TaxTMI 
TaxTMI 
2002 (10) TMI 753
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....as from the tea gardens and they are aggrieved by the impugned notification dated December 13, 1993, whereby a tax was made payable by the brokers at the rate of two paise in the rupee. The impugned notification reads as follows: "Notification dated Dispur, the 13th December, 1993. No. FTX.60/93/Pt/44: In exercise of powers conferred by subsection (3) of section 9 of the Assam General Sales Tax Act, 1993 (Assam Act XII of 1993) the Governor of Assam, is hereby pleased to direct that: (a) Notwithstanding anything contained in the Assam General Sales Tax Act, 1993 and in addition to any tax leviable under any other provisions of this Act, a tax shall be payable by the broker, through whom, the tea is sold at the rate of two paise in ....
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....Act, for short, "the Act", does not provide for levying of tax. It is for providing exemption only. (2) The impugned notification violates the provisions of article 14 of the Constitution. (3)It cannot be given retrospective effect. 3.. The sales tax on sale of tea is leviable under the Act at the point of last sale within the State and as per Schedule III to the Act, the tax is at the rate of 8 paise in the rupee. Vide impugned notification, the sales tax has been made payable by the brokers on the purchase of tea except the orthodox tea from the auction sale at Guwahati. The brokers on the other hand, have passed on this burden to the petitioners. The said brokers have been made parties in these writ petitions. But it may be mention....
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...., after the enactment of the Assam General Sales Tax Act, 1993, considering the operational difficulties and other considerations, the State decided not to allow the said exemption. In their affidavit-in-opposition, the respondent-State has given the reasons as to the policy decision for not allowing the exemption/set-off to the category of petitioners/ dealers. The reasons stated by the respondent-State are as follows: (1) The 2 per cent tax charged by brokers mingles with total selling price and as such the total selling price of brokers is the purchase price of buyers. (2) The price at which an ultimate consumer buys tea at market is several times higher than the auction selling price and actual consumer does not get any relief of ....
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....xemption or reduction may extend to the whole of the State or to any specified area or areas therein and be subject to such restrictions and conditions as may be specified in the notification: Provided further that validity of any notification issued under this sub-section shall not exceed a period of three years from the date of its issue." 8.. As regards the challenge, that section 9(3) does not empower the State Government to levy tax on the brokers, it is submitted that general rate of tax on sale of tea was 8 per cent under the Act of 1993. Vide the impugned notification the said rate was reduced to 2 per cent for sale of tea in particular stations, that is, auction market. It is, therefore, submitted that the impugned notificati....