1989 (5) TMI 50 - SC - Income Tax

Constitutional validity of the Expenditure-tax Act, 1987 challenged on lack of legislative competence and of violation of the rights under articles 14 and 19(1)(g) - Held that:- The submissions of the learned Attorney-General that the tax is essentially a tax on expenditure and not on luxuries or sale of goods failing within the State power, must, in our opinion, be accepted. As contended by the learned Attorney-General, the distinct aspect, namely, "the expenditure" aspect of the transaction falling within the Union power must be distinguished and the legislative competence to impose a tax thereon sustained. Contention (a) is, in our opinion, unsubstantial and, accordingly, fails.

The content of the expression "other similar services" following, as it does, the preceding expressions "by way of beauty parlour, health club, swimming pool or . . ." has a definite connotation in the interpretation of such words in such statutory contexts. The matter is one of construction as to whether any particular service falls within the section and not one of constitutionality.

A taxing statute is not, per se, a restriction of the freedom under article 19(1)(g). The policy of a tax, in its effectuation, might, of course, bring in some hardship in some individual cases. But that is inevitable, so long as law represents a process of abstraction from the generality of cases and reflects the highest common factor. Every cause, it is said, has its martyrs. Then again, the mere excessiveness of a tax or even the circumstance that its imposition might tend towards the diminution of the earnings or profits of the persons of incidence does not, per se, and without more, constitute violation of the rights under article 19(1)(g). Appeal dismissed.