Report No. 61
7.6. Parliament competent to set up check-post under the Central Act.-
It seems to us, however, that the position should be considered separately with reference to the Central Sales Tax Act and with reference to the State Sales Tax Acts. So far as the position under the Central Sales Tax Act is concerned, it is obvious that the creation of check-posts and the conferment of other powers including, if necessary, powers for the seizure of goods, falls within the competence of Parliament. Whether or not such a power is incidental to the power to levy taxes, is, in the case of Parliament, immaterial in the present context because, if Union list entry 92A does not give the power, Parliament has it under its residuary legislative power.
What precise amendments should be made to provide for such check-posts and to confer such powers is not a matter with which we are concerned at the moment, and we should make it clear that any provisions that may be proposed in this regard should take care to comply with the fundamental rights, particularly, Articles 19 and 31 of the Constitution. But legislative competence of Parliament cannot be doubted.