Valid fiscal classification upheld: ginger excluded from vegetable tax exemption, and interstate sale claim left for tax authorities.

The exclusion of ginger from the sales tax exemption for vegetables under the Assam General Sales Tax Act, 1993 was upheld as a valid fiscal classification, since the Legislature could choose which goods to exempt and wide latitude applies in tax classification unless it is manifestly unreasonable or arbitrary. The specific exception of ginger, onion, garlic, spices and condiments from the exempt category was therefore not violative of article 14. The argument based on article 286 did not invalidate the levy, because any dispute as to whether the sales occurred outside the State was a factual matter for the taxing authority, not a ground to strike down the statute.

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Issues: Whether the exclusion of ginger from the exemption granted to vegetables under the Assam General Sales Tax Act, 1993 was arbitrary or violative of the Constitution, and whether the levy could be avoided on the plea that the sales took place outside the State.

Analysis: The legislative competence to levy tax on sale of goods within the State was not in dispute, and the Legislature was entitled to select the goods to be taxed and the goods to be exempted. The exemption scheme under section 9 of the Assam General Sales Tax Act, 1993 expressly covered vegetables but specifically excepted ginger, onion, garlic, spices and condiments. In fiscal legislation, wide latitude is allowed in classification, and interference is justified only where the classification is shown to be manifestly unreasonable or arbitrary. The Court also held that the plea based on article 286 could not invalidate the statute itself, since any factual issue as to where the sale occurred was a matter for the taxing authority.

Conclusion: The exclusion of ginger from the exempted category was held to be a valid classification and not violative of article 14, and the writ petition failed.

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