INTERNAL ASSIGNMENT – II
Case Analysis: R.S. Joshi, STO, Gujarat & Ors. Vs. Ajit Mills Ltd & Anr.
Prof-in-charge: Prof Ashutosh Naik
III BBA LLB ‘A’
Roll No. 23
Symbiosis Law School
Name of the case:
R.S. Joshi, STO, Gujarat & Ors. Vs. Ajit Mills Ltd & Anr.
AIR 1977 SC 2279: (1977) 4 SCC 98: 1977 SCC (Tax) 536
7 Judge Bench consisting of the following Justices of the Supreme Court of India:
Chief Justice M. Hameedullah Beg., Justice N. L. Untwalia, Justice P. N. Bhagwati, Justice P. S. Kailasam, Justice S. Murtaza Fazal Ali, Justice V. R. Krishna Iyer and Justice Y. V. Chandrachud.
Brief facts of the case:
The case dealt with the constitutionality of a certain pattern of sales tax legislation, calculated to counter consumer victimization by dealers. The provisions Sections 37(1) (a) and 46(2) of the Bombay Sales Tax Act, 1959 was the impugned section which were challenged in the Hon’ble High Court of Gujarat. The main question that was raised before the High Court was whether Sections 37(1) (a) and 46(2) of the Bombay Sales Tax Act, 1959 are beyond the legislative power conferred by Entry 54, List II in Schedule VII of the Constitution. The High Court held that the impugned sections are beyond the power of the State legislature and therefore ultra vires. Aggrieved by the decision, the State has preferred these appeals.
The trinity of points in controversy that were raised in this case were: a) Whether the Legislature has the required competence b) Whether or not the Legislature has the ancillary or incidental power to make provision for the levy and collection of such tax. c) Whether such provisions are in contravention to Articles 19 and d) Whether such provisions Breach equality as guaranteed under Article 14.
Rules and Judgment: