case. We therefore hold that the applicants do not derive any support from the said decision. 10.. While rendering judgment in the Pantiles case reported in [1991] 82 STC 260; [1989] 22 STA 214, we had rejected the contention of the applicants that since pantiles were used by poorer people, the goods should not be subjected to payment of tax. It was held by us that it was for the legislature to decide which class or persons should be exempted from payment of tax and the courts could not substitute their social and economic beliefs for the judgment of the legislative bodies. In the instant case there is no question of exemption. The question involved is whether the impugned goods ought to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... qualified as a separate class of goods. Now the next point to be seen is whether there is a rational nexus with the object sought to be achieved. The impugned enactment seeks to raise additional revenue by imposing tax at the rate of 16 per cent on these goods. The need of the State to have more revenue for the public good or in the general public interest is too obvious to be said. Accordingly, there is a rational nexus of the measure complained against with the object sought to be achieved by the impugned law. The object is to raise more revenue for better functioning of the State in the interest of common good. 13.. In the context of our views as above, we hold that there is no hostile discrimination, no unreasonable discrimination and no violation of article 14 in the impugned amendment of section 5(1)(d1) of the Bengal Finance (Sales Tax) Act, 1941, by which sanitary wares and sanitary fittings were included in Schedule IV to be taxed at the higher rate of 15 per cent with effect from April 1, 1989. As a result, the application fails and is dismissed without costs. B.C. CHAKRABARTI (Chairman).-I agree. P.C. BANERJI (Technical Member).-I agree. Application dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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