Conditional single-point taxation cannot support an Article 304(a) discrimination claim against a general multi-point levy.

An unlicensed dealer in hides and skins could not invoke Article 304(a) by relying on the single-point taxation scheme under Rule 16. The concessional benefit under the Madras General Sales Tax Act, 1939, read with the relevant turnover rules, applied only to licensed dealers who satisfied the prescribed conditions. An unlicensed dealer remained outside that conditional scheme and was liable under the general multi-point levy on each transaction. Any distinction drawn in earlier cases arose from the structure of the single-point concession itself, not from the multi-point charge applicable here, so no actionable discrimination was made out.

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Issues: Whether an unlicensed dealer in hides and skins could invoke discrimination under Article 304(a) of the Constitution by relying on Rule 16 governing single-point taxation, and whether his assessment under the multi-point scheme was invalid.

Analysis: The scheme under Section 3 of the Madras General Sales Tax Act, 1939, read with Section 5, Section 6-A and Rule 16 of the Turnover Rules, granted the benefit of single-point taxation only to licensed dealers satisfying the prescribed conditions. An unlicensed dealer fell outside that concessional scheme and was liable to tax on each transaction under the general multi-point charging provision. The differential treatment found in earlier cases arose from the special structure of Rule 16 and the single-point system applicable to licensed dealers, not from the multi-point charge applicable to an unlicensed dealer. In such a case, there was no room to complain of discrimination under Article 304(a) on the basis of the single-point rules.

Conclusion: The assessment of the unlicensed dealer under the multi-point scheme was not invalid on the ground of discrimination, and the challenge failed.

Ratio Decidendi: A dealer who is outside a conditional concessional taxation scheme cannot rely on discrimination within that scheme to attack a general multi-point levy applicable to him.

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