1997 (2) TMI 516

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....nexures A, B and C) be declared ultra vires, unjust and unreasonable and mandamus may be issued against the respondents directing them to apply uniform rate of tax in respect of loose tea at 7 per cent. 4.. The petitioner is the wholesale dealer carrying on business of loose tea under the trade name "Khanna Stores" at Jabalpur. The petitioner is also a registered dealer under the provisions of the M.P. General Sales Tax Act, 1958 (for short "the Act "). The State Government issued a Notification (annexure A) in exercise of the power conferred by section 12 of the Act and exempted class of goods specified in column (3) from August 1, 1990 to March 1, 1991 from payment of tax as under: "Loose tea Partially so as to reduce the rate of ta....

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....hing 20 kg. or more, i.e., there should not be smaller packets. Learned counsel submitted that this classification has no nexus which is sought to be achieved and, therefore, it is arbitrary and violative of articles 14, 19(1)(g) and 301 of the Constitution. 6.. Return has been filed by the respondents. They have clarified that this was done with a view to benefit persons belonging to poor strata of society and that the incidence of tax is reduced for such kind of persons. In the return it is submitted as under: "It is submitted that loose tea available and sold in the market is to cater to the needs of poorer and lower section of the society which cannot afford to purchase the higher quality of tea sold under a brand name in an air-t....

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....ieved by prescribing lower rate of tax on the bulk sale of tea which is normally sold in bulk of more than 20 kg. packages and that 20 kg. of bulk packages are being sold by the retailers in open market loosely. Therefore, for such small quantity of tea which is being sold to the consumers, the incidence of taxation will be suffered less by them as against the air-tight packets of various quantities of tea weighing from 250 gms. and above. We are satisfied that this classification which has been made with a view to benefit the poor people cannot be termed as arbitrary or in violation of articles 14, 19(1)(g) and 301 of the Constitution. Rather the idea is sought to be achieved to the benefit of the poor and such classification cannot be ter....