Taxing amendment and exemption withdrawal upheld, while eligibility certificate request required fresh reasoned reconsideration after hearing.

The constitutional challenge to the West Bengal Taxation Laws (Amendment) Act, 1987, which altered turnover-tax exemption, failed because the amendment was treated as within legislative taxing power and not invalid merely for curtailing earlier relief. The claim for immediate issue of an eligibility certificate and related declaration forms succeeded only to the extent that the tax authorities had not finally decided the matter in accordance with law; they were required to reconsider the request afresh, hear the petitioners, and pass a speaking and reasoned order. The writ petition therefore obtained limited relief on reconsideration, while the challenge to the amendment and the claimed tax immunity were rejected.

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Issues: (i) whether the West Bengal Taxation Laws (Amendment) Act, 1987, and the amendment affecting turnover-tax exemption were ultra vires the Constitution; (ii) whether the petitioners were entitled to immediate issue of an eligibility certificate and related declaration forms without fresh consideration by the tax authorities.

Issue (i): Whether the West Bengal Taxation Laws (Amendment) Act, 1987, and the amendment affecting turnover-tax exemption were ultra vires the Constitution.

Analysis: The challenge to the amendment was found to be unsustainable. The power to legislate on taxation, including modifications to exemption provisions, was held to be within legislative competence, and the amendment could not be struck down merely because it altered the scope of earlier relief. The Court rejected the contention that the amendment was unreasonable, arbitrary, or beyond taxing power.

Conclusion: The challenge to the validity of the amendment failed, and the petitioners were not entitled to a declaration that it was ultra vires.

Issue (ii): Whether the petitioners were entitled to immediate issue of an eligibility certificate and related declaration forms without fresh consideration by the tax authorities.

Analysis: On the eligibility certificate, the Court found that the matter had not been finally decided by the respondents in accordance with law. The authorities were required to consider the petitioners' claim afresh, afford an opportunity of hearing, and pass a speaking and reasoned order. The ancillary claim for declaration forms stood linked to the proper statutory consideration of eligibility.

Conclusion: The authorities were directed to reconsider the request for eligibility certificate and decide it by a reasoned order after hearing the petitioners.

Final Conclusion: The writ petition succeeded only to the limited extent of securing reconsideration of the eligibility-certificate request, while the constitutional challenge to the amendment and the claimed immunity from sales tax and turnover tax were rejected.

Ratio Decidendi: A court will not invalidate a taxing amendment merely because it withdraws or alters an exemption, and where entitlement to an eligibility certificate has not been finally adjudicated by the competent authority, the matter must be remitted for fresh, reasoned consideration after hearing the affected party.

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