Case Note & Summary
The case involved a series of writ petitions filed by various bakeries challenging the imposition of sales tax and surcharge on bread, rusk, and bun under the Andhra Pradesh Sales Tax Act, 1957. The petitioners contended that bread and biscuits constituted a homogeneous class and should not be subjected to different tax rates as per Schedule I, Item Nos. 117 and 129 of the Act. They argued that the differential treatment violated Article 19(1)(g) of the Constitution, which guarantees the right to practice any profession or carry on any occupation, trade, or business. The court analyzed the arguments presented, including references to previous judgments, and concluded that the economic wisdom of tax is a matter for the legislature, not the judiciary. The court found rationality in the legislature's decision regarding tax imposition, stating that the capacity to pay tax generally increases with receipts. Consequently, the court dismissed the writ petitions, affirming that the challenge under Articles 14 and 19(1)(g) was not sustainable and that the imposition of sales tax was valid. The court ordered that there would be no costs and vacated any interim orders previously in place.
Headnote
A) Constitutional Law - Sales Tax Imposition - Different rates for bread and biscuits - Constitution of India, 1950, Articles 14 and 19(1)(g) - Petitioners challenged the imposition of sales tax on bread and biscuits, claiming they belong to a homogeneous class and should not be taxed differently. The court held that the economic wisdom of tax is within the legislature's domain and found no violation of Articles 14 and 19(1)(g) (Paras 9D-F).
Issue of Consideration
Whether the imposition of different sales tax rates on bread and biscuits is constitutionally valid.
Final Decision
The Supreme Court dismissed the writ petitions, affirming the validity of the sales tax imposition on bread and biscuits under the Andhra Pradesh Sales Tax Act, 1957, and held that the challenge under Articles 14 and 19(1)(g) was not sustainable.
Law Points
- Constitutional validity
- Sales tax
- Homogeneous class
- Article 14
- Article 19(1)(g)
- Legislative domain
- Economic wisdom of tax
