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TMI Blog2005 (1) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... s contend that the State Legislature was not competent to enact on entry 54 of the State List relating to imposition of tax on zarda in view of entry 92A of List I of the Seventh Schedule as well as article 286(3) of the Constitution. The petitioners have sought relief by way of a declaration that the said amendment was unconstitutional and ultra vires of articles 301, 304(b), 286(3), 245, 246, 265, 14 and 19(1)(g) of the Constitution and section 15 of the Central Sales Tax Act, 1956. Respondent Nos. 1 and 4, being the State of Tripura and the Commissioner of Taxes, Tripura, have contested the claim by filing counter-affidavit. None has appeared for respondent Nos. 1 and 3, the Union of India and the Chairman, Central Board of Excise, re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to enact on the subject-matters enumerated in the State List from article 246 of the Constitution, clause (3) of which reads as under: 246(3). Subject to clauses (1) and (2), the Legislature of any State has exclusive power to make laws for such State or any part thereof with respect to any of the matters enumerated in List II in the Seventh Schedule. The State List in entry 54 reads: 54. Taxes on the sale or purchase of goods other than newspapers, subject to the provisions of entry 92A of List I. Again, entry 92A of List I reads: 92A. Taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce. Article 286 imposes certain r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cco is occupied by the Union Legislature and, therefore, the State has no power to make any law. He gives emphasis on entry 52 of List I of the Seventh Schedule of the Constitution, which empowers the Union to take into control any industry after declaring by law to be expedient in the public interest. He derived support to bolster his contention from the decision of this court in All Assam Zarda Merchants Association v. State of Assam [1999] 115 STC 92 (Civil Rule No. 2827 of 1993 passed on June 4, 1999). In that case, this court in the Principal Seat had an occasion to examine the validity of imposition of sales tax on zarda by the Assam General Sales Tax Act, 1993. It was admitted by the State of Assam during argument that only for a per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited above, the imposition of sales tax by the State law of Assam was set aside only on the admission of the State that it was receiving the percentage of share of the additional duties under the Central Act. No such submission has been made on behalf of the State of Tripura that they are receiving both the share under the Central Act as well as the sales tax under the State Act. Therefore, the decision referred to by the learned counsel for the petitioner does not in any way support his contention that the imposition of the sales tax by the State law was ultra vires of the Constitution. It is, however, made clear that the State cannot derive both the benefits, namely the sales tax under the State Act and the share of additional excise duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the equality clause and article 19(1)(g) gives right to all citizens to practise any profession, or to carry on any occupation, trade or business. The petitioners cannot claim to be immune from the liability to pay tax under the impugned State enactment and nowhere in the writ petition have they explained how the aforesaid provisions of the Constitution have any bearing on the question of constitutional validity of the impugned legislation. For the reasons discussed above, I do not find any reason to declare the impugned enactment as invalid and ultra vires of any provision of the Constitution. However, it is noticed that the respondents in their joint counter-affidavit have conceded that the State Legislature is competent to enact a law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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