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TMI Blog1961 (4) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... allegations made in regard to the exclusive user of Nicotiana Rustica are generally denied what is more the report of the Committee specifically points out that though not known to be used for biris, when they are cured in broken leaf grades they can be used with admixture with biri tobacco like Pandharpuri tobacco for imparting strength to biri mixtures, and so according to the Committee no generalisation in this matter is possible and it cannot be asserted that all the forms of this variety are incapable of use of biris. Besides, it would be quite possible for dealers in the said varieties of tobacco to send them to other parts of the country where they are used for the purpose of manufacturing biris. Therefore, the grievance made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undamental rights of the petitioner to carry on their trade and business of dealing in hooka and chewing tobacco. The attack against the validity of the impunged tariff item is based substantially on two grounds. It is urged that the rates imposed by the impugned item are excessive and they virtually destroy the petitioners trade and it is argued that the impugned item is based on unconditional discrimination. Mr. Mathur for the petitioner fairly conceded that he would not be able to substantiate the first ground of challenge and indeed it is obvious that a challenge to tax law on the mere ground that the tariff imposed by the tax law is heavy cannot be entertained. That leaves the question of discrimination alone to be considered in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or flue cured tobacco which is not otherwise specified; and Item (4) is concerned with tobacco other than flue cured and used for the manufacture of (a) cigarettes or (b) smoking mixtures for pipes and cigarettes. The tariff varies from Rs. 16.15 nP. per kilogram to Rs. 1.65 nP. per kilogram. That takes us to Item (5). This item deals with tobacco other than flue cured and not actually used for the manufacture of (a) cigarettes or (b) smoking mixtures for pipes and cigarettes or (c) biris. The fourth clause under this item is tobacco cured in whole leaf form and packed or tied in bundles, hanks or bunches or in the form of twists or coils. For tobacco falling under the clauses under Item (5) the tariff is Rs. 1.10 nP. per kilogram. Clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is used by all classes of people in various forms it is necessary to frame the tariff in such a way that the incidence of tax shall fall equitably on all classes of people using it. The report then points out that the Intention Tariff based on the principle of intention was found to be ineffective because the assessee's declaration of intended use left large room for evasion of tax. That is why the Intention Tariff was substituted by a flat rate of duty. By experience it was found that even this method was not very effective or equitable and then was adopted the capability tariff. Under this test the criterion of assessment was to be whether or not a particular specimen of tobacco was capable of use in biri manufacturing. If so capable it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sify specified varieties as solely chewing varieties are in whole leaf form and or cured by addition of moisture. Tobacco cured in whole leaf form the process of conversion into flakes causes much higher proportions to crumble into dust, rawa and other unsaleable forms. The Committee was conscious that the whole leaf varieties after suitable manipulation can be utilised for biri manufacturing purposes but it thought that this could be done only after converting them into graded flakes, and even thereafter only by admixture with other tobacco on a small localised scale. In regard to the broken leaf grades which the Committee recommended by permitting should be liable to assessment at the higher rate relief was recommended by permitting any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of biris, and with that object Clause (5) and Clause (6) have been devised. Therefore, in our opinion, the distinction between tobacco falling under Clause (5) and Clause (6) according to the report of the Committee, is so clear and unambiguous and its relation to the object intended by the imposition of tariff is so clearly reasonable that the attack against its validity on the ground of unconstitutional discrimination cannot be upheld. 5. There is one more point to which Mr. Mathur referred and which may be incidentally considered. Mr. Mathur contended that Nicotiana Rustica with which the petitioners deal is used exclusively for hooka and chewing in Uttar Pradesh. The Petitioner avers that the variety of Nicotiana R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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