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TMI Blog2009 (2) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... lative of articles 14, 19(1)(g) and 301 of the Constitution of India. The main contention raised before the learned single judge See page 104 supra. was that, since the above article was taxable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (in short, "the Act"), the State has no legislative competence to tax the above goods. The State can only claim a share in addition to the excise duty collected. The appellant/petitioner also relied on the observation of the Constitution Bench of the honourable Supreme Court in Godfrey Phillips India Ltd. v. State of U.P. [2005] 139 STC 537. The above contention alone was raised before us. The Second Schedule to the above Act deals with distribution of additional duties i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remises where the said goods were manufactured, stored or produced, or in any premises appurtenant thereto, duties of excise at the rate or rates specified in column (4) of the said Schedule. (2) The duties of excise referred to in sub-section (1) in respect of the goods specified therein shall be in additional to the duties of excise chargeable on such goods under the Central Excises and Salt Act, 1944, or any other law for the time being in force. (3) The provisions of the Central Excises and Salt Act, 1944, and the Rules made thereunder, including those relating to refunds and exemptions from duty, offences and penalties, shall, so far as may be, apply in relation to the levy and collection of the additional duties as they apply in rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r per cent of the sale or purchase price under section 15 of the Central Sales Tax Act, 1956." It shows that Parliament can limit the rates of sales tax which are otherwise within the exclusive competence of the State in view of article 286(3) of the Constitution. In the case of declared goods State can charge a maximum of up to four per cent of the sale or purchase price under section 15 of the Central Sales Tax Act, 1956. Thereafter, at paragraph 67, it is stated as follows: "67. No State can levy luxury tax on items covered by section 3 of the ADE Act in respect of goods for the same taxable event, i.e., goods stored on manufacture, just by describing the goods as luxury goods. The overlapping of the powers exercised under entry 84 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Sales Tax Act as provided under clause (29A) of article 366 in respect of the goods declared to be of public importance. The power of the State to charge sales tax on such goods taxable under the Act is already considered by various High Courts including this court. (See Nemichand Parasmal and Company v. Deputy Commercial Tax Officer, Evening Bazaar Assessment Circle, Madras [1984] 55 STC 47 (Mad), Prime Impex Limited v. Assistant Commissioner of Commercial Taxes [2002] 127 STC 23 (Cal) and Ateesee (Agro-Industrial Trading Corporation) v. State of Kerala [1978] 41 STC 1 (Ker); [1988] 38 ELT 618 (DB)(Ker)). The honourable Supreme Court considered the specific question in State of Bihar v. Bihar Chamber of Commerce [1996] 103 STC 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence to entry 54. The ADE Act is also not a law made under and with reference to article 252 of the Constitution, which article empowers the Parliament to make a law with respect to any matter mentioned in List II, if two or more States pass resolutions requesting the Parliament to make a law in that behalf. The impugned Act is also not relatable to any of the articles 249 to 253 which are in the nature of exceptions to the normal rule that Parliament can make no law with respect to the entries in List II. If so, it follows that the State Legislatures are not denuded or deprived of their power to make a law either with reference to entry 52 or with reference to entry 54 in List II. That power remains untouched and unaffected. All that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t by Sri Potti, it was open to the Kerala Legislature to decide-and it did so also-that on some items there should be one or other of the levies or both of them and to modify these levies depending upon its own financial exigencies. But these factual or periodical variations do not detract from the basic reality that the policy of sales tax levy on declared goods has to keep in view, and be influenced by, the provisions of the CST Act and the 1957 Act'." After detailed discussions and reference to various decisions, the honourable Supreme Court answered the question positively in favour of the Revenue. The State also has got a case that goods in question, covered under HSN code 5007, are not directly taxable under the Additional Duties ..... X X X X Extracts X X X X X X X X Extracts X X X X
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