Expanded sales tax definition upheld for photo-processing activity; writ review cannot re-assess tax enforcement merits absent infirmity.

The Forty-sixth Amendment and the amended definition of "business" under the Meghalaya Finance (Sales Tax) Act expanded taxable transactions so that transfer of property in goods involved in execution of a works contract is treated as a sale. Applying that framework, the Gauhati HC held that the petitioner's photo-processing activity fell within the enlarged statutory concept of business and could be subjected to tax enforcement. The Court also held that judicial review under Article 226 does not permit re-appreciation of the tax authority's merits absent a jurisdictional or procedural infirmity. The impugned check-post endorsements and communications were therefore within jurisdiction and the writ challenge failed.

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Issues: Whether the impugned check-post endorsements and communications under the Meghalaya sales tax law were without jurisdiction on the ground that the petitioner's photo-processing activity was not a taxable sale or business.

Analysis: The dispute turned on the effect of the Forty-sixth Amendment to the Constitution and the amended definition of "business" under the Meghalaya Finance (Sales Tax) Act, 1956. The legal position after Article 366(29A)(b) is that transfer of property in goods involved in the execution of a works contract is deemed to be a sale. The Court held that the petitioner's activity fell within the enlarged statutory concept of business and that the taxing authorities were entitled to treat the transactions as taxable for the purpose of enforcing the Act. The Court also held that judicial review under Article 226 does not extend to re-appreciation of the merits of the tax authority's decision where no infirmity in the decision-making process is shown.

Conclusion: The challenge to the respondents' action failed. The impugned notices and endorsements were held to be within jurisdiction and the writ petition was dismissed.

Final Conclusion: The Court declined to interfere with the tax authorities' enforcement action, holding that the petitioner's activity was amenable to taxation under the amended statutory and constitutional framework.

Ratio Decidendi: After the Forty-sixth Amendment, a transaction involving transfer of property in goods in the execution of a works contract is legally treatable as a sale, and writ jurisdiction will not be used to overturn tax-enforcement action absent a jurisdictional or procedural infirmity.

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