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The legal framework also clarifies that activities like blending or simple operations do not necessarily produce a new, saleable commodity or a commodity that signifies justice ["Commissioner of Income Tax, Chennai VS Vinbros and Company, No. 23, Romain Rolland Street, Pondicherry - Madras"].
Analysis and Conclusion:
References:- ["K. S. FILMS VS STATE OF MAHARASHTRA - Bombay"]- ["B. S. Bajaj And Sons VS Commissioner Of Income-tax - Punjab and Haryana"]- ["Hindustan Aluminimum Corporation LTD. VS State Of U. P. - Supreme Court"]- ["LARSEN & TOUBRO LTD. VS PRINCIPAL SECRETARY, DEPT. OF INDUSTRIES & COMMERCE - Karnataka"]- ["HINDUSTAN ALUMINIUM CORPORATION LTD. vs STATE OF UTTAR PRADESH & ANR. - Supreme Court"]- ["COMMSSIONER OF INCOME-TAX vs GUJARAT STATE EXPORT CORP.LTD - Gujarat"]- ["COMMISSIONER OF INCOME TAX vs GUJARAT STATE EXPORT CORPN - Gujarat"]- ["COMMISSIONER OF INCOME TAX vs GUJARAT STATE EXPORT CORPN. LTD - Gujarat"]- ["Collector of Central Excise VS Mahavir Minerals Store Supply Co. - Customs, Excise And Gold Appellate Tribunal"]- ["Commissioner of Income Tax, Chennai VS Vinbros and Company, No. 23, Romain Rolland Street, Pondicherry - Madras"]
In the realm of law, certain timeless principles stand as bulwarks against corruption and commercialization. One such doctrine rings clear: justice is not a saleable commodity. This phrase, echoed in judicial wisdom, reminds us that fairness, impartiality, and procedural integrity form the bedrock of judicial and administrative proceedings. But what does this mean in practice? And how does it contrast with everyday commercial contexts where items routinely become saleable commodities?
This blog delves into the legal foundations of this principle, drawing from established jurisprudence, constitutional values, and contrasting tax law interpretations. Whether you're navigating administrative disputes or simply curious about the sanctity of justice, understanding this concept is crucial. Note: This is general information and not specific legal advice; consult a qualified lawyer for your situation.
The idea that justice is not a saleable commodity underscores that judicial and quasi-judicial processes cannot be influenced by monetary gain or material exchange. It aligns with the fundamental tenets of natural justice, ensuring decisions are made impartially and transparently. As articulated in key jurisprudence, the function of the judicial and quasi-judicial authorities is to secure justice with fairness, and these principles act as a kind of code of fair administrative procedure. DHARAMPAL SATYAPAL LTD. VS DEPUTY COMMISSIONER OF CENTRAL EXCISE, GAUHATI - 2015 0 Supreme(SC) 437
Core elements include:- Impartiality and fairness: Justice demands decisions free from bias or purchase.- Procedural integrity: No shortcuts through payment or compromise. DHARAMPAL SATYAPAL LTD. VS DEPUTY COMMISSIONER OF CENTRAL EXCISE, GAUHATI - 2015 0 Supreme(SC) 437
This principle prohibits treating justice as a tradable good, emphasizing its role in preventing miscarriage of justice. Courts have reinforced that principles of natural justice provide a great humanising factor intended to invest law with fairness to secure justice and to prevent miscarriage of justice. DHARAMPAL SATYAPAL LTD. VS DEPUTY COMMISSIONER OF CENTRAL EXCISE, GAUHATI - 2015 0 Supreme(SC) 437
At the heart of this doctrine lie the twin pillars of natural justice: nemo judex in causa sua (no one should be a judge in their own cause) and audi alteram partem (hear the other side). These are not mere formalities but moral imperatives rooted in ancient jurisprudence from thinkers like Aristotle and Justinian. DHARAMPAL SATYAPAL LTD. VS DEPUTY COMMISSIONER OF CENTRAL EXCISE, GAUHATI - 2015 0 Supreme(SC) 437
Constitutional safeguards, such as Articles 14 (equality) and 21 (life and liberty), further embed this in India's rule of law framework. Any deviation risks undermining legitimacy. DHARAMPAL SATYAPAL LTD. VS DEPUTY COMMISSIONER OF CENTRAL EXCISE, GAUHATI - 2015 0 Supreme(SC) 437Sri Narsimha Wines VS Prohibition and Excise Superintendent, Medak District at Sangareddy - 2001 0 Supreme(AP) 1283
Courts consistently hold that natural justice principles are implied mandatory requirements, overriding even statutory silence. Fairness legitimizes administrative and judicial acts, preventing them from becoming mere transactions. DHARAMPAL SATYAPAL LTD. VS DEPUTY COMMISSIONER OF CENTRAL EXCISE, GAUHATI - 2015 0 Supreme(SC) 437Kahkashan Tabassum VS Registrar, Maulana Azad National University - 2017 0 Supreme(AP) 621A. K. Kraipak VS Union Of India - 1969 0 Supreme(SC) 213
For instance, the right to be heard is fundamental, ensuring proceedings remain humanized and just. This stands in stark contrast to commercial spheres, where transformation often creates saleable goods—a point we'll explore next.
While justice remains unsellable, tax and sales laws frequently grapple with what qualifies as a saleable commodity. These cases highlight the distinction, reinforcing justice's unique status.
In mining, ore without being mined may not be a commercially saleable commodity but when mined it is definitely a commercially saleable commodity. ANDAMAN AND NICOBAR ISLANDS FOREST AND PLANTATION DEVELOPMENT CORPN. LTD. VS COMMISSIONER OF INCOME TAX - 2005 Supreme(Cal) 57 Similarly, converting trees into logs via de-barking, seasoning, and cutting produces a new commercial article or thing, qualifying for tax deductions under Sections 32A, 80HH, and 80J. ANDAMAN AND NICOBAR ISLANDS FOREST AND PLANTATION DEVELOPMENT CORPN. LTD. VS COMMISSIONER OF INCOME TAX - 2005 Supreme(Cal) 57
Other examples include:- Tanning bark bought for manufacturing dressed hides: Part of an integrated activity of buying and disposal, making the buyer a dealer under sales tax laws, even if not resold directly. State of A. P. VS H. Abdul Bakhi And Bros - 1964 Supreme(SC) 128- Fabricated metals: Saleable in forms distinct from primary states. HINDUSTAN ALUMINIUM CORPORATION LTD. vs STATE OF UTTAR PRADESH & ANR.- Kendu leaves processing: Mere sorting and drying does not create a new saleable commodity, distinguishing it from true production. SAGARMAL AGRAWAL VS UNION OF INDIA (UOI) - 1999 Supreme(Ori) 434
Yet, courts explicitly exclude justice from this realm. Landmark observations state: Wars are not merchantable, nor justice saleable, nor divine grace marketable. Lawrence Messy VS Diocese of Delhi - 2019 Supreme(Del) 2185Central Leather Research Institute VS Lipika Mondal - 2017 Supreme(Cal) 409 Spiritual, policing, or justicing activities are prima facie, pushed out of trade-like definitions, shifting focus to non-commercial essences. Lawrence Messy VS Diocese of Delhi - 2019 Supreme(Del) 2185
This contrast illuminates why justice defies commodification—it's a public good, not a market product like processed ore or logs.
Natural justice isn't rigid; courts apply it flexibly based on facts. A full hearing may be dispensed if futile or prejudicial. Vijay Kumar Bhati VS Commissioner of Income Tax - 2002 0 Supreme(SC) 2244CHAIRMAN, STATE BANK OF INDIA VS M. J. JAMES - 2021 8 Supreme 103 However, these carve-outs preserve the core: justice remains non-saleable, with fairness as the north star.
In industrial disputes, entities like churches aren't industries where justice could be analogized to trade, as justice saleable is rejected outright. Lawrence Messy VS Diocese of Delhi - 2019 Supreme(Del) 2185
In conclusion, the doctrine that justice is not a saleable commodity safeguards the soul of law. It ensures decisions serve equity, not exchange. While commercial law transforms raw materials into marketable items, justice endures as an ethical imperative. For tailored guidance, seek professional legal counsel.
References:- DHARAMPAL SATYAPAL LTD. VS DEPUTY COMMISSIONER OF CENTRAL EXCISE, GAUHATI - 2015 0 Supreme(SC) 437, Vijay Kumar Bhati VS Commissioner of Income Tax - 2002 0 Supreme(SC) 2244, Kahkashan Tabassum VS Registrar, Maulana Azad National University - 2017 0 Supreme(AP) 621, Sri Narsimha Wines VS Prohibition and Excise Superintendent, Medak District at Sangareddy - 2001 0 Supreme(AP) 1283, A. K. Kraipak VS Union Of India - 1969 0 Supreme(SC) 213, ANDAMAN AND NICOBAR ISLANDS FOREST AND PLANTATION DEVELOPMENT CORPN. LTD. VS COMMISSIONER OF INCOME TAX - 2005 Supreme(Cal) 57, State of A. P. VS H. Abdul Bakhi And Bros - 1964 Supreme(SC) 128, HINDUSTAN ALUMINIUM CORPORATION LTD. vs STATE OF UTTAR PRADESH & ANR., SAGARMAL AGRAWAL VS UNION OF INDIA (UOI) - 1999 Supreme(Ori) 434, Lawrence Messy VS Diocese of Delhi - 2019 Supreme(Del) 2185, Central Leather Research Institute VS Lipika Mondal - 2017 Supreme(Cal) 409
#JusticeNotForSale, #NaturalJustice, #LegalFairness
itself is converted into another saleable commodity or is need as an aid to or ingredient in the manufacturing process for producing any commodity which is saleable. ... integrated activity of buying and disposal The commodity may itself be converted into another saleable commodity, or it may be used as an ingredient or in aid of a manufacturing process leading to the production of such saleable commodity." ... In other words, what ....
Accordingly, it could not be held that the assessee was manufacturing any new commodity saleable as such. ... 12. ... that the benefit would be available if the process involved was manufacture of a new commodity, saleable as such. ... Since, the assessee was not manufacturing any new commodity, saleable as such the letter of the Minister of State for Finance did not help the assessee and on the basis of this letter the assessee co....
The Division Bench in Salgaocar's [1996] 217 ITR 849 (Karn); [1996] 41 Kar LJ 79 has ruled that the test is not whether what is produced as a result of the process carried out in the plant becomes more saleable from an otherwise less saleable article. ... from an otherwise less saleable article. ... ... This judgment is a complete answer to "process", "manufacture" arguments and to the argument of "saleable commodity" as pointed out by the learned Government Advocate. The homogenisati....
In the said case mining, processing of ore was held to be a production though the ore did not lose its characteristics and remained ore. Ore without being mined may not be a commercially saleable commodity but when mined it is definitely a commercially saleable commodity. ... The tea that was purchased from the market for the purpose of being blended is equally a saleable commodity and could have been sold even without blending and it does ....
it was saleable fabricated forms in which it was saleable as a new commodity. ... When such a notification refers to a metal it refers to the metal in the primary or original form in which it is saleable and not to any subsequently fabricated form. [133 H; 134 F] ... Each commercial commodity here becomes a separate object of taxation in a series of sales of that commercial commodity so long as it retains its identity as that #H....
the integnraed activity of buying and disposal: The commodity may itself be convened into another saleable commodity, or it may be used as an ingredient or in aid of a manufacturing process leading to the production of such saleable commodity. ... Therefore, in the view of the High Court if a dealer buys any commodity included in Rule 5(2) for consumption in his business but not for sale he is not to be regarded as engaged in the business of buying, ....
have become a saleable commodity. ... JUSTICE ADARSH KUMAR GOEL. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. ... JUSTICE ADARSH KUMAR GOEL. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. ... JUSTICE ADARSH KUMAR GOEL. HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. ... a potable one and but for the blending, the commodity could not p style="position:absolute;white-space:pre;margin:0;padding:0;top:540pt;left
In all those notifications the framers of the notifications followed the scheme that one clause dealt with the metal in its original saleable form and another separate clause dealt with fabricated forms in which it was saleable as a new commodity. ... In the circumstances, the inference is irresistible that when such a notification refers to a metal, it refers to the metal in a primary or original form in which it is saleable and not to any subsequently fabricated form. ... Each commercial com....
The commodity may itself be converted into another saleable commodity, or it may be used as an ingredient or in aid of a manufacturing process leading to the production of such saleable commodity." ... 9. ... Mere buying for personal consumption, i.e. without a profit motive, will not make a person dealer within the meaning of the Act, but a person who consumes a commodity bought by him in the course of his trade, or use in manufacturing another commodity#HL....
and saleable for bidi manufacturing are not processing. ... ... (b) The processing is carried out for making the leaves a saleable and marketable commodity. ... (c) Such operations do not result in change of product. ... Wherever a commodity undergoes a change as a result of some operation performed on it or in regard to it, such operation would amount to processing of the commodity. The nature and extent of the change is not material. ... realize I....
Wars are not merchantable, nor justice saleable, nor divine grace marketable. Spiritual undertakings, casual undertakings, domestic undertakings, war waging, policing, justicing, legislating, tax collecting and the like are, prima facie, pushed out. So, the problem shifts to what is "analogous to trade or business."
So, the problem shifts to what is "analogous to trade or business". Wars are not merchantable, nor justice saleable, nor divine grace marketable. Spiritual undertakings, casual undertakings, domestic undertakings, war waging, policing, justicing, legislating, tax collecting and the like are, prima facie, pushed out. As we proceed to the next set of cases we come upon the annotation of other expressions like 'calling' and get to grips with the specific organisations which call for identification in the several appeals before us.
The vacuum cleaners are not ‘commodity in packaged form’ within the meaning of the term in Section 2(b) of the Act. Vacuum cleaner is always sold by piece and not by way of measure or numbers, and they are kept in paper boxes or cartons only to protect them from dirt or dust during transit and while storing and handling. The commodity in packaged form is saleable only in packaged form and not otherwise. As the product is not covered by the Act or the Rules, the Company is not obliged to comply with the provisions of Section 39 of the Act.
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