Provisions imposing higher rate of sales tax on imported goods are constitutionally valid.

D. Murugesan, J.

These writ petitions in batch are taken up together for disposal, as they raise common questions.

2. M/s Sony India Limited, Chennai is the petitioner in W.P.Nos.17424 & 17425 of 2003. It is a registered dealer under the provisions of the Tamil Nadu General Sales Tax Act, 1959 (for short, TNGST Act) and is an assessee on the file of the Commercial Tax Officer, Egmore-II Assessment Circle, Chennai. According to the petitioner, it is a fully owned subsidiary of M/s Sony Corporation of Japan and is engaged in the manufacture and sale of colour television sets, audio products and other consumer electronic products. It inter alia imports and sells LCD projectors, handy cameras, projection televisions, some models of car stereos and high-end audio systems. It imports the above goods from abroad at New Delhi and Mumbai and the imported goods are packed in accordance with the Weights and Measures Rules affixing MRP stickers, etc., and are despatched to a network of branch offices/warehouses located in various parts of India.

.3. M/s Nokia India Private Limited, Chennai is the petitioner in W.P.Nos.16825 & 16826 of 2003. It is a registered dealer under the provisions of the TNGST Act and is an assessee on the file of the Commercial Tax Officer, Anna Salai-III Assessment Circle, Chennai. According to the petitioner, it is engaged in the business of importing and selling handsets of cellular phones from abroad at New Delhi and from New Delhi, the handsets are despatched to a network of branch offices/warehouses located in various parts of India. The handsets imported at Delhi are also stock transferred to the branch/warehouse of the petitioner at Chennai for sales within the State of Tamil Nadu.

4. According to M/s Sony India Limited and M/s Nokia India Private Limited, the goods classified under Entry 14(vi) and (viii) of Part-D of the First Schedule to the TNGST Act are liable for sales tax at the rate of 12% on first sales made inside the State of Tamil Nadu and only in case the imported goods classifiable under Entry 9 of the Eleventh Schedule are liable to tax at the rate of 20% on first sales inside the State of Tamil Nadu. On the basis of the clarification dated 27. 2002 issued under Section 28-A of the TNGST Act by the Special Commissioner and Commissioner of Commercial Taxes, Chennai, if car audio systems, cordless phones, handy cameras, computer monitors and cellular phones are imported goods having foreign markings, then, when sold in Tamil Nadu, they will be liable for 20% sales tax under Entry 9 of the Eleventh Schedule to the Act. As the petitioners are liable to pay sales tax only at the rate of 12% in terms of Entry 14(vi) and (viii) of Part-D of the First Schedule, they had collected and paid sales tax at the rate of 12% on the goods imported from outside India at Delhi and Mumbai and stock transferred to Chennai and sold in Chennai and the demand for payment of differential tax had resulted in burden on consumers.

5. Aggrieved by the clarification dated 27. 2002, they approached the Tamil Nadu Taxation Special Tribunal by filing O.P.Nos.969 & 970 of 2002 & 564 & 565 of 2004 praying to declare the provisions contained in Entry 14(vi) of Part-D of the First Schedule to the TNGST Act as classifiable under Entry 8 of Part-G of the First Schedule to the said Act during the period from 23. 2002 to 30.6.2002 and as classifiable under Entry 9 of Eleventh Schedule of the said Act with effect from 7. 2002 prescribing 20% rate of sales tax on the sale of respective imported goods from Delhi/Mumbai and stock transferred and sold in Chennai are violative of Articles 14, 301 and 304 of the Constitution of India and void and unenforceable. By orders dated 30.4.2003 and 25. 2003, the Taxation Tribunal upheld the provisions of levy of higher rates of sales tax at 20%. Challenging the said orders, they have filed the above writ petitions seeking to set aside the orders of the Taxation Tribunal and for a co