TMI Blog2005 (2) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... granted to various items including generator in respect of tax payable under section 3 of the Kerala Tax on Entry of Goods into Local Areas Act, 1994 by dealers who are registered under the Kerala General Sales Tax Act, 1963 on which they are paying sales tax under section 5 of the Kerala General Sales Tax Act, 1963. Notification S.R.O. No. 949 of 2002 according to the petitioner, is unconstitutional, discriminatory and violative of articles 14, 19(1)(g), 301, 303 and 304 of the Constitution of India. 2.. Petitioner has undertaken various contracts in the State of Kerala for commissioning of diesel generating sets as per the specifications prescribed by Bharat Sanchar Nigam Ltd., and other companies. Petitioner brings diesel generating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 of the Kerala Tax on Entry of Goods into Local Areas Act, 1994 and in supersession of the Notification G.O. (P) No. 155/94/TD dated 25th November, 1994 as subsequently amended, in public interest exempted tax payable under section 3 of the Act by dealers who are registered under the Kerala General Sales Tax Act, 1963 on the import of goods specified in the Schedule to the Act, in respect of which they pay sales tax under section 5 of the Kerala General Sales Tax Act. Section 5 of the Kerala General Sales Tax Act provides for the imposition of sales tax on the sale of goods under different circumstances, provided under different Schedules to the Kerala General Sales Tax Act. Section 10 of the Kerala General Sales Tax Act enables the Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 5 of the Kerala General Sales Tax Act, 1963. Explanatory Note. (This does not form part of the notification, but is intended to indicate its general purport.) The Government had decided to withdraw the exemption, on the import of marble slabs, marble tiles, Cudappa stones and slabs, granite slabs and tiles, generator in respect of the tax payable under section 3 of the Kerala Tax on Entry of Goods into Local Areas Act, 1994 (15 of 1994), by dealers who are registered under the Kerala General Sales Tax Act, 1963 (15 of 1963) on which they are paying sales tax under section 5 of the Kerala General Sales Tax Act, 1963. This notification is intended to achieve the above object." Petitioner submitted the above notification is illegal an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... items in public interest. Counsel submitted State have necessarily to develop themselves economically so as to secure economic unity and to minimise the inequalities and imbalances between State and State and region and region. If the power to grant exemption has been conferred for achieving these objects on all States, it is not possible to assail these notifications as violative of article 304 and the article cannot be interpreted in isolation of other relevant articles. 6.. The Supreme Court in Shree Mahavir Oil Mills case [1997] 104 STC 148 with reference to Video Electronics Pvt. Ltd. case [1990] 77 STC 82 (SC); (1990) 3 SCC 87 held that the limited exemption carved out therein cannot be widened or expanded to cover cases of differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the explanatory note does disclose the public interest sought to be achieved by the notification. Article 304(a) does not prevent levy of tax on goods. What it prohibits is such levy of tax on goods as would result in discrimination between goods imported from other States and similar goods manufactured or produced within the State. The prevalence of differential rate of tax on sales of the same commodity cannot be regarded in isolation of the object to discriminate between one State and another. In Firm A.T.B. Mehtab Majid Co. case [1963] 14 STC 355 (SC) the court struck down the notification as violative of article 304(a) of the Constitution. The legality of the Notification S.R.O. No. 949 of 2002 has to be tested in the light of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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