A sales tax law with respect to taxation cannot be said to infringe the Constitution merely because it operates unequally in the different States, not from anything done by the law-making authority, but on account of the inequality of conditions obtaining in the respective States.

GOPAL RAO EKBOTE, C. J.

( 1 ) THIS is an application filed under Article 226 of the Constitution for the issue of a writ declaring that item 9 (b) of the III Schedule to the andhra Pradesh General Sales Tax Act, 1967, is unconstitutional and void; further to declare that no tax can be levied under the Central Sales Tax Act, on the inter-State sales of tanned hides which have already suffered tax at the untanned stage. A further declaration is sought prohibiting the respondent from enforcing the assessment order of the 1st respondent dated 30th January, 1969 and to direct the respondents to refund the amount already collected.

( 2 ) THE facts relevant for our purposes are that the petitioner is a tanner who has his tannery at Vizianagaram and is a dealer. The petitioner purchases raw hides and skins in this State and tans the same. He mostly sells such tanned hides in the course of inter-State trade.

( 3 ) THE 1st respondent by his order, dated 30th January, 1969 assessed the petitioner s inter-State sales turnover at Rs. 16,23,194-29 p. and levied a tax of Rs. 48,695-82 P. under the Central Sales Tax Amendment act, 1969, hereinafter called "the Central act". The local purchase turnover of raw hides as assessed on a turnover of rs. 7,92,585 and a tax of Rs. 23,777-66p. was also levied.

( 4 ) THE petitioner filed W. P. No. 3236 of 1969, challenging the validity of the central Sales Tax Amendment Act of 1969. The petition, however, was withdrawn in view of the judgment is a batch of writ petitions of this court given in January, 1971. The petitioner now has filed this writ petition in which the validity of the amendment Act is not challenged. He, however, contends that he is not liable to tax under the Central Amendment act.

( 5 ) THE principal contention which this petitioner raises is whether item 9 (b) of iii Schedule of the Slate Act discriminates between hides and skins imported from outside the State and those manufactured or produced in the State. The contention Was that item 9 (b) provides for the levy of tax on the sale of hides and skins brought from outside the State and tanned inside the State, whereas if the raw hides and skins are locally purchased and tanned, there is no tax leviable on the tanned hides and skins as the untanned hides and skins in such cases alone are taxed. The result of this taxation scheme it is urged, is that a dealer who brings raw hides and skins from outside the State and tans them locally is taxed on the amount of the sale of such tanned hides and skins, whereas the locally purchased raw hides and skins and tanned are taxed on the amount of the purchase of the raw hides and skins the price of which compared to the price of tanned hides and skins would be very insignificant. Such taxation scheme therefore discriminates against the import of raw hides and skins for bringing them inside the State. This discrimination is offensive to Article 304 (a) insasmuch as the goods manufactured or produced locally get a more favourable treatment than the goods imported from other States. Strong reliance was placed upon a decision of he Supreme court in Firm A. T. B. Mehtab Majid and co. v. State of Madras.

( 6 ) NOW section 14 (iii) of the Central act declares "hides and skins, whether in a raw or dressed state" as of special importance in the course of inter-State trade. It is thus a declared goods.

( 7 ) SECTION 15 (a) of the Central Act would therefore be attracted to such declared goods and the State shall not be entitled to tax such hides and skins at more than one stage and at the rate of more than 3 percent.

( 8 ) ITEM 9 relates to hides and skins. Untanned hides and skins, according to it, can be taxed at the rate of 3 pies in the rupee when purchased by a tanner in the State at the point of purchase by the tanner and in all other cases at the point of purchase by the last dealer who buys them in the State.

( 9 ) TANNED hides and skins, which were not subjected to tax as untanned hides and skins,

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