Taxing provision upheld where taxable event, liability, rate and levy measure are clearly ascertainable under the statute.

Section 5(4) of the Karnataka Sales Tax Act was challenged as vague and arbitrary, but the Court found the taxing scheme sufficiently clear. The definitions of "taxable turnover", "total turnover" and "turnover" under section 2 created no ambiguity, and the provision itself clearly identified the taxable event, the dealer liable to tax, the applicable rate and the measure of levy by reference to the Fourth Schedule. Applying the principle that a taxing provision is invalid only if the components of the levy are not clearly ascertainable, the Court rejected the Article 14 challenge. The associated assessment was therefore left undisturbed.

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Issues: Whether section 5(4) of the Karnataka Sales Tax Act, 1957 was unconstitutional for alleged vagueness and arbitrariness, and whether the assessment made under it could be struck down.

Analysis: The definitions of "taxable turnover", "total turnover" and "turnover" under section 2 did not create ambiguity. The challenge rested on the words "sale or purchase" in section 5(4), but the provision clearly fixed the taxable event, the dealer liable to tax, the rate and the measure of the levy by reference to the Fourth Schedule. The Court held that a taxing provision is invalid only if the components of the levy are not clearly ascertainable, and that test was not met here. The contention based on rule 6 was also rejected as lacking substance.

Conclusion: Section 5(4) was upheld as valid and not violative of Article 14 of the Constitution of India. The assessment based on that provision was not interfered with.

Ratio Decidendi: A taxing provision is not unconstitutional for vagueness or arbitrariness where it clearly identifies the taxable event, the person liable, the rate of tax and the measure of levy.

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