TMI Blog1996 (12) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... n the raw material. This exemption is still available to re-rolled products which are manufactured within the State. No exception can be taken to this part of the notification. Only the portion of exemption notification which discriminates against goods manufactured outside the State violates the provisions of article 304(a). In fact the words denying this exemption to goods manufactured outside the State were expressly and specifically added to the original exemption notification by the amending G.O. Ms. No. 1373 of 28th August, 1981. It is this amendment alone, which is clearly severable, that offends article 304(a). It can, therefore, be struck down. The subsequent notification of 20th March, 1984 proceeds on the same basis. There is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n exemption notification issued under the Andhra Pradesh General Sales Tax Act, 1957 bearing G.O. Ms. No. 88, Revenue, dated 28th January, 1977 which came into effect from 1st of April, 1976, re-rolled finished products of steel sold in Andhra Pradesh were made exempt from tax payable under the Andhra Pradesh General Sales Tax Act provided tax had already been levied under the said Act on the sale or purchase of any of the materials specified in item No. 2 of the Third Schedule to the said Act which included the raw material purchased by the assessee. The relevant text of the exemption notification as amended by G.O. Ms. No. 2458, Revenue, dated 3rd June, 1980 and in force retrospectively from 1st of April, 1976 is as follows: "In exercise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-rolled finished products manufactured from iron and steel scrap on which tax has been paid under the said Act is granted only to those re-rolled finished products which are manufactured from steel plants-cum-re-rollers situated within the State of Andhra Pradesh and sold inside the State. The appellants have challenged both these notifications as being violative of article 304(a) of the Constitution of India. 7.. The appellants contend that in the impugned notifications there is a clear discrimination between the goods which have been manufactured in the State and goods which have been manufactured outside the State in levying tax under the Andhra Pradesh General Sales Tax Act, 1957. Article 304 of the Constitution is as follows: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contention of the appellant that such an imposition would violate article 304(a) of the Constitution and would be bad in law. 9.. This decision has been re-affirmed by this Court in the case of Andhra Steel Corporation v. Commissioner of Commercial Taxes in Karnataka [1990] 78 STC 243; (1990) Supp. SCC 617. In this case the appellant who was a registered dealer under the Karnataka Sales Tax Act purchased iron scrap from dealers inside and outside the State of Karnataka for the purpose of manufacturing iron ingots, steel rounds and tor-steel. These manufactured goods were sold mostly within the State. A provision in section 5(4) of the Karnataka Sales Tax Act which granted exemption to sales of finished goods manufactured out of locally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y v. United Motors (India) Ltd. [1953] 4 STC 133 (SC); [1953] SCR 1069 at 1097. If the taxing statute imposes tax on subjects which are divisible in their nature and if the covered subjects which are exempted by the Constitution are wrongly taxed, the entire taxing statute need not be declared as ultra vires because it is feasible to separate taxes levied on authorised subjects from those levied on exempt subjects and to exclude the latter in the assessment to tax. In such cases this Court has said the statute itself should be allowed to stand. The taxing authority can be prevented by injunction from imposing the tax on subjects exempted by the Constitution. In the present case the exemption notification as it originally stood exempted all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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