MITHAN LAL versus THE STATE OF DELHI & ANOTHER

MITHAN LAL versus THE STATE OF DELHI & ANOTHER

It is within the competence of Parliament to impose sales tax on the supply of materials in building contracts for Part C States, and to extend taxation laws by notification; section 2 of Part C States (Laws) Act is not repugnant to Article 248(2) nor is it an unconstitutional delegation of legislative power.

Parties
Petitioner: Mithan Lal; Respondent: State of Delhi; Respondent: R. H. Dhebar; Intervener: States of Madras and Mysore; Intervener: State of U. P.; Intervener: State of Kerala; Intervener: M/s. Raipur Provincial Engineering Co.
Jurisdiction
India
Judgment Date
07 April 1958
Procedural Posture
Petition Under Article 32 of Constitution of India / Original Jurisdiction; Supreme Court Final Determination
Outcome
Petitions dismissed with costs
Legal Topics
Sales Tax, Competence of Parliament, Delegation of Legislative Authority, Validity of Notification, Enforcement of Fundamental Rights
Taxation Law Constitutional Law Sales Tax Competence of Parliament Delegation of Legislative Authority Validity of Notification Enforcement of Fundamental Rights

Case Brief

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Parties

Mithan Lal

Petitioner

State of Delhi

Respondent

R. H. Dhebar

Respondent

States of Madras and Mysore

Intervener

State of U. P.

Intervener

State of Kerala

Intervener

M/s. Raipur Provincial Engineering Co.

Intervener

Procedural Posture

Petition Under Article 32 of Constitution of India / Original Jurisdiction; Supreme Court Final Determination

Legal Issues

  1. 1 Whether Parliament was competent to impose tax on the supply of materials in building contracts under Sales Tax
  2. 2 Whether extension of Bengal Finance (Sales Tax) Act, 1941 to Delhi through notification was valid
  3. 3 Whether section 2 of Part C States (Laws) Act is repugnant to Article 248(2)

Ratio Decidendi

It is within the competence of Parliament to impose sales tax on the supply of materials in building contracts for Part C States, and to extend taxation laws by notification; section 2 of Part C States (Laws) Act is not repugnant to Article 248(2) nor is it an unconstitutional delegation of legislative power.

Court Disposition

Petitions dismissed with costs

Orders

  • Petitions under Article 32 challenging validity of assessments and imposition of sales tax dismissed with costs