Fiscal classification of sugar candy upheld as a valid tax distinction, with no violation of equality or trade rights.

The State Legislature was competent to exclude sugar candy from the exempted list under the Assam General Sales Tax Act, 1993 because classification of goods for tax and exemption falls within the State's fiscal legislative field. The exclusion was upheld as valid since sugar candy was treated as a commercially distinct commodity obtained by a special process, not as an inseparable form of sugar. That classification was found non-arbitrary and therefore did not infringe Articles 14, 19 or 301 of the Constitution.

---

---

Issues: Whether the State Legislature was competent to exclude sugar candy from the exempted list under the Assam General Sales Tax Act, 1993, and whether such exclusion violated the petitioner's rights under Articles 14, 19 and 301 of the Constitution of India.

Analysis: The Act of 1993 came into force upon repeal of the earlier State sales tax enactments, and the power to determine taxable and exempted articles fell within the State's legislative field under Article 246 of the Constitution of India. In tax legislation, the Legislature is entitled to select the articles to be taxed or exempted and to adopt its own fiscal policy, provided the classification is not arbitrary. Sugar candy was treated as a distinct commercial item obtained by a special process and not as an inseparable form of sugar for exemption purposes. The exclusion, therefore, did not amount to unconstitutional discrimination or an impermissible restriction on trade.

Conclusion: The exclusion of sugar candy from the exempted list was within legislative competence and was not violative of Articles 14, 19 or 301 of the Constitution of India.

Final Conclusion: The writ challenge to the tax treatment of sugar candy failed, and the State's power to treat it as a taxable item was upheld.

Ratio Decidendi: In fiscal legislation, the competent Legislature has wide discretion to classify goods for tax and exemption, and a commodity that is commercially distinct may validly be excluded from an exempted category if the classification is not arbitrary or unconstitutional.

---