Supreme Court of India · 1977-08-31
R. S. JOSHI, S.T.O. GUJARAT ETC. ETC. vs AJIT MILLS LTD., AHMEDABAD & ANR. ETC. ETC.
- Citation / case number
- SC 1975/60460
- Court
- Supreme Court of India
- Petitioner
- R. S. JOSHI, S.T.O. GUJARAT ETC. ETC.
- Respondent
- AJIT MILLS LTD., AHMEDABAD & ANR. ETC. ETC.
- Bench
- BEG, M. HAMEEDULLAH (CJ),CHANDRACHUD, Y.V.,BHAGWATI, P.N.,KRISHNAIYER, V.R. & FAZALALI, S.M.,UNTWALIA, N.L. & KAILASAM, P.S.
Judgment text excerpt
The Supreme Court upheld the constitutional validity of Section 37(1)(a) of the Bombay Sales Tax Act, 1959, which allows for the forfeiture of sums collected by dealers in contravention of Section 46. The Court ruled that the punitive nature of the forfeiture is legitimate and within the legislative competence of the State Legislature under Entries 54 and 64 of List II of the Constitution. The High Court's decision to strike down this provision was reversed, affirming that the imposition of penalties for unauthorized tax collection is valid.