Supreme Court of India · 1963-05-10
IN RE. THE BILL TO AMEND S. 20 OF THE SEA CUSTOMS ACT vs
- Citation / case number
- SC 1962/159
- Court
- Supreme Court of India
- Petitioner
- IN RE. THE BILL TO AMEND S. 20 OF THE SEA CUSTOMS ACT
- Bench
- SINHA, B.P.(CJ),DAS, S.K. & GAJENDRAGADKAR, P.B.,SARKAR, A.K. & WANCHOO, K.N.,HIDAYATULLAH, M. & GUPTA, K.C. DAS,SHAH, J.C. & AYYANGAR, N.R.
Judgment text excerpt
The Supreme Court, in a reference under Article 143 of the Constitution, held that Article 289(1) provides immunity to State Governments only from taxes directly levied on property and income. The Court clarified that customs duties and excise duties, while related to goods, do not constitute direct taxes on property and thus are not exempt under Article 289(1). The majority opinion concluded that the proposed amendments to the Sea Customs Act, 1878, and the Central Excises and Salt Act, 1944, were constitutional, allowing the Union to impose such duties on State property used for non-specified purposes.