- (1.) This is a petition under Art. 32 of the Constitution challenging the legality of the amendment introduced in s. 15 of the Assam Sales Tax Act, 1947 (Act XVII of 1947), by s. 2 of the Assam Sales Tax (Amendment) Act, 1960 (Act XIII of 1960), by which sub-s. (b) of item (i) of sub-clause (b) of clause (1) was deleted and hereby sales of goods to a registered dealer intended for use in production of goods for sale became liable to sales tax.
(2.) The appellant Company is a limited company carrying on in the State of Assam its business of manufacturing, selling and supplying iron and steel materials. It held a Registration Certificate under the Assam Sales Tax Act, as it was before the amendment of 1960. Under that Act all its purchases for use in manufacture or production of goods taxable under the Act were exempt from sales tax but after the amendment of the Act there was a deletion in the Registration Certificate of certain goods, e.g., cast iron, iron plates, steel bars and galvanised wire which were used by the petitioner in the manufacture of its finished products which were also taxable in the State. Consequently it has become liable to pay tax on those goods purchased for use in the manufacture of the goods and the cost of production has thereby gone up.
(3.) Three points were raised by the petitioner :- (1) that the amendment introduced by Act XIII of 1960 is violative of Art. 14 because it discriminates between manufacturers who supply goods according to orders received and others who manufacture goods on their own account and sell them; (2) that the restriction imposed by the Amending Act is excessive and violative of Art. 19(1)(f); and (3) that the refusal to amend the Registration Certificate by not reinstating the articles mentioned above affects the rights of the petitioner Company under Art. 19(1)(f).;