TMI Blog1995 (2) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... by railway or road into the Union Territory of Delhi from any place outside Delhi. Under the said provision, the Delhi terminal tax agency realised a sum of ₹ 2,95,396.01 for the years 1969, 1970 1971 as terminal tax from the petitioner on vanaspati products carried by railway and/or road into the Union Territory of Delhi. Alleging that section 178 of the Act directly and immediately impedes the movement of goods from one place to another, restricts trade, commerce and intercourse and also discriminates between goods manufactured within the Union Territory of Delhi and the goods manufactured outside the said territory, the appellant - company prayed for a declaration that section 178 of the Act is ultravires of Article 301 of the Constitution of India, and for the issuance of a writ of prohibition or direction directing the respondents to forebear from realising any terminal tax from the petitioner, and for a refund of the aforesaid sum of ₹ 2,95,396.01 realised by the respondents as terminal tax from the petitioner. The petitioner stated that the terminal tax chargeable under Section 178 was not referable to any service rendered or to be rendered by any railway or ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 178 of the Act contravenes Article 301 of the Constitution, it is saved by Article 302 and there is no infirmity as alleged. 4. It is only appropriate to quote Section 178 of the Act which is as follows: 178. Terminal tax on goods carried by railway or road. (1) On and from the date of the establishment of the Corporation under section 3, there shall be levied on all goods carried by railway or road into the Union Territory of Delhi from any place outside thereof, a terminal tax at the rates specified in the Tenth Schedule. 2. The Central Government may, by declaration in the Official Gazette, vary from time to time, the rates specified in that Schedule, in relation to any goods or classes of goods so, however, that where the rates are increased, the increased rate shall not be more tha n treble the rates so specified. 3.The Central Government may by Re notification declare that with effect from such date as may be specified in the notification, the terminal tax levied in relation to any goods or class of goods shall, for reasons specified in the notification, cease to be levied. The said legislation is one enacted by Parliament. Article 301 and 302 of the Constitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal principles. This rule is based on the assumption, judicially recognised and accepted, that the legislature understands and correctly appreciates the needs of its own people. its laws are directed to problems made manifest by experience and its discrimination are base on adequate grounds. The presumption of constitutionality is indeed so strong that in order to sustain it the Court may take into consideration matters of common knowledge matters of common reports the history of the times and may assume every state of facts which can be conceived existing at the time of legislation. Another rule of equal importance is that that its laws relating to economic activities should be viewed with greater latitude than laws touching civil rights such as freedom of speech religion etc. It has been said by no less a person than Holmes J., that the legislature should be allowed some play in the joints because it as to deal with complex problems which do not admits of solution through any doctrinaire or straight jacket formula and this is particularly true in case of legislation dealing with economic matters, where, having regard to the nature of the problems required to be dealt with, g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect or inconsequential impediment, by any legislative or executive action, infringement of the freedom envisaged by Article 301 can arise. Without anything more, a tax law, per se, may not impair the said freedom. At the same time, it should be stated that a fiscal measure is not outside the purview of Article 301 of the Constitution. It is unnecessary to refer to all the decisions on the point. We shall only refer to a few important decisions of this Court on this aspect-- Automobile Transport Lid. etc. v. State of Rajasthan Ors. (AIR 1962 SC 1406), Andhra Sugars Lid. anr. vs. State of Andhra Pradesh and- Ors. (AIR 1968 SC 599), State of Madras vs. N.K. Nataraja Mudaliar (AIR 1969 SC 147) and a recent decision which has surveyed the entire case law on the subject -M/s. Video Electronics Pvt. Ltd. v. State of Punjab anr. (AIR 1990 SC 820). 11. Even proceeding on the basis that section 178 of the Act directly immediately impedes the movement of the goods (vanaspati) from the State of Haryana into the Union Territory of Delhi, we are of the view that the statutory provision aforesaid is saved by Article 302 of the Constitution of India. It is true that a tax may in certain c ..... 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