Under part XIX, Article 366 of Indian Constitution serves as a vital glossary providing precise definitions for various terms used throughout the Constitution . The article ensures clarity and consistency in interpreting constitutional provisions . By defining terms like "Scheduled Castes," "Scheduled Tribes," "taxation" and "goods" it aids in the uniform application of laws across the nation .

Understanding Article 366 is crucial for comprehending the Constitution's intent and scope . For instance Article 366(24) defines "Scheduled Castes," while Article 366(25) pertains to "Scheduled Tribes ." Similarly, Article 366(26C) introduced by the 102nd Amendment, defines "socially and educationally backward classes." These definitions play a significant role in implementing affirmative action policies and ensuring social justice .

Moreover Article 366(29A) expands the definition of "tax on the sale or purchase of goods," impacting the taxation framework . By providing these definitions Art 366 acts as a cornerstone for legal interpretation and application in India . Explore in-depth analysis of other Constitutional Articles.

Article 366 of Constitution: Definitions

In this Constitution, unless the context otherwise requires, the following expressions have, the meanings hereby respectively assigned to them, that is to say--

(1)"agricultural income" means agricultural income as defined for the purposes of the enactments relating to Indian income-tax;

(2)"an Anglo-Indian" means a person whose father or any of whose other male progenitors in the male line is or was of European descent but who is domiciled within the territory of India and is or was born within such territory of parents habitually resident therein and not established there for temporary purposes only;

(3)"article" means an article of this Constitution;

(4)"borrow" includes the raising of money by the grant of annuities, and "loan" shall be construed accordingly;

(4A)In this Constitution, unless the context otherwise requires, 'State' includes the Union territories and the National Capital Territory of Delhi, but does not include the States of Jammu and Kashmir, Nagaland, Manipur, Tripura, Mizoram and Arunachal Pradesh.[In article 366 of the Constitution, clause (4A) shall be omitted.]

(5)"clause" means a clause of the article in which the expression occurs;

(6)"corporation tax" means any tax on income, so far as that tax is payable by companies and is a tax in the case of which the following conditions are fulfilled:--

(a)that it is not chargeable in respect of agricultural income;

(b)that no deduction in respect of the tax paid by companies is, by any enactments which may apply to the tax, authorised to be made from dividends payable by the companies to individuals;

(c)that no provision exists for taking the tax so paid into account in computing for the purposes of Indian income-tax the total income of individuals receiving such dividends, or in computing the Indian income-tax payable by, or refundable to, such individuals;

(7)"corresponding Province", "corresponding Indian State" or "corresponding State" means in cases of doubt such Province, Indian State or State as may be determined by the President to be the corresponding Province, the corresponding Indian State or the corresponding State, as the case may be, for the particular purpose in question;

(8)"debt" includes any liability in respect of any obligation to repay capital sums by way of annuity and any liability under any guarantee, and "debt charges" shall be construed accordingly;

(9)"estate duty" means a duty to be assessed on or by reference to the principal value, ascertained in accordance with such rules as may be prescribed by or under laws made by Parliament or the Legislature of a State relating to the duty, of all property passing upon death or deemed, under the provisions of the said laws, so to pass;

(10)"existing law" means any law, Ordinance, order, bye-law, rule or regulation passed or made before the commencement of this Constitution by any Legislature, authority or person having power to make such a law, Ordinance, order, bye-law, rule or regulation;

(11)"Federal Court" means the Federal Court constituted under the Government of India Act, 1935;

(12)"goods" includes all materials, commodities, and articles;

(12A)“goods and services tax” means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption.

(13)"guarantee" includes any obligation undertaken before the commencement of this Constitution to make payments in the event of the profits of an undertaking falling short of a specified amount;

(14)"High Court" means any court which is deemed for the purposes of this Constitution to be a High Court for any State and includes--

(a)any Court in the territory of India constituted or reconstituted under this Constitution as a High Court, and

(b)any other Court in the territory of India which may be declared by Parliament by law to be a High Court for all or any of the purposes of this Constitution;

(15)"Indian State" means any territory which the Government of the Dominion of India recognised as such a State;

(16)"Part" means a part of this Constitution;

(17)"pension" means a pension, whether contributory or not, of any kind whatsoever payable to or in respect of any person, and includes retired pay so payable, a gratuity so payable and any sum or sums so payable by way of the return, with or without interest thereon or any other addition thereto, of subscriptions to a provident fund;

(18)"Proclamation of Emergency" means a Proclamation issued under clause (1) of article 352;

(19)"public notification" means a notification in the Gazette of India, or, as the case may be, the Official Gazette of a State;

(20)"railway" does not include--

(a)a tramway wholly within a municipal area, or

(b)any other line of communication wholly situate in one State and declared by Parliament by law not to be a railway;

[In article 366 of the Constitution, for clause (22), the following clause shall be substituted through Constitution (Twenty-Sixth Amendment) Act, 1971]

(22)"Ruler" means the Prince, Chief or other person who, at any time before the commencement of the Constitution (Twenty-sixth Amendment) Act, 1971, was recognised by the President as the Ruler of an Indian State or any person who, at any time before such commencement, was recognised by the President as the successor of such Ruler;

(23)"Schedule" means a Schedule to this Constitution;

(24)"Scheduled Castes" means such castes, races or tribes or parts of or groups within such castes, races or tribes as are deemed under article 341 to be Scheduled Castes for the purposes of this Constitution;

(25)"Scheduled Tribes" means such tribes or tribal communities or parts of or groups within such tribes or tribal communities as are deemed under article 342 to be Scheduled Tribes for the purposes of this Constitution;

(26)"securities" includes stock;

[In article 366 of the Constitution, clause (26A) shall be omitted.]

(26-A) "Services" means anything other than goods;

(26-B) "State" with reference to Articles 246-A, 268, 269, 269-A and Article 279-A includes a Union territory with Legislature;

(26C)"socially and educationally backward classes" means such backward classes as are so deemed under article 342A for the purposes of this Constitution;

(27)"sub-clause" means a sub-clause of the clause in which the expression occurs;

(28)"taxation" includes the imposition of any tax or impost, whether general or local or special, and "tax" shall be construed accordingly;

(29)"tax on income" includes a tax in the nature of an excess profits tax;

(29A)"tax on the sale or purchase of goods" includes--

(a)a tax on the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;

(b)a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(c)a tax on the delivery of goods on hire-purchase or any system of payment by installments;

(d)a tax on the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

(e)a tax on the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;

(f)a tax on the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made;

(30)"Union territory" means any Union territory specified in the First Schedule and includes any other territory comprised within the territory of India but not specified in that Schedule.

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Under the Indian Constitution , Article 366 functions as a dictionary within the Constitution, providing clear definitions to ensure consistent interpretation of its provisions. The article is essential for understanding the scope and application of various constitutional terms .

For example, Article 366(24) defines "Scheduled Castes" as groups identified under Article 341 enabling targeted affirmative action policies . Similarly, Article 366(25) defines "Scheduled Tribes" as per Article 342, ensuring their representation and welfare .

The inclusion of Article 366(26C) through the 102nd Amendment defines "socially and educationally backward classes," facilitating the identification and support of these groups under Article 342A.

Article 366(29A) expands the definition of "tax on the sale or purchase of goods" to include various transactions like works contracts and hire-purchase agreements . This broad definition allows states to levy taxes on these transactions impacting the country's taxation system .

By providing these definitions Article 366 of Constitution of India ensures that constitutional terms are uniformly understood and applied maintaining the integrity and consistency of legal interpretations across India .

Article 366 of Constitution: Landmark Cases 

These judgments have clarified the scope, application and significance of Article 366 of the Indian Constitution in the legal structure of India . Some of the most important and influential cases include :

• 20th Century Finance Corporation Ltd. v. State of Maharashtra (2000) : This case addressed the taxation of hire-purchase transactions under Article 366(29A). The Supreme Court upheld the state's authority to levy sales tax on such transactions, affirming the expanded definition of "sale" under this article.
• Imagic Creative Pvt. Ltd. v. Commissioner of Commercial Taxes (2008) :The Supreme Court examined the applicability of service tax and sales tax on composite contracts . It held that both taxes could be levied separately emphasizing the significance of Article 366(29A) in distinguishing between goods and services in taxation .
• State of Andhra Pradesh v. Kone Elevators India Pvt. Ltd. (2005) : This case dealt with the classification of elevator installation contracts. The Court ruled that such contracts are works contracts under Article 366(29A), allowing states to levy sales tax on the goods component.
• Association of Leasing and Financial Service Companies v. Union of India (2010) : The Supreme Court upheld the constitutional validity of service tax on leasing and hire-purchase transactions, reinforcing the interpretation of Article 366(29A) in delineating the scope of taxation powers between the Centre and the States.

Article 366 of the Indian Constitution plays a pivotal role in ensuring clarity and uniformity in the interpretation of constitutional terms . By providing precise definitions it aids in the consistent application of laws and policies across the nation .

The definitions under Article 366 of Constitution of India have far-reaching implications . For instance, the identification of "Scheduled Castes" and "Scheduled Tribes" under clauses (24) and (25) respectively, forms the basis for implementing affirmative action and reservation policies, promoting social justice and equality .

The inclusion of Article 366(26C) has further expanded the scope to include "socially and educationally backward classes," enabling targeted welfare measures for these groups .

Moreover Article 366(29A) has significantly impacted the taxation framework by broadening the definition of "sale," allowing states to levy taxes on various transactions like works contracts and hire-purchase agreements . This has led to a more comprehensive and equitable taxation system.

In essence, Art 366 serves as the backbone for interpreting and implementing constitutional provisions ensuring that the Constitution remains a living document adaptable to the evolving needs of society .

Article 366 of Constitution: Developments and Amendments 

Over the years, Article 366 of Indian Constitution has undergone several amendments to accommodate the changing socio-economic landscape of the country.

The 46th Amendment Act, 1982 introduced Article 366(29A), expanding the definition of "tax on the sale or purchase of goods ." This amendment allowed states to levy sales tax on various transactions, including works contracts, hire-purchase agreements and the transfer of the right to use goods. This change addressed the challenges posed by the narrow interpretation of "sale" and ensured a broader tax base for states .

The 102nd Amendment Act, 2018 added Article 366(26C) defining "socially and educationally backward classes ." This amendment aimed to provide constitutional recognition to these groups, facilitating their inclusion in welfare schemes and reservation policies .

These amendments reflect the dynamic nature of the Constitution adapting to the evolving needs of the nation . By updating definitions within Article 366 of Constitution of India it ensures that its provisions remain relevant and effective in addressing contemporary issues .

Conclusion 

Article 366 of Indian Constitution serves as a foundational element, providing clear and precise definitions that guide the interpretation and application of the Constitution . Its role is crucial in ensuring consistency and clarity across various legal and administrative frameworks .

The definitions under Article 366 have profound implications on governance, social justice and taxation . By delineating terms like "Scheduled Castes," "Scheduled Tribes" and "socially and educationally backward classes," it lays the groundwork for affirmative action and inclusive policies . The expanded definition of "tax on the sale or purchase of goods" under Article 366(29A) has significantly influenced the country's taxation system allowing for a more comprehensive and equitable approach .

The amendments to Article 366 demonstrate the Constitution's adaptability ensuring that it evolves in response to the changing needs of society. As India continues to progress, Article 366 will remain integral in shaping policies and laws that uphold the principles of justice, equality and inclusivity .

Understanding Article 366 of Constitution of India is essential for anyone seeking to comprehend the Constitution's structure and functioning. Its definitions form the bedrock upon which the edifice of Indian law and governance stands.