9911796707
TMI Blog1971 (10) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals by certificate. They raise a common question of law for decision. The only contention arising for decision in these appeals is as to the vires of section 3-D(1) of the U.P. Sales Tax Act, 1948 (to be hereinafter referred to as the Act). The validity of that section has been assailed on two different grounds, viz., (1) that the power delegated to the executive under section 3-D(1) is excessive and as such bad in law, and (2) section 3-D infringes article 14 of the Constitution inasmuch as it discriminates between the registered dealers who purchase through the agency of licensed dealers and the registered dealers who purchase through other dealers. The appellants are dealers in rab. In respect of their dealings in rab, they have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t purchaser, and in every other case of a first purchase, made through the agency of a dealer, the dealer who is the agent shall be deemed to be the first purchaser." It is true that the power to fix a rate of tax is a legislative power but if the Legislature lays down the legislative policy and provides the necessary guidelines, that power can be delegated to the executive. Though a tax is levied primarily for the purpose of gathering revenue, in selecting the objects to be taxed and in determining the rate of tax, various economic and social aspects such as the availability of the goods, administrative convenience, the extent of evasion, the impact of tax levied on the various sections of the society, etc. have to be considered. In a mod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxation laws, such as the selection of persons on whom the tax is to be levied, the rate at which it is to be charged in respect of different classes of goods and the like." It was not contended before us that the power delegated to the executive to select the goods on which the purchase tax is to be levied was an excessive delegation nor was it contended that the power granted to the executive to determine the rate of tax by itself amounts to an excessive delegation. All that was said was that in empowering the Government to levy tax on goods other than foodgrains at a rate not exceeding 5 paise in a rupee, the Legislature parted with one of its essential legislative functions as the power given to the executive is an unduly wide one. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a dealer, the dealer who is the agent would be deemed to be the first purchaser. This difference according to Mr. Goyal is discriminatory in character. He urged that there was no justification for making an agent liable to pay sales tax merely because he is an unlicensed agent. According to him there is no rational distinction between the purchases made through licensed dealers and those made through unlicensed dealers. The power to levy tax includes within itself the power to provide against evasion of tax. A licensed dealer has to function according to the conditions of his licence. He is bound to maintain true and correct accounts of his day to day transactions of sales and purchases of goods notified in sub-section (1) of section 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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