Friday, November 4, 2011
SC rejected Tax Appeals against textile Units of Gujarat
While setting aside the impugned common Judgment and Order dated 25.07.2005 passed by the High Court of Gujarat at Ahmedabad in the Special Civil Application No.735 of 1999 and connected eight applications filed under Article 226 of the Constitution of India, against certain textile units of Gujarat, the Hon. Supreme Court of India, recently emphasizes upon the principle of equality under the provisions of the Constitution of India. In a recent judgment SC declared that " Nevertheless, in our opinion, two different interpretations of a particular entry by the same authority on same set of facts, cannot be immunised from the equality clause under Article 14 of the Constitution. It would be a case of operating law unequally, attracting Article 14 of the Constitution.To sum up, Article 14 does not prohibit reasonable classification of persons, objects and transactions by the Legislature for the purpose of attaining specific ends. To satisfy the test of permissible classification, it must not be "arbitrary, artificial or evasive" but must be based on some real and substantial distinction bearing a just and reasonable relation to the object sought to be achieved by the Legislature"
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