TRIPURA GOODS TRANSPORT ASSOCIATION AND ANR. versus COMMISSIONER OF TAXES AND ORS.

Citation: [1998] SUPP. 3 S.C.R. 622 · Decided: 18-12-1998 · Supreme Court of India · Bench: K. VENKATASWAMI · Disposal: Dismissed

Judgment (excerpt)

A 
TRIPURA GOODS TRANSPORT ASSOCIATION AND ANR. 
v. 
COMMISSIONER OF TAXES AND ORS. 
DECEMBER 18, 1998 
B 
[K. VENKATASWAMI AND A.P. MISRA, JJ.] 
Sales Tax-Tripura Sales Tai Act, 1976/Tripura Sales Tax Rules, 1976 
as amended by Tripura Sales Tax [J J'h .Amendment] Rules, 1994-Sections 
29,30,32,36A,38B/Rules 46A(3);63A; 64A; FormXXIV-Constitutionally of-
C Held, they are within ihe legislative competence of the State and would fall 
under List II of Entry 54 of the Seventh Schedule to the Constitution-The 
obligation cast on the transporter regarding maintenance of accounts and 
disclosure of the quantity value, weight of the goods is only to help the 
authorities to check the evasion of tax--.:Such obligation has no co-relation 
D with the sale and purchase of the goods or to treat transporter as dealers-
Impugned provisions not being charging Sections, no tax liability placed on 
the transporters-Constitution of India, 1950-Seventh Schedule, list JI, Entry 
54. 
E 
Constitution of India 1950: 
Article 246-Seventh Schedule List II, Entry 54-State Legislation-
Legislative Competence ofHeld, if any legislature makes any ancillary or 
subsidiary provision which incidentally transgresses over its jurisdiction for 
achieving the object of such legislation, then it would be a valid piece of 
legislation-Entries to be giw.,i their fullest meaning and widest amplitude 
F and be held to extend to all ancillary or subsidiary matters which can fairly 
and reasonably be comprehended within it. 
Art. 301,304(b)-Tripura Sales Tax Act, 1976-Sections 38;388-
Constitutionality of Requirement of Section 388 for a transporter operating 
its transport business relating to taxable goods in Tripura to obtain certificate 
G of Registration from the Commissioner of Taxes-Held, not violative of Art, 301 
of the Constitution-Transporters required to obtain certificate of Registration 
to check evasion of tax. 
H 
The appellant-association was doing the business of transporting goods 
within and outside the State ofTripura. The Tripura Sale Tax [11,. Amendment) 
622 
TRIPURA GOODS TRPT. ASSN. v. COMMR. OF TAXES 
623 
Rules, 1994, Sections 29, 32 and 36A of the Tripura Sales Tax Act, 1976 A 
and the notification dated 23•• September, 1994 and 15'" October, 1994 
introduced certain provisions as a result of which the appellants who were 
the transporters in Tripura were required to comply with various formalities 
as prescribed under the Act and the Rules. The appellants were required to 
obtain a "Certificate of Registration", to maintain accounts according to the B 
prescription made under Section 36A of the Act for carrying on transport 
business while entering into or going outside the State of Tripura and 
making the declaration in Form XXIV. The appellants challenged the 
amendments by way of a writ petition as being beyond the legislative 
competence of the State Legislature and ultra-vires the Constitution offending 
Articles 14,19(1 )(g), 246, 265, 286,300A and 30 l of the Constitution. Single C 
Judge of the High Court dismissed the writ petition of the appellants except 
the challenge regarding constitutional validity of Rule 63A(2). The decision 
of the Single Judge was upheld by the Division Bench in appeal. Hence the 
present appeal. 
On behalf of the appellants, it was contended that the impugned D 
provisions lacked legislative competence as the obligation cast under it on 
the transporters could only be on a dealer. It was submitted that the appellants 
were mainly the transporters carrying goods of the consignor to the consignee 
and were neither a dealer nor doing any business of sale or purchase of any 
goods. Hence the obligations cast on the transporters including punishment E 
for the offences relating to contravening of any the provisions of the Act 
were beyond the legislative competence of the State legislature under List 
II of Entry 54 of the Seventh Schedule of the Constitution of India. It was 
further contended that the impugned provisions impeded free flow of trade 
and business of the appellants and hence violative of Article 301 of the 
Constitution of India as it cast an obligation on the transporters to obtain F 
Certificate of Registration under the Act when any goods were brought 
within or sent outside the State of Tripura and further to fill Form XXIV. 
On behalf of the respondents, it was contended that none of the 
impugned provisions required the appellant-transporter to perform any of 
such obligatio

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