TMI Blog1991 (12) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... represent the association. Second and third petitioners are members of the association. They are also dealers registered under the Kerala General Sales Tax Act, 1963. 4.. In the budget speech made by the Finance Minister while presenting the budget for the year 1989-90, proposal was made to give exemption for the goods specified from payment of sales tax on the ground of public interest. Accordingly S.R.O. 504/89 was issued. By that, a general exemption in respect of tax payable on the sale of poultry feed and cattle-feed was granted. Subsequently Government issued S.R.O. 132/90 on 2nd February, 1990. It provided for exemption in respect of tax payable on the sale of manufactured poultry feed and cattle-feed among other things for the period commencing from 1st April, 1989 and ending with 31st March, 1990. It provided that tax, if any collected, should be paid over to the Government. Later, on 28th March, 1990, Government issued S.R.O. 467/90 amending S.R.O. 132/90. The amendment was to extend the period of the operation of S.R.O. 132/90 till March 31, 1991. Still later Government issued exhibit P1, S.R.O. 432/91 dated March 30, 1991. As per that notification, exemption in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the Board, in the sale of cattle-feed because the Board will be selling cattle-feed at a lesser price. Petitioners again attack exhibit P1 notification, which confers benefits to the milk producers' co-operative societies. The sales of cattle feed by the milk producers' co-operative societies are exempt from sales tax. This exemption will also be against the provisions contained in article 301 read with article 304(a) of the Constitution. 7.. Shri N.N. Divakaran Pillai, learned Special Government Pleader, placed before court Notification dated 2nd February, 1990. As per that notification, S.R.O. 131/90 was issued in exercise of the powers under section 10 of the Kerala General Sales Tax Act, 1963. That notification amended S.R.O. 504/89 by omitting item 6, poultry feed and cattle-feed, from S.R.O. 504/89. S.R.O. 131/90 specifically amends S.R.O. 504/89 with effect from 2nd February, 1990. Consequently S.R.O. 504/89 in so far as it related to poultry feed and cattle-feed can have no effect with effect from 2nd February, 1990. Therefore the petitioners are not entitled to claim the benefit of S.R.O. 504/89. The result is the sale of poultry feed and cattle-feed is exigible to ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e milk producers' co-operative societies. It is a part of the operation flood. Can the concessions shown to the Board or the societies be treated as violative of the provisions contained in article 301 read with article 304(a) of the Constitution? 10.. In Atiabari Tea Co. Ltd. v. State of Assam AIR 1961 SC 232; [1961] 1 SCR 809, Gajendragadkar, J., (as his Lordship then was) speaking for the Bench observed: "In construing article 301 we must, therefore, have regard to the general scheme of our Constitution as well as the particular provisions in regard to taxing laws. The construction of article 301 should not be determined on a purely academic or doctrinaire considerations; in construing the said article we must adopt a realistic approach and bear in mind the essential features of the separation of powers on which our Constitution rests. It is a Federal Constitution which we are interpreting, and so the impact of article 301 must be judged accordingly. Besides, it is not irrelevant to remember in this connection that the article we are construing imposes a constitutional limitation on the power of the Parliament and State Legislatures to levy taxes, and generally, but for such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... understood and construed. Constitution is a living organism and the latent meaning of the expressions used can be given effect to only if a particular situation arises. It is not that with changing times the meaning changes but changing times illustrate and illuminate the meaning of the expressions used. The connotation of the expressions used takes its shape and colour in evolving dynamic situations. A backward State or a disturbed State cannot with parity engage in competition with advanced or developed States. Even within a State, there are often backward areas which can be developed only if some special incentives are granted. If the incentives in the form of subsidies or grant are given to any part or unit of a State so that it may come out of its limping or infancy to compete as equals with others, that, in our opinion, does not and cannot contravene the spirit and the letter of Part XIII of the Constitution. However, this is permissible only if there is a valid reason, that is to say, if there are justifiable and rational reasons for differentiation." 11.. When exhibit P1 is examined in the light of the principles stated by their Lordships of the Supreme Court and where th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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