ASSOCIATED TANNERS VIZIANAGRAM, A.P. versus COMMERCIAL TAX OFFICER, VIZIANAGRAM, ANDHRA PRADESH & ORS.

Citation: [1986] 1 S.C.R. 969 · Decided: 18-03-1986 · Supreme Court of India · Bench: R.S. PATHAK · Disposal: Dismissed
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Judgment (excerpt)

ASSOCIATED TANNERS VIZIANAGRAM, A.P. 
v. 
COl!MEJ!CIAL TAX OFFICER, 
VIZIANAGRAM, ANDHRA l'RADESH & ORS. 
MARC!! 18, 1986 
[R.S. PATHAK AND SABYASACHI MUKllARJI, JJ,] 
969 
Andhra Pradesh General Sales Tax Act, 1957 Item 9(b) of 
Third Schedule whether unconstitutional and void and offends 
Articles 14 and 304(a) of the Constitution of India - Whether 
A 
B 
Central Sales Tax Act could be levied or leviable under the 
c 
Central Sales Tax Act on the inter-State Sales of tanned hides 
which have already suffered tax at the untanned stage. 
Under item 9(b) of the Third Schedule to the Andhra 
Pradeah General Salea Tax Act, 1957 tanned hides and skins, 
(which were not subjected to tax as untanned hides and skins), 
when purchased by a manufacturer in the State at the point of 
purchase by the manufacturer and in all other cases at the 
point of purchase by the last dealer who buys them in the 
State, salea tax on the turnover calculated at the rate of 2 
paise in the rupee was payable. In reapect of the interstate 
salea Salea Tax under the Central Salea Tax was also leviable 
under the Central Sales Tax Act. 
The appellant purchasea raw hidea and skins in the State. 
of A. P. , tan the same and mostly used to sell such tanned 
hidea in the course of inter-State trade. The first Reapondent 
by his order dated 30th January, 1969 had assessed the 
appellants' inter-State sales turnover at Rs. 16,23,194.29 and 
levied a tax of Rs. 48,695,82 under the Central Act. The local 
purchase turnover of raw hidea was assessed at Rs. 7 ,92,585 
and a tax of Rs. 23,777.66 was also levied. The appellant, 
therefore, filed a Writ Petition No. 3464/71 in the A.P. High 
Court for declaring (i) that no tax could be levied or was 
leviable under the Central Sales Tax Act on the inter-State 
sales of tanned hides which have already suffered tax at the 
untanned stage. The High Court having dismissed the Writ 
Petition, the appellant has come in appeal by Special Leave. 
Dismissing the appeal, the Court, 
D 
E 
F 
G 
H 
A 
B 
c 
D 
E 
F 
G 
H 
970 
SUPREME COURT REPORTS 
[1986] 1 S.C.R. 
lllUI : 1.1 When a taxing statute was not imposing rates 
of tax on i11POrted goods different from rates of tax on goods 
Ullllfactured or produced, article 304 bad no application. So 
long u the rate was the same, article 304 was satisfied. When 
the rate la applied the resulting tax might be somewhat higher 
but that ilid not contravene the equality clause contemplated 
by Article 304 of the Constitution. In the instant case, the 
tax being at the same .rate, article 304(a) is not offended. 
[975 G-fl) 
latta t.i ' Co. and Anr. •· ?be Aaening AatboritJ ' 
.&ar •• [1969) 2 s.c.R. 544 discuased and applied. 
1.2 The le.y by the State Act is in consonsnce with the 
acheme of Central Act. By sub-section (2) of section 8 of the 
Central Act, the tax payable by any dealer on his turnover in 
ao far u the turnover of any part thereof relates to the sale 
of good• in the course of inter-State trade or counerce not 
falling under sub-section (1), shall be at the rate specified 
in sub-section (2) of section 8. these goods do not fall in 
aub-9ection (1) of section 8. [976 C-D) 
The 
effect 
of 
an 
imposition of 
tax might 
worlt 
ilifferently upon different dealers namely, those who use 
imported tanned goods and those who purchase these locally and 
tan these locally and then sell in the course of inter-State 
sales. But that effect cannot be said to be arising directly, 
or u 
an i-.liate effect of the imposition of the tax. 
Therefore there cannot be any question of violation of article 
304(a) of the Constitution. [977 C-E) 
1.3 The i11P09ition, in this case, was in implementation 
of the Central Act. 'lbere is no prohibition under Article 304 
of tha Constitution on the Parliaent for imposition of any 
tax. The abargo that was placed by Article · 304 of the 
Constitution was on the Legislature of a State. [977 E-F) 
CIVIL APPEil.ATE JURISDICTION : Civil Appeal No. 
1345 
(NT) of 1974. 
From the Judgment and Order dated 14th December, 1972 of 
,--"-
the Andhra Pradesh High Court in Writ Petition No. 3464 of 
1971. 
' 
ASSOCIATED TANNERS v. C.T.O, [SABYASACHl MUKHARJI, J.] 
971 
D.P. Mukharjee and G.S. Chatterjee for the Appellant. 
K, Ram Kumar for Respondent Nos. I and 2. 
Anil Dev Singh, Ms Halida Khatun and C. V. Subba Rao for 
Respondent No. 3. 
The Judgment of the Court was delivered by 
A 
B 
SABYASAQII MllKllAl!JI, J. This appeal by special leave 
aris
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