State sales tax surcharge upheld as within legislative competence; article 271 did not invalidate the Karnataka levy.

Section 6C of the Karnataka Sales Tax Act, 1957, which imposed a surcharge on tax payable under the Act, was examined against article 271 of the Constitution. The court reasoned that Parliament's power to levy surcharge for Union purposes under article 271 does not limit the State Legislature's plenary competence under article 246 over List II subjects. A surcharge on sales tax remains part of the State levy on sale or purchase and does not change its character into a Union tax. Section 6C, operating only on taxes imposed under the State Act, was therefore within Karnataka's legislative competence and constitutionally valid.

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Issues: Whether section 6C of the Karnataka Sales Tax Act, 1957, levying surcharge on tax payable under the Act, was unconstitutional as being violative of article 271 of the Constitution of India.

Analysis: Article 271 empowers Parliament to levy surcharge on duties and taxes for Union purposes, but that power does not curtail the State Legislature's plenary power under article 246 to legislate on matters in List II. A surcharge or additional tax imposed on sales tax remains a levy on sale or purchase and does not lose its character as a State tax. Section 6C operated only on taxes levied under the State Act and was therefore within the competence of the Karnataka Legislature.

Conclusion: Section 6C was held to be constitutionally valid and not violative of article 271; the challenge failed.

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