The Indian Supreme Court ordered the federal government to reconsider its taxation strategy and determine whether it placed an undue burden on newspapers on December 6, 1984. The petitioners, who included employees and newspaper companies, claimed that an import duty had a negative impact on freedom of speech and expression by driving up newspaper costs and decreasing circulation. The Court reasoned that charges on newspaper publication can be imposed by the government, but they must be fair in order to prevent restrictions on the right to free speech.
However, the Court noted that neither the petitioners nor the respondents had provided evidence of the disproportionate nature of the tax burdens, and as a result, the government was urged to reconsider its taxing strategy with regard to publications.
indian express newspapers vs union of india Case Facts
- Previously, there were no import charges or taxes of any type imposed on newspapers by the Indian government. But in 1985, the government decided to levy additional auxiliary charges in addition to import duties on newspapers that were imported from overseas.
- The decision by the government to tax newspapers forced the publishers to raise the price of their publications. As a result, the newspapers’ circulation dropped, which in turn reduced the company’s earnings.
- As a result, the newspaper trust’s shareholders, employees, and other stakeholders petitioned the Supreme Court to declare the tax unconstitutional.
- The defendants said that it was their obligation to impose a tax on the newspapers, whereas the petitioners asked the court to declare the charge unlawful because it infringed their freedom to speech and expression.
indian express newspapers vs union of india Issues
- Does the introduction of import duties on newsprint constitute an unjustified restriction on the press, thereby violating the right to freedom of speech and expression granted by article 19(1)(a) of the indian constitution?
- Whether the application of import duties on newsprint violates the Indian Constitution’s Article 14 (right to equality) by disproportionately harming smaller and regional newspapers in comparison to larger publishers.
- Whether the government’s ability to impose taxes under article 265 of the indian constitution can be used to suppress journalistic freedom even though it isn’t specifically stated in Article 19(2) of the Constitution as a legal limitation.
Contentions by the Parties
Petitioner:
- The petitioners said that the government’s taxation of their newspapers resulted in a decline in their circulation, so constituting a violation of their right to free speech and expression under article 19(1)(a) of the indian constitution.
- According to article 19(1)(g) of the indian constitution, the petitioners alleged that the government had infringed upon their freedom to trade. The petitioners were forced to raise the price since the government had levied a tax on newspapers. The revenue of the newspaper company decreased as a result of many consumers refusing to buy the newspapers at the higher price.
- Moreover, they argued that the government’s decision to tax the newspapers was motivated by its desire to limit the petitioners’ freedom of speech and expression as well as its desire to keep the general public from having access to the information that the newspapers published.
Respondent:
- The respondents contended that the freedom of press was not going to be restricted by the government. Rather, they argued that the tax was imposed to serve the public interest and boost government revenue.
- In addition, the government maintained that it was required by the Constitution to impose taxes and that the tax was reasonable.
indian express newspapers vs union of india Judgment
Ratio Decidendi:
- The indian express newspapers vs union of india on December 6, 1984, sent a directive to the central government, instructing the gazetteer to reevaluate the tax policy on water exports.
- The court stressed that it was necessary to investigate whether tax rules infringe against the freedoms of speech and expression, particularly press freedom. The clause’s proportionality embodies the adjudication principle that connects the right to free speech and expression to the media’s ongoing function in a democracy.
- The ruling highlights how crucial it is to make sure that laws and regulations, such as taxation, do not restrict or impede the media’s capacity to carry out its crucial roles within democratic systems.
Obiter Dicta:
- The effect of import duties on newspapers on freedom of speech and expression was taken into consideration by the Supreme Court in its obiter opinion.
- The Court acknowledged that these duties might stifle ideas and information in newspapers, which would have an impact on social order. These observations, however, are only warning remarks issued by the Court during its discussion of the case’s broad ramifications and do not form the basis of the ruling.
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