Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Tax Rebate Inter-State Trade and Commerce |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Constitution of India, 1950:Articles 301 and 304(a) - Inter-State Trade and Commerce - Tax rebate - Granted by State Government (State.of U.P.) by Notification-, To cement manufacturing units - The first condition for getting benefit of the rebate was that the units were established in the districts of that State and the second condition was that the units were manufacturing cement by using fly-ash purchased from that State - The Notification whether in violation of Arts. 301 and 304(a) - Held: The Notification is violative of Arts. 301 and 304(a) - It discriminated between imported goods and similar locally manufactured goods (i.e. cement manufactured by using flyash procured from the State of U. P.) - Object of the Government was to grant rebate to provide incentive to the manufacturing units using fly-ash - Thus the first condition was discriminatory - If the first condition is severed from the Notification, it would not frustrate the object of the notification - Therefore, using doctrine of severabiliity, condition No. 1 is severed from the Notification - Uttar Pradesh Trade Tax Act, 1948- s. 5. Art. 304(a) - Nature and scope of- Held: Article 304(a) is an exemption to Art .. 301 - It does not prevent levy of tax on goods - But such levy of tax is prohibited, which would result in goods imported from other Sta,tes and similar goods produced or manufactured within the State. Art. 304 :- Powers under - Extent and Scope of - Held: The powers given to State Legislatures are not unrestricted, and are bound to function within limitations stipulated under Art. 304(a) - The power u!Art. 304(a), though an exception to Art. 301, but is not a blanket power intended to be conferred to the State Legislature - Powers u/Art. 304(b) also are to be exercised sparingly. Arts. 302 and 304(a) - Powers under - Distinction between.Taxation - 'Rebate of tax' - Held: It is such a device or D weapon of taxation used by the Government, validity where of is tested on the touchstone of Article 304(a), in the circumstances under which they are used - Exemption or rebate of tax is within the purview of taxation Constitutionalism - Test of constitutional validity of a statute - Held: Machinery provisions cannot be used. to test the constitutional validity of a statute - Issue of territoriality should a/so not be a factor to determine the constitutional validity of a notification.Doctrine - Doctrine of severability - Applicability of - Discussed. Words and Phrases: Discrimination' - Meaning of, in the context of taxation and in the context of Art. 304(a) of the Constitution of India, 1950. 'Rebate' - Meaning of - Explained in the context of Taxation. 'Rebate of tax' and 'incentive' - Distinction between: ยท'Tax' and 'Taxation''- Meaning of, in the context of Article 304(a) of the Constitution of India, 1950. |
Judge | Honble Mr. Justice H.L. Dattu |
Neutral Citation | 2013 INSC 707 |
Petitioner | State Of U.p. And Ors. |
Respondent | Jaiprakash Associates Ltd. |
SCR | [2013] 11 S.C.R. 943 |
Judgement Date | 2013-10-18 |
Case Number | 3026 |
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