DURGA RICE AND BABA OIL MILLS CO NIDUBROLE Vs. STATE OF ANDHRA PRADESH
HIGH COURT OF ANDHRA PRADESH
DURGA RICE AND BABA OIL MILLS CO.NIDUBROLE REPRESENTED
STATE OF ANDHRA PRADESH
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Chandra Reddy, J. -
(1.) The constitutionality of the Andhra Pradesh General Sales Tax (Second Amendment) Act, (II of 1959) is put in issue in these writ petitions.
(2.) The impugned Act amended items 5 and 6 of Schedule III (Paddy rice) to the Andhra Pradesh General Sales Tax Act, 1957, which enumerates the goods in respect of which a single point purchase tax only is leviable under Section 5(3)(b) of that Act, by enhancing the sales tax payable thereon from 3 naya paise to four naya paise in the rupee. The notices on the petitioners demanding the tax as permitted by the amending Act have occasioned the resort to Article 226 of the Constitution by them for the issue of directions to the respondents to forbear from giving effect to the notices.
(3.) The validity of the Act is questioned on three grounds, namely (i) that it operates as a restriction on the freedom of trade contemplated by part XIII of the Constitution, especially. Article 304 (b) and, consequently, it falls within the protection of the proviso and that since the requirement as to the assent of the President was not satisfied, the legislation is void; (ii) that the present Act having been assented to by the President, the amending Act could not become law unless and until the President had accorded his assent to it; and (in) that the impugned Act was a colourable piece of legislation as in pith and substance this enactment has modified the Central Sales Tax Act, 1956.;
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