1999 (1) TMI 436 - SC - VAT and Sales Tax

Demand of differential tax - Held that - Appeal dismissed. That the State Legislature had the power to amend the Andhra Pradesh General Sales Tax Act is not in dispute. It also is not disputed that the amendment made by the 1996 Act was in exercise of its legislative powers by the State Legislature. The validity of the amendment had not been questioned either in the writ petition or even before us. That being the fact situation, the grievance made by learned counsel for the petitioner to the effect that the demand of differential tax based on the amendment of entry 37 could not have been made, is wholly mis-conceived. It is settled-position that an assessee is liable to pay sales tax and the question whether he has collected it from consumer or not is of no consequence. His liability is by virtue of being an assessee under the Act.

Summary

The Supreme Court dismissed the writ petition challenging a sales tax amendment in Andhra Pradesh. The court upheld the State Legislature's power to make the amendment, stating that the demand for differential tax was valid. The petition was dismissed with costs of Rs. 5,000.