9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1975 (9) TMI 168 - HC - VAT and Sales Tax
Issues:
Challenge to the West Bengal Taxation Laws (Amendment) Act, 1972 regarding withdrawal of exemptions in entry 25 of Schedule I to the Bengal Finance (Sales Tax) Act, 1941. Analysis: The petitioners sought a declaration that the West Bengal Taxation Laws (Amendment) Act, 1972, which withdrew exemptions in entry 25 of Schedule I to the Bengal Finance (Sales Tax) Act, 1941, was ultra vires and should be struck down. The petitioners argued that the additional fee imposed under the West Bengal Excise Foreign Liquor (Licence Fee) Rules, 1942, on the sale of potable liquor amounted to double taxation when combined with the sales tax imposed by the impugned Act of 1972. They contended that the omission of the exemption under entry 25 was illegal and ultra vires. The petitioners claimed that the trade they carried on did not have an element of permanency, as their licenses were renewed periodically, and therefore, they should not be considered as dealers under the Acts in question. The court rejected the petitioners' arguments, stating that the additional fee imposed under the Excise Rules could not be equated with the sales tax under the impugned Act of 1972. The court also held that the element of permanency or continuity in the trade was not a requirement to be considered a dealer under the Sales Tax Act. Additionally, the court noted that beer was included in the definition of liquor under the Bengal Excise Act, and therefore, sales tax could be imposed on beer as well. As a result, the court discharged the rule, finding that all points raised by the petitioners failed. Furthermore, the court clarified that an injunction granted against the petitioners regarding the charging of sales tax on country spirit would continue, but the petitioners would be liable to pay sales tax on other liquors as specified in item 37 of Schedule II of the Act of 1972. The petitioners were permitted to collect the said tax from their customers. The court also mentioned that a similar order would govern another related rule with identical points. In conclusion, the court dismissed the petitions, stating that the petitioners failed to establish their arguments against the validity of the West Bengal Taxation Laws (Amendment) Act, 1972, and upheld the imposition of sales tax on specified liquors.
|
