9911796707
TMI Blog1977 (9) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... ountry liquor including pachwai was exempted from taxation under the said Act being included in its exemption list: item 25 of Schedule I. By the West Bengal Taxation Laws (Amendment) Act, 1972, section 3, sub-section (5), which came into force on 7th August, 1972, item No. 25 of Schedule I to the Bengal Finance (Sales Tax) Act, 1941, was deleted, as a result whereof sale of pachwai became liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. v. State of West Bengal'[1974] 34 S.T.C. 161., in which A. K. Sen, J., was of the opinion that this imposition of tax at 6 per cent against profit varying from 5.7 to 7.8 per cent on country spirit directly restricted and impeded the free flow of trade and the requirement under article 304(b) was not complied with. It was accordingly held by his Lordship that section 3(5) of the West Bengal T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deemed to have always been exclusive of any tax, surcharge, additional surcharge or any other impost on the sale or purchase of such intoxicant levied under any law for the time being in force." The Ordinance came into force on 6th June, 1974. The Ordinance thereafter was followed by the West Bengal Excise (Amendment) Act, 1974 (West Bengal Act 50 of 1974), whereby the provisions of the Ordinan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achwai dealers to recover the same from their customers. There was thus no restriction on the freedom of trade by the aforesaid legislation. The petitioner, however, contends that for the period from 7th August, 1972, to 6th June, 1974, he was not in a position to recover the taxes as the goods had already been sold and it was not possible for him to trace the customers and to realise the sales t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served that the legislature has power to impose tax, which includes within itself the power to tax retrospectively. It was further held that the fact that the retrospective levy did not afford any opportunity to the dealers to pass on the tax to the consumers had no relevance in considering the legislative competence of the levy. In view of the above proposition and in the context of the above leg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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