TMI Blog1972 (8) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... la General Sales Tax Act, 1963, read with rule 6, sub-rule (1), of the Kerala General Sales Tax Rules, 1963. Since the appellant did not comply with exhibit P3, the Sales Tax Officer issued exhibit P4 notice informing him that prosecution under section 46(2)(e) of the Kerala General Sales Tax Act, 1963, will be launched against him. 3.. The appellant, therefore, filed the petition under article 226 of the Constitution to quash exhibits P3 and P4 on the ground that sections 14(4) and 46(2)(e) of the Kerala General Sales Tax Act, 1963, and rule 6 of the Kerala General Sales Tax Rules are violative of articles 14, 19(1)(g) and 301 of the Constitution. A learned single judge dismissed the petition and his decision is challenged in the writ ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by certain dealers.-(1) Where the assessing authority is of the opinion that a dealer who has been registered or has applied for renewal of registration should furnish security or additional security for the proper payment of the tax payable by him, the said authority may direct him in writing to furnish within such time as may be fixed by the said authority security for an amount not exceeding one-half of the tax payable on the turnover of the dealer for the year as estimated by it or three months' compounded amount in the case of dealers who have opted to pay tax under section 7. In making such estimate the said authority shall take into account the taxable turnover of the dealer, if any, during the preceding year, the trend of business a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if it appears to him to be necessary so to do for the proper realisation of the tax levied under this Act, may impose for reasons to be recorded in writing as a condition of the issue of a registration certificate to a dealer or of the continuance, in effect, of such a certificate issued to any dealer, a requirement that the dealer shall give security up to an amount and in the manner approved by the Commissioner for the payment of the tax for which he may be or become liable under this Act." After approving the decision of the Calcutta High Court in Durga Prosad Khaitan v. Commercial Tax Officer and Others(2), their Lordships of the Supreme Court observed: "........ the power to levy a tax includes the power to impose reasonable safeg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... To interpret article 301 of the Constitution, counsel for the appellant relied on section 92 of the Australian Constitution Act and the decisions based thereon especially Commonwealth of Australia v. Bank of New South Wales[1950] A.C. 235. In view of the recent pronouncements of the Supreme Court, we think it unnecessary to examine the decisions based on section 92 of the Australian Constitution Act. 8.. In Atiabari Tea Co. Ltd. v. State of AssamA.I.R. 1961 S.C. 232 at p. 254., Gajendragadkar, J., speaking for the majority pointed out that "in determining the limits of the width and amplitude of the freedom guaranteed by article 301 a rational and workable test to apply would be: Does the impugned restriction operate directly or immediate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iers or obstructions within the State as well as inter-State: all restrictions which directly and immediately affect the movement of trade are declared by article 301 to be ineffective. The extent to which article 301 operates to make trade and commerce free has been considered by this court in several cases." The levy of sales tax is for the raising of the general revenue of the State which is in the interests of the public. Section 14(4) is only a regulatory measure to ensure proper payment of sales tax. Probably that was the reason why counsel for the appellant did not contend that section 14(4) by itself is violative of article 301 of the Constitution. His submission was in view of the nature of the penalty imposed by section 46(2)(e) o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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