V.M SYED MOHAMMAD AND COMPANY versus THE STTE OF ANDHRA.

V.M SYED MOHAMMAD AND COMPANY versus THE STTE OF ANDHRA.

The Madras General Sales Tax Act (IX of 1939) is not ultra vires the Government of India Act, 1935, as entry 48 in List II of the Seventh Schedule was wide enough to cover a law imposing a tax on purchasers as well as sellers; the Act does not violate Article 14 of the Constitution as there is no material suggesting arbitrary discrimination; Rule 16(5) is ultra vires section 5(vi) but severable, and does not affect the validity of the Act or other rules.

Parties
Appellant: V. M. Syed Mohammad and Company; Respondent: State of Andhra; Intervener: State of Madras; Intervener: State of Travancore-Cochin; Intervener: State of Mysore; Intervener: State of Bihar
Jurisdiction
India
Judgment Date
11 March 1954
Procedural Posture
Civil Appeal / Appeal From Judgment of High Court of Madras in Writ Petitions Nos. 21 and 41 of 1952
Outcome
Appeals dismissed with costs.
Legal Topics
Legislative Competency, Equality Before Law, Ultra Vires, Sales Tax, Rule Making Power
Constitutional Law Tax Law Legislative Competency Equality Before Law Ultra Vires Sales Tax Rule Making Power

Case Brief

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Parties

V. M. Syed Mohammad and Company

Appellant

State of Andhra

Respondent

State of Madras

Intervener

State of Travancore-Cochin

Intervener

State of Mysore

Intervener

State of Bihar

Intervener

Procedural Posture

Civil Appeal / Appeal From Judgment of High Court of Madras in Writ Petitions Nos. 21 and 41 of 1952

Legal Issues

  1. 1 Whether the Madras General Sales Tax Act (IX of 1939) is ultra vires the Government of India Act, 1935 or the Constitution of India
  2. 2 Whether Rule 16(5) framed under the Act is ultra vires section 5(vi) of the Act
  3. 3 Whether the Act violates Article 14 of the Constitution by discriminating between purchasers of different commodities

Ratio Decidendi

The Madras General Sales Tax Act (IX of 1939) is not ultra vires the Government of India Act, 1935, as entry 48 in List II of the Seventh Schedule was wide enough to cover a law imposing a tax on purchasers as well as sellers; the Act does not violate Article 14 of the Constitution as there is no material suggesting arbitrary discrimination; Rule 16(5) is ultra vires section 5(vi) but severable, and does not affect the validity of the Act or other rules.

Court Disposition

Appeals dismissed with costs.

Orders

  • Rule 16(5) is ultra vires section 5(vi) but is severable and does not affect the validity of other rules.
  • Agent for the respondent and for the interveners: States of Madras, Mysore and Bihar: R. H. Dhebar.