1991 (3) TMI 375

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....f Orissa in the Finance Department by Notification No. CTA-105/85-44887-F dated December 22, 1989, however, declared minerals subject to first point tax with effect from January 1, 1990. The effect of the notification is that the petitioner is required to pay at present 16 per cent tax while effecting purchases. It is not in a position to sell minerals to new industries without charging any tax, nor can it extend concessional rate of tax to old industries. It is also not in a position to collect tax from industries as section 25(1)(b) of the Act prohibits the same. The effect of the levy of the first point tax instead of the last point tax is that the business of the petitioner has been seriously affected, and its contention is that the sa....

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....triction operate directly or immediately on trade or its movement?.................... It is the free movement or the transport of goods from one part of the country to the other that is intended to be saved, and if any Act imposes any direct restrictions on the very movement of such goods, it attracts the provisions of article 301, and its validity can be sustained only if it satisfies the requirements of article 302 or article 304 of Part XIII." The aforesaid observation was quoted and relied on by another Constitution Bench in Andhra Sugars Ltd. v. State of Andhra Pradesh [1968] 21 STC 212 (SC); AIR 1968 SC 599 and recently by a Division Bench in Video Electronics Pvt. Ltd. v. State of Punjab [1990] 77 STC 82 (SC); AIR 1990 SC 820. 3....

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....atory tax might affect the freedom of trade. The present is not a case of discriminatory tax. 4.. As we are not satisfied about the violation of article 301 by the levy of first point tax, we cannot hold that the levy is unconstitutional merely because the effect of the same has been that the petitioner has been adversely affected. Shri Ray appearing for the petitioner, however, strenuously urges that as the trade of the petitioner has been left highly unprofitable because of the first point tax, the notification imposing this levy has to be regarded as violative of article 301 in view of what has been stated in Calcutta Country Spirit, Opium and Drug Association Ltd. v. State of West Bengal [1974] 34 STC 161 (Cal). In that case, a learned....