1968 (4) TMI 64 - SUPREME COURT

In notifying the rate provision was made for rates in respect of importers, the point of time being the import. As the import itself postulated movement of goods, the matter fell within Article 301 and as trade and commerce is declared to be free throughout the territory-of India, it became unfree by reason of the tax. The tax would therefore have ex facie offended Article 301. This could however be avoided if the tax was saved by Article 304(a).That required that similar goods manufactured or produced in Madhya Bharat had to bear an equal tax. Such equal tax was not imposed; hence the notifications were struck down as making discrimination and rendering trade and commerce unfree. No doubt the Madhya Bharat Sales Tax Act contained provisions for appeal, revision, rectification and reference to the High Court. The notifications being declared void the party could take advantage of the fact that tax was levied without a complete charging section. This affected the jurisdiction of the tax authorities because they could not even proceed to assess the party - Appeal allowed.