Can tax be levied on a particular goods in a particular part of the state, when the same goods is exempted from tax on the other parts of the state...??

Yeah it can be, if legislation provides so!

 

 

Regards

Rita Paryani

Dear Rita

But isnt that arbitrary levy and violative of Article 14 of the constitution. Whereby a person in a particular district does not pay VAT for the same product and another person in the neigbouring district pays.

no, tax cannot levied if that good is in a same form and that particular good is exempt

Dear anuj,

yes the same goods are exempt from tax in the other part of the states

Government in its wisdom can extend certain exemptions to an industrially or economically backward area to promote growth. The same can be area specific, commodity specific or industry specific.

I am agree with Mr.Vineet. The State legislature can provide tax exemption to a group of persons or institutions or products. It should be for the purpose of PUBLIC INTEREST or otherwise it will be termed as discrimination. Thanks.

my district being the only district in the whole state being taxed for the particular product. it sounds discriminatary on the face of it. can anyone help me with citations and case laws on this aspect.

Dear Mr. Lawyer. In my last post it was specifically stated that state legislature has power to fix the rate of tax. Even without searching, simply asking questions. Very good idea? However the issue relating to you/client has been already decided by the Hon'ble S.C. please refer, verify and find out the dictum from 13 STC 529, AIR (1970) SC 1133, 48 ITR 21, 45 STC 36 and 4 SCC 428.

Thanks. 

I do agree but, everything has to undergo the Test of article 14 and there are judgments on the other side as well. And i do know the legislature is competent, but wanted some case laws out of it. where the courts have struck down for e.g. 1989 AIR 621,1968 AIR 658. I being a lawyer, i am supposed to give my client a remedy and cannot have a dogmatic view on things.

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