1960 (9) TMI 94 - SC - VAT and Sales Tax

whether the impugned Act [Assam Taxation (on Goods Carried by Roads or Inland Waterways) Act, (Assam Act XIII of 1954)] infringes the provision of Part XIII of the Constitution, with particular reference Art. 301?

Held that:- On a careful review of the various Articles, in my judgment, by Part XIII, restrictions have been imposed upon the legislative power granted by Arts. 245, 246 and 248 and the lists in the seventh schedule to the Parliament and the State Legislatures and those restrictions include burdens of the nature of taxation. Therefore, the power to tax commercial intercourse vested by the legislative lists in the Parliament or the State Legislatures, is circumscribed by Part XIII of the Constitution and if the exercise of the power does not conform to the requirements of Part XIII, it would be regarded as invalid.

The Assam Taxation (on Goods carried by Roads or Inland Waters) Act, 1954, must be regarded a infringe the guarantee of freedom of trade and commerce under Art. 301, because the Bill moved in the Assembly had not received the assent of the President as required under Art. 304(b) proviso, and the Act has not been validated by the assent of the President under Art. 255(c). Appeal allowed.