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TMI Blog1956 (11) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... at 4 times the cost of the mutton purchased. The learned counsel for the petitioner contended that the said multiple is arbitrary and is not supported by any reasonable basis. The Tribunal came to the conclusion, on the material placed before them, that, from 1st April, 1953, to 14th June, 1953, 2050 seers of mutton were purchased for Rs. 3072 working out an average roughly of 30 seers per day at Rs. 1-8-0 per seer. But, as there was no evidence of other purchases such as rice, vegetables, dhall, ghee, curd etc., which would be necessary to make a complete meal costing Rs. 1-4-0, the Tribunal estimated that four times the cost of the mutton purchased would represent the average sale proceeds per day, i.e., Rs. 180. On that footing, the net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estaurant would be charged at the rate of three pies for every rupee on such turnover. It is said that this discrimination between one class of dealers from another class is irrational and offends the fundamental right of the assessee to the equal protection of laws guaranteed by Article 14 of the Constitution. The counsel appearing for the State supports this apparent discrimination on the principle of reasonable classification. The principle of classification has been authoritatively restated by the Supreme Court in Budhan Chowdhry v. State of BiharA.I.R. 1955 S.C. 191. thus: "It is now well-established that while Article 14 forbids class legislation, it does not forbid reasonable classification for the purposes of legislation. In order, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, methods and even rates for taxation if it does so reasonably. The Constitution does not say how cases shall be decided. All it says is that the States shall not deny to any person within their jurisdiction equal protection of the laws. It does not say when persons are within the jurisdiction of a State or what are equal laws. As a consequence, the Supreme Court decides cases as it thinks they ought to be decided with no other mandate than one to decide. The Supreme Court has been practical and has permitted a very wide latitude in classification for taxation." For the same reasons, we should think that, even in India, a very wide latitude should be permitted in classification for the purpose of taxation. Another principle that should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l tax on the sale of goods in the State of Andhra. But every taxing legislation makes a genuine attempt to adjust the burden with a fair and reasonable degree of equality. It also aims to apportion the burden equitably on different categories of properties or persons with distinct economic characteristics. It is impossible in the nature of things to aim at absolute equality in the matter of taxation. The State resorts to the principle of classification in an attempt to harmonise the doctrine of equality with differences inherent in the categories of properties or persons assessed. In the present case, the object to provide for the levy of a general tax and to apportion the burden equitably between different categories of persons has a reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding houses and restaurants and other dealers in such articles and held that it was sufficient to deny the validity of the impugned provision. With great respect we cannot agree. In our view, the characteristics of the dealer covered by the proviso should be cumulatively considered and, if so looked at, the said characteristics will afford a reasonable basis of classification which has a rational nexus with the object sought to be achieved. We, therefore, hold that the classification is founded on intelligible differentia distinguishing dealers like the assessee and that it has a rational relation to the object sought to be achieved. In the result, the revision fails and is dismissed with costs. Advocate's fee Rs. 50. Petition dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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