1989 (8) TMI 332

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of interim order passed on the said writ application. The prayer for extension was allowed till disposal of the main application and the case [RN-333(T) of 1989], for all practical purposes, stood disposed of.   2.. The case of the applicant in RN-384(T) of 1989 relates to imposition of turnover tax by insertion of section 6B of the Bengal Finance (Sales Tax) Act, 1941 (hereinafter called "the BFST Act, 1941"). The levy of turnover tax has been challenged as void, ultra vires the Constitution and for incompetence of the State Legislature to impose the said tax. It is also alleged that the provision is violative of the fundamental rights guaranteed under article 14 of the Constitution and amounts to an unreasonable restriction upon ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on income and more particularly so because the applicant could not pass on this tax to the purchasers; (2) that it is a provision violative of article 301 of the Constitution read with article 304(b). It appears that both the points now urged before us were placed before the High Court which carefully considered the points and we respectfully agree with the views expressed therein. It was specifically found that turnover tax is not a tax on income. The contention of Mr. Saraf is that the provisions introduced by the amendment of 1979, violate the provisions of the article 301 of the Constitution of India, and was not in terms considered by the Honourable High Court. The proposition also does not appear to be correct. It was held in th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rein the petitioners challenged the validity of the levy of cess in respect of tea estates under the West Bengal Rural Employment and Production Act, 1976. The Act suffered amendments in 1981 and 1982 and it was held that the amendments so far as they purport to relate to tea estates, are unconstitutional and void. The decision was rendered in the context of tea estates engaged in the business of despatch of tea and the cess payable in terms of the Act by virtue of the amended provisions in 1981 and 1982. In substance, it was found that the impugned levy was a levy in respect of despatches of tea and not in respect of tea estates. In the present case, the contention of the petitioner is not that the turnover tax really amounts to a tax on d....