JAIN, J. - (1.) THIS writ petition has been filed by Paras Mal, Principal Secretary M/s. Barmer Marudhar Vikas Samiti, Barmer under Article 226 of the constitution of India to declare the words "in, the State" in clause 5 of Notification Ex. 3 dated 16. 8. 83 as unconstitutional. The petitioners also seeks to quash the respective assessment orders (Ex. l3 to 15) and demand notices (Ex. 16 to 18) dated 7. 3. 88.
(2.) THE Barmer Marudhar Vikas Samiti is a registered Society and it is also registered as a dealer under the Rajasthan Sales Tax Act (hereinafter referred to as the 'act') importing match boxes manufactured by the cottage match industries outside the State of Rajasthan. THE sale or purchase of such match boxes alongwith other products of the village industries were exempted by the State Government Vide Notification dated 6. 3. 78 (Ex. l ). THE petitioners Society was also exempted from payment of tax. This Notification was superseded by another Notification Ex. 3 dated 16. 8. 83 wherein exemption was granted to the products processed and manufactured by the village industries in the State of Rajasthan. THE petitioner has challenged the validity of the Notification Ex. 3 so also the assessment orders and demand notices issued in pursuance thereof. Mr. Purohit, learned counsel for the petitioner has contended -that the impugned notification Ex. 3 dated 16. 8. 83 is unconstitutional since it levies sales tax on the products of the village industries situated outside Rajasthan and imported to Rajasthan,which can only be levied if a similar tax is imposed on the products of the similar industries in Rajasthan. According to him the imposition of the tax in this manner offends Article 304 (a) and also hit by Article 14 of the Constitution of India being discriminatory. He has relied on State of Madhya Pradesh Vs. Bhailal Bhai (1), West Bengal Hoisery Association Vs. State of Bihar (2), Weston Electronics Vs. State of Gujarat (3) and the Indian Cement Vs. State of Andhra Pradesh Mr. Rajvanshy has opposed the submissions of Mr. Purohit stating that the State of Rajasthan for upliftment of its people working in village cottage industry can levy sales tax on the products of village industries situated outside Rajasthan as grant of exemption from payment of sales tax is prerogative of State Government and no one has a right to claim exemption from payment of tax. He has contended that the words inserted vide Ex. 3 are not void and discriminatory. He has placed reliance on State of Madhya Pradesh Vs. Abdeali We have heard learned counsel for the parties and perused the case law as well as the relevant provisions of law. For just decision of the controversy raised in this petition, it would be proper to read Articles 301 and 304 of the Constitution of India. They run as under: - "301. subject to the other provisions of this part, trade, commerce and intercourse throughot the territory of India shall be free. " "304. Notwithstanding anything in article 301 or article 303, the Legislature of a State may by law- (a) impose on goods imported from other States or the Union territories any tax to which similar goods manufactured or produced in that State are subject, so, however, as- not to discriminate between goods so imported and goods so manufactured or produced; and (b) impose such reasonable restrictions on the freedom of trade, commerce or intercourse with or within that State as may be required in the public interest; Provided that no Bill or amendment for the purpose of clause (b) shall be introduced or moved in the Legislature of a State without the previous sanction of the President.
(3.) A careful reading of these Articles shows that it is not open to any State to levy any tax on goods imported from other States or Union territories so as to discriminate between goods so imported and goods manufactured and produced in that State subject to the limitations contained in clause (b) of Article 304. Relevant part of the notification Ex. 1 dated 6. 3. 1978 reads as under: - " (v) No. F. 5 (37) FDCT/66-2, dated 31. 12. 1966 (S. No. 115) and hereby exempts from tax the sale or purchase of the under mentioned goods on the condition that the said goods are recorded in the registration certificate of the dealer claiming exemption as being so exempted on the recommendation of the Khadi and Village Industries Commission constituted under the Khadi and Village Industries Commission Act of 1956 (Central Act 61 of 1956) or the Rajasthan Khadi and Village Industries Board constituted under the Rajasthan Khadi and Village Industries Act,1955 (Rajasthan Act 5 of 1955):- (1 ). Cotton Punies, Silver, raw and processed wool, knitting wool and lefa (2) All carding, spinning,weaving, warping, silver making and hoisery making apparatus and applicances relating to the production of Khadi or hoisery goods and spare parts of such apparatus and applicances, including saranjam, amber charkha and spare parts thereof; (3) Hand-spun and hand-woven Khadi and yarns rade of cotton, wool, silk or any other natural fibres of animal hair or of mixture of any two or all of them; (4) Ready-made garments and other articles made of Khadi including razia, gaddas, pillows and handbags and jerseys, sweaters, socks and hand-gloves made of handspun and hand-woven yarn; (5) The products of the village industries as defined in the Khadi and Village Industries Commission Act,1956 (Central Act 61 of 1956) listed in the Schedule appended thereto: - Schedule l. Beekeeping; 2. Cottage Match Industry; Relevant part of the notification Ex-3 dated 16. 8. 83 reads as under: - "s. O. 74 - In exercise of the powers conferred by sub-section (2) of Section 4 of the Rajasthan Sales Tax Act, 1954 (Rajasthan Act 29 of 1954) and in supersession of this Department Notification No. F. 4 (21) FD. Gr. IV/78-2 dated 6. 3. 1978 (S. No. 380)the State Government being of the opinion that it is expedient in the public interest to do so, it hereby exempts with immediate effect from tax the sale or purchase of the goods as mentioned in the Schedule below on the following conditions: - 1. That the said goods are recorded in the registration certificate or the dealer claiming exemption. 2. That the recommendations of the Khadi and Village Industries Commission constituted under the Khadi and Village Industries Commission Act of 1956 (Central Act 61 of 1956) or Rajasthan Khadi and Village Industries Board constituted under the Rajasthan Khadi and Village Industries Board Act, 1955 (Rajasthan Act 5 of 1955) and produced before the concerning assessing authority. SCHEDULE 2. . . . . . . . . . . 3 . . . . . . . . . . 4. . . . . . . . . . 5.The products processed or manufactured in the State of the following Village Industries Commission Act, 1956 (Central Act 61 of 1956): - 1. . . . . . . . . . . 2. Cottage Match Industry. " ;