TaxTMI 
TaxTMI 
2020 (5) TMI 520
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....plicable to the petitioner in view of the Agreement on Trade and Commerce between the Government of Kingdom of Bhutan and the 3rd respondent Union of India dated 28.02.1995. 2. At the out set, it may be noted that the prayer in this Writ Petition is not precise and does not clearly articulate the relief sought for by the petitioner. Though this Writ Petition is of the year 2004, none of the respondents have filed their counter. Since the issue is covered, I take up this case and dispose it. 3. The petitioner has challenged the levy of tax on imported goods at 20 % vide Tamil Nadu General Sales Tax (Fourth Amendment) Act, 1959 (Act 18 of 2002) dated 26.05.2002, w.e.f. 01.04.2002 as substituted by Tamil Nadu General Sales Tax (Seventh Amendment) Act, 1959 (Act 22 of 2002) inserting Section 3(2-C) and Eleventh Schedule (Item 9) to the Tamil Nadu General Sales Tax Act, 1959 dated 26.05.2002, w.e.f. 01.07.2002 as ultra vires the Constitution of India and in any event as not applicable to the petitioner in view of the Agreement dated 28.02.1995 on Trade and Commerce between the Government of Kindom of Bhutan and the 3rd respondent Union of India. 4. The Tamil Nadu General Sales ....
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....ner that two countries have entered into the aforesaid agreement dated 28.02.1995 with a desire to strengthen free Trade and Commerce between the two countries by way of Bilateral Trade and Collaboration in economic development of the two Sovereign States. According to the petitioner that the aforesaid agreement clearly stipulates that there shall free Trade and Commerce between the two countries. 10. According to the petitioner, the impugned amendments apart from being discriminating in nature is also contrary to Bilateral Trade and Commercial Agreement signed between the two countries. It is submitted that it is contrary to List I of Entry 10 and List I of 14 to the 7th Schedule of the Constitution of India. 11. In this connection, the learned counsel for the petitioner has placed reliance on the following decision:- i. Gramaphone Company of India Limited Vs. Birendra Bahadur Pondey and Others, AIR 1954 SC 667. ii. Sheela Barse Vs. Secy., Children's Aid Society, (1987) 3 SCC 50. iii. Apparel Export Promotion Council Vs. A.K. Chopra, AIR 1999 SC 625. iv. Indian Sugar and General Industry Export Import Corporation Ltd. Vs. Commercial Ta....
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....m of Bhutan had to held as not applicable to the petitioner. 15. In this connection, the learned counsel for the petitioner relied on the decision of the Hon'ble Supreme Court in CC Vs. G.M. Exports, 2015 (324) ELT 209. The Court held that the decision of the Division Bench of this Court in M/s. Sony India (cited supra) is not applicable and is not binding upon the State. 16. Finally, the learned counsel for the petitioner submits that the recent decision of the Constitutional Bench of Hon'ble Supreme Court in Jindal Steel (P) Ltd Vs. State of Haryana and Others, (2017) 12 SCC 1 relating to the challenge to vires of Entry tax legislation by the States, it was categorically held that there should not be a discriminatory tax imposed by the States in their legislative power which was held to be ultravires of Article 304(a) of the Constitution of India. 17. The learned counsel for the State Revenue relied on decision of the Division Bench of this Court in M/s.Sony India Limited Vs. The Commercial Tax Officer, Egmore -II Assessment Circle, passed in W.P.No.17424 of 2003 and batch of cases, on 07.09.2007, wherein, vires of challenged the Entry 14(vi) of Part D of the Fir....
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.... are not contrary to domestic law are followed by the courts in this country. This is a situation in which there is an international treaty to which India is not a signatory or general rules of international law are made applicable. It is in this situation that if there happens to be a conflict between domestic law and international law, domestic law will prevail. (2) In a situation where India is a signatory nation to an international treaty, and a statute is passed pursuant to the said treaty, it is a legitimate aid to the construction of the provisions of such statute that are vague or ambiguous to have recourse to the terms of the treaty to resolve such ambiguity in favour of a meaning that is consistent with the provisions of the treaty. (3) In a situation where India is a signatory nation to an international treaty, and a statute is made in furtherance of such treaty, a purposive rather than a narrow literal construction of such statute is preferred. The interpretation of such a statute should be construed on broad principles of general acceptance rather than earlier domestic precedents, being intended to carry out treaty obligations, and not to be inconsist....
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....30. Whether Part XIII could be made applicable to imported goods is a further question for consideration in this case. Part XIII of the Constitution relates to the restriction on inter-State and intra-State trade on goods. Inter-State trade would mean where the goods manufactured in a State are sold in the same State. Equally, an intra-State trade would mean only such of those goods manufactured in one State and sold in other State/States. So long as the movement of goods within the State or from one State to another is not restricted, Part XIII of the Constitution cannot be pressed into service. In the given case, there is no restriction on goods from one State to another. By virtue of the power the State had classified the goods for the purpose of levy of sales tax. Heavy reliance was also placed on a Division Bench judgment of this Court in Indian Sugar & General Industry Export Import Corporation Ltd., v. Commercial Tax Officer and others (2002) Vol.127 STC 339) to contend that there cannot be any distinction between imported and indigenous goods. That was a case where this Court had dealt with the imported sugar. The Division Bench considered the word "imported" found in item ....