Sales tax levy upheld despite constitutional challenge on legislative competence, repugnancy, discrimination, and trade freedom grounds.

The constitutional challenge to section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, as amended, failed because the levy was held consistent with article 286 of the Constitution and Entry 54 of List II of the Seventh Schedule. The Court also found no repugnancy with sections 3, 4 and 5 of the Central Sales Tax Act, and no basis for the claims of discrimination or infringement of freedom of trade and commerce. It accepted the High Court's reasoning on each objection and saw no reason to interfere, with the same conclusion supported by its contemporaneous decisions in connected matters.

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Issues: Whether the challenge to the validity of section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, 1947, as amended, and the consequential assessment order succeeded on grounds of legislative incompetence, repugnancy, discrimination, and infringement of the freedom of trade and commerce.

Analysis: The challenge turned on whether the State levy could survive scrutiny under article 286 of the Constitution of India, Entry 54 of List II of the Seventh Schedule to the Constitution of India, and the alleged inconsistency with sections 3, 4 and 5 of the Central Sales Tax Act. The Court accepted the reasoning and conclusions of the High Court, which had dealt with each constitutional objection in detail and had upheld the provision. The Court found no ground to interfere with that reasoning and also noted that the same conclusion followed from its contemporaneous decisions on the connected matters.

Conclusion: The constitutional challenge failed and the impugned levy and assessment were sustained.

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