M/s. Weston Electroniks and Anr. Vs. The State of Maharashtra and Anr.
EmailAppeal: Writ Petitions Nos. 1033 and 844 of 1986.
(Under Article 32 of the Constitution of India.)
(Under Article 32 of the Constitution of India.)
Petitioner: M/s. Weston Electroniks and Anr.
Respondent: The State of Maharashtra and Anr.
Apeal: Writ Petitions Nos. 1033 and 844 of 1986.
(Under Article 32 of the Constitution of India.)
(Under Article 32 of the Constitution of India.)
Judges: R.S. PATHAK,CJI. & RANGANATH MISRA, J.
Date of Judgment: Apr 29, 1988
Appearances:
Mr. Soli J. Sorabjee, Sr. Advocate, Ms. S. Relan, Mr. S.C. Dhande, and Ms. Rekha Pandey Advocates with him for the Petitioners.
Mr. S.B. Bhasme, Sr. Advocate, and Mr. M.A. Firoz, Advocate with him for the Petitioners in WP. No. 844/86.
Mr. G.A. Shah, Sr. Advocate, Mr. M.N. Shroff, and Mr. K.M. Muzammil Khan Advocates with him for the Respondents.
Head Note:
BOMBAY SALES TAX ACT, 1959:
Sections 8 and 41; Entries 91 and 223 of Part II of Schedule C – Notifications No.STA.1085/175/RES-8 dated 19-11-1985 and No.STA.1085/175/RES-8 dated 30-6-1986 – Constitution of India, 1950; Articles 301, 303(1) and 304(a) – Sales tax on Television sets etc. – State Govt. levying lower rate of tax on TV sets manufactured in the State than those imported from other States – Following the decision in JT 1988(2) SC 251, the two notifications imposing a lower rate of tax for TV sets etc. manufactured within the State quashed.
Petitions allowed.
Cases Reffered:
M/s. Weston Electroniks and Another v. The State of Gujarat and Another, JT 1988 (2) SC 251.
JUDGEMENT:
PATHAK, CJI.:
1. By writ petition No. 1033 of 1986 under Article 32 of the Constitution the petitioners challenge the constitutional validity of Notification Nos. STA.1085/175/RES-8 dated 19 November, 1985 and Nos.STA.1085/175/RES-8 dated 30th June, 1986 issued under the Bombay Sales Tax Act, 1959 whereby sales tax on the turnover of electronics goods manufactured within the State of Maharashtra has been levied at 4% only while sales tax on similar goods imported from outside the State, including such goods manufactured by the petitioners, is imposed at 15%.
2. The petitioners manufacture Television sets, Television cameras and Television monitors at various factories in Delhi and market them through several sales organisations throughout India, including the State of Maharashtra. Section 8 of the Bombay Sales Tax Act, 1959 provides for the levy of single point sales tax on the turnover of sales of goods specified in Schedule ‘C’. Entry 91 of Part-II of Schedule ‘C’ specifies a rate of sales tax at 15% on Television sets, Television cameras and Television monitors. It appears that upto 19 November, 1985 the same rate of tax was applicable to the sale of television sets whether manufactured within the State of Maharashtra or imported from outside the State. On 19 November, 1985, however, a Notification No.STA.1085/175/RES-8 was issued under sub-s. (1) of s.41 of the Act, which sub-section empowers the State Government to exempt any specified class of sales from payment of the whole or any part of tax payable under the Act. Thereby Entry 223 was added to the list of exemptions, providing for a rate of 4% as sales tax on Television sets, Television cameras and Television monitors manufactured in the State of Maharashtra. Subsequently, Notification No.STA.1085/175/RES-8 dated 30 June, 1986 was issued in somewhat different terms but maintaining the rate of sales tax at 4%.
3. The petitioners in Writ Petition No.844 of 1986 are also manufacturers of Television sets, which are imported into the State of Maharashtra. They challenge the Notification dated 19 November, 1985 mentioned above, and on identical grounds.
4. The petitioners contend that the two Notifications infringe Art. 301 and Cl.(1) of Art. 303 of the Constitution and are not protected by cl.(a) of Art. 304 of the Constitution. For the reasons set forth in our judgment in writ petition No.1032 of 1986, M/S. WESTON ELECTRONIKS AND ANOTHER V. THE STATE OF GUJARAT AND ANOTHER*, delivered today the Notifications are liable to be quashed.
5. Accordingly, the writ petitions are allowed, the Notifications No.STA.1085/175/RES-8 dated 19 November, 1985 and Nos.STA.1085/175/RES-8 dated 30 June, 1986 are quashed insofar as they impose a rate of 4% tax for Television sets & antennae, Television cameras, Television monitors and Components, Parts and accessories of any of them.
1. By writ petition No. 1033 of 1986 under Article 32 of the Constitution the petitioners challenge the constitutional validity of Notification Nos. STA.1085/175/RES-8 dated 19 November, 1985 and Nos.STA.1085/175/RES-8 dated 30th June, 1986 issued under the Bombay Sales Tax Act, 1959 whereby sales tax on the turnover of electronics goods manufactured within the State of Maharashtra has been levied at 4% only while sales tax on similar goods imported from outside the State, including such goods manufactured by the petitioners, is imposed at 15%.
2. The petitioners manufacture Television sets, Television cameras and Television monitors at various factories in Delhi and market them through several sales organisations throughout India, including the State of Maharashtra. Section 8 of the Bombay Sales Tax Act, 1959 provides for the levy of single point sales tax on the turnover of sales of goods specified in Schedule ‘C’. Entry 91 of Part-II of Schedule ‘C’ specifies a rate of sales tax at 15% on Television sets, Television cameras and Television monitors. It appears that upto 19 November, 1985 the same rate of tax was applicable to the sale of television sets whether manufactured within the State of Maharashtra or imported from outside the State. On 19 November, 1985, however, a Notification No.STA.1085/175/RES-8 was issued under sub-s. (1) of s.41 of the Act, which sub-section empowers the State Government to exempt any specified class of sales from payment of the whole or any part of tax payable under the Act. Thereby Entry 223 was added to the list of exemptions, providing for a rate of 4% as sales tax on Television sets, Television cameras and Television monitors manufactured in the State of Maharashtra. Subsequently, Notification No.STA.1085/175/RES-8 dated 30 June, 1986 was issued in somewhat different terms but maintaining the rate of sales tax at 4%.
3. The petitioners in Writ Petition No.844 of 1986 are also manufacturers of Television sets, which are imported into the State of Maharashtra. They challenge the Notification dated 19 November, 1985 mentioned above, and on identical grounds.
4. The petitioners contend that the two Notifications infringe Art. 301 and Cl.(1) of Art. 303 of the Constitution and are not protected by cl.(a) of Art. 304 of the Constitution. For the reasons set forth in our judgment in writ petition No.1032 of 1986, M/S. WESTON ELECTRONIKS AND ANOTHER V. THE STATE OF GUJARAT AND ANOTHER*, delivered today the Notifications are liable to be quashed.
5. Accordingly, the writ petitions are allowed, the Notifications No.STA.1085/175/RES-8 dated 19 November, 1985 and Nos.STA.1085/175/RES-8 dated 30 June, 1986 are quashed insofar as they impose a rate of 4% tax for Television sets & antennae, Television cameras, Television monitors and Components, Parts and accessories of any of them.
