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1992 (11) TMI 254 - SC - VAT and Sales Tax


  1. 2023 (5) TMI 138 - SC
  2. 2022 (8) TMI 168 - SC
  3. 2020 (12) TMI 140 - SC
  4. 2020 (6) TMI 181 - SC
  5. 2018 (3) TMI 162 - SC
  6. 2016 (8) TMI 636 - SC
  7. 2015 (10) TMI 2687 - SC
  8. 2015 (8) TMI 749 - SC
  9. 2015 (2) TMI 388 - SC
  10. 2014 (5) TMI 265 - SC
  11. 2013 (9) TMI 853 - SC
  12. 2008 (8) TMI 21 - SC
  13. 2008 (3) TMI 454 - SC
  14. 2008 (1) TMI 2 - SC
  15. 2007 (8) TMI 440 - SC
  16. 2007 (5) TMI 18 - SC
  17. 2007 (2) TMI 73 - SC
  18. 2006 (8) TMI 302 - SC
  19. 2006 (5) TMI 182 - SC
  20. 2004 (4) TMI 1 - SC
  21. 2004 (1) TMI 365 - SC
  22. 2004 (1) TMI 703 - SC
  23. 2002 (5) TMI 639 - SC
  24. 2001 (1) TMI 248 - SC
  25. 2000 (5) TMI 980 - SC
  26. 2000 (2) TMI 729 - SC
  27. 1998 (8) TMI 505 - SC
  28. 1996 (9) TMI 510 - SC
  29. 1996 (4) TMI 419 - SC
  30. 1996 (2) TMI 526 - SC
  31. 1993 (5) TMI 157 - SC
  32. 1992 (11) TMI 257 - SC
  33. 2024 (9) TMI 545 - HC
  34. 2024 (5) TMI 927 - HC
  35. 2024 (8) TMI 776 - HC
  36. 2024 (1) TMI 816 - HC
  37. 2024 (1) TMI 177 - HC
  38. 2023 (10) TMI 722 - HC
  39. 2023 (8) TMI 312 - HC
  40. 2023 (5) TMI 753 - HC
  41. 2023 (9) TMI 1276 - HC
  42. 2023 (4) TMI 344 - HC
  43. 2022 (12) TMI 595 - HC
  44. 2022 (10) TMI 379 - HC
  45. 2022 (6) TMI 701 - HC
  46. 2022 (5) TMI 397 - HC
  47. 2022 (5) TMI 1359 - HC
  48. 2022 (3) TMI 1313 - HC
  49. 2022 (1) TMI 1117 - HC
  50. 2021 (11) TMI 170 - HC
  51. 2021 (10) TMI 318 - HC
  52. 2021 (10) TMI 1073 - HC
  53. 2021 (6) TMI 381 - HC
  54. 2021 (4) TMI 261 - HC
  55. 2020 (8) TMI 346 - HC
  56. 2020 (6) TMI 328 - HC
  57. 2020 (6) TMI 119 - HC
  58. 2020 (4) TMI 799 - HC
  59. 2020 (11) TMI 798 - HC
  60. 2020 (3) TMI 6 - HC
  61. 2019 (9) TMI 171 - HC
  62. 2019 (8) TMI 376 - HC
  63. 2019 (7) TMI 162 - HC
  64. 2019 (4) TMI 579 - HC
  65. 2019 (3) TMI 24 - HC
  66. 2019 (2) TMI 924 - HC
  67. 2018 (10) TMI 1702 - HC
  68. 2018 (9) TMI 628 - HC
  69. 2018 (7) TMI 1705 - HC
  70. 2018 (5) TMI 1865 - HC
  71. 2018 (5) TMI 1797 - HC
  72. 2018 (5) TMI 84 - HC
  73. 2018 (4) TMI 887 - HC
  74. 2018 (5) TMI 176 - HC
  75. 2018 (1) TMI 1049 - HC
  76. 2018 (5) TMI 278 - HC
  77. 2017 (12) TMI 1444 - HC
  78. 2017 (12) TMI 1847 - HC
  79. 2018 (2) TMI 451 - HC
  80. 2018 (1) TMI 339 - HC
  81. 2017 (9) TMI 1443 - HC
  82. 2018 (2) TMI 370 - HC
  83. 2017 (5) TMI 734 - HC
  84. 2017 (4) TMI 1321 - HC
  85. 2017 (5) TMI 1396 - HC
  86. 2017 (4) TMI 195 - HC
  87. 2017 (4) TMI 7 - HC
  88. 2017 (5) TMI 996 - HC
  89. 2017 (2) TMI 1365 - HC
  90. 2017 (2) TMI 814 - HC
  91. 2017 (2) TMI 82 - HC
  92. 2017 (1) TMI 336 - HC
  93. 2016 (10) TMI 1248 - HC
  94. 2016 (10) TMI 853 - HC
  95. 2016 (9) TMI 1249 - HC
  96. 2016 (10) TMI 85 - HC
  97. 2016 (9) TMI 1084 - HC
  98. 2016 (9) TMI 355 - HC
  99. 2016 (7) TMI 715 - HC
  100. 2016 (6) TMI 220 - HC
  101. 2016 (4) TMI 1205 - HC
  102. 2016 (2) TMI 1152 - HC
  103. 2016 (4) TMI 967 - HC
  104. 2016 (7) TMI 74 - HC
  105. 2015 (12) TMI 470 - HC
  106. 2015 (9) TMI 256 - HC
  107. 2015 (8) TMI 447 - HC
  108. 2015 (6) TMI 583 - HC
  109. 2015 (5) TMI 882 - HC
  110. 2015 (11) TMI 46 - HC
  111. 2015 (3) TMI 301 - HC
  112. 2015 (3) TMI 210 - HC
  113. 2015 (4) TMI 526 - HC
  114. 2015 (1) TMI 928 - HC
  115. 2015 (2) TMI 796 - HC
  116. 2015 (2) TMI 473 - HC
  117. 2015 (4) TMI 742 - HC
  118. 2014 (11) TMI 1070 - HC
  119. 2014 (11) TMI 393 - HC
  120. 2014 (9) TMI 1052 - HC
  121. 2014 (7) TMI 1373 - HC
  122. 2014 (9) TMI 619 - HC
  123. 2014 (4) TMI 447 - HC
  124. 2014 (7) TMI 112 - HC
  125. 2014 (10) TMI 765 - HC
  126. 2014 (6) TMI 589 - HC
  127. 2014 (3) TMI 1043 - HC
  128. 2014 (4) TMI 917 - HC
  129. 2014 (7) TMI 700 - HC
  130. 2014 (7) TMI 969 - HC
  131. 2013 (12) TMI 1586 - HC
  132. 2014 (7) TMI 816 - HC
  133. 2013 (11) TMI 1659 - HC
  134. 2013 (11) TMI 1004 - HC
  135. 2014 (7) TMI 278 - HC
  136. 2013 (11) TMI 771 - HC
  137. 2015 (2) TMI 52 - HC
  138. 2013 (7) TMI 492 - HC
  139. 2014 (9) TMI 373 - HC
  140. 2013 (1) TMI 708 - HC
  141. 2014 (9) TMI 420 - HC
  142. 2013 (11) TMI 1002 - HC
  143. 2012 (11) TMI 1040 - HC
  144. 2014 (9) TMI 245 - HC
  145. 2014 (5) TMI 611 - HC
  146. 2013 (5) TMI 32 - HC
  147. 2012 (10) TMI 493 - HC
  148. 2012 (8) TMI 888 - HC
  149. 2014 (9) TMI 227 - HC
  150. 2014 (5) TMI 302 - HC
  151. 2012 (7) TMI 854 - HC
  152. 2014 (9) TMI 109 - HC
  153. 2012 (7) TMI 671 - HC
  154. 2014 (5) TMI 911 - HC
  155. 2012 (11) TMI 978 - HC
  156. 2011 (12) TMI 465 - HC
  157. 2014 (10) TMI 810 - HC
  158. 2014 (9) TMI 110 - HC
  159. 2014 (5) TMI 496 - HC
  160. 2011 (9) TMI 887 - HC
  161. 2011 (9) TMI 883 - HC
  162. 2013 (12) TMI 443 - HC
  163. 2014 (7) TMI 321 - HC
  164. 2011 (8) TMI 995 - HC
  165. 2011 (4) TMI 1235 - HC
  166. 2011 (4) TMI 1267 - HC
  167. 2011 (4) TMI 566 - HC
  168. 2011 (4) TMI 1238 - HC
  169. 2011 (3) TMI 1506 - HC
  170. 2011 (3) TMI 1526 - HC
  171. 2011 (3) TMI 1398 - HC
  172. 2011 (2) TMI 1311 - HC
  173. 2011 (2) TMI 1296 - HC
  174. 2011 (1) TMI 1196 - HC
  175. 2011 (1) TMI 1190 - HC
  176. 2010 (10) TMI 930 - HC
  177. 2010 (9) TMI 985 - HC
  178. 2010 (6) TMI 737 - HC
  179. 2010 (5) TMI 854 - HC
  180. 2010 (4) TMI 969 - HC
  181. 2010 (3) TMI 1001 - HC
  182. 2010 (2) TMI 1094 - HC
  183. 2010 (2) TMI 1070 - HC
  184. 2009 (10) TMI 844 - HC
  185. 2009 (10) TMI 876 - HC
  186. 2009 (9) TMI 880 - HC
  187. 2009 (9) TMI 933 - HC
  188. 2009 (6) TMI 16 - HC
  189. 2009 (3) TMI 925 - HC
  190. 2008 (12) TMI 148 - HC
  191. 2008 (7) TMI 938 - HC
  192. 2008 (3) TMI 638 - HC
  193. 2008 (2) TMI 350 - HC
  194. 2008 (1) TMI 835 - HC
  195. 2007 (10) TMI 579 - HC
  196. 2006 (9) TMI 518 - HC
  197. 2006 (6) TMI 489 - HC
  198. 2006 (5) TMI 461 - HC
  199. 2006 (2) TMI 607 - HC
  200. 2005 (2) TMI 785 - HC
  201. 2005 (2) TMI 810 - HC
  202. 2004 (11) TMI 518 - HC
  203. 2004 (8) TMI 673 - HC
  204. 2004 (6) TMI 598 - HC
  205. 2003 (11) TMI 565 - HC
  206. 2003 (8) TMI 478 - HC
  207. 2003 (7) TMI 651 - HC
  208. 2002 (11) TMI 749 - HC
  209. 2002 (10) TMI 761 - HC
  210. 2002 (9) TMI 802 - HC
  211. 2002 (9) TMI 806 - HC
  212. 2002 (9) TMI 816 - HC
  213. 2002 (2) TMI 5 - HC
  214. 2001 (11) TMI 1002 - HC
  215. 2001 (9) TMI 1080 - HC
  216. 2001 (8) TMI 1358 - HC
  217. 2001 (2) TMI 991 - HC
  218. 2001 (2) TMI 985 - HC
  219. 2001 (2) TMI 990 - HC
  220. 2001 (1) TMI 951 - HC
  221. 2000 (4) TMI 800 - HC
  222. 1999 (7) TMI 67 - HC
  223. 1999 (7) TMI 646 - HC
  224. 1998 (9) TMI 646 - HC
  225. 1998 (4) TMI 525 - HC
  226. 1997 (12) TMI 599 - HC
  227. 1997 (9) TMI 571 - HC
  228. 1997 (8) TMI 483 - HC
  229. 1997 (1) TMI 499 - HC
  230. 1996 (12) TMI 365 - HC
  231. 1996 (5) TMI 392 - HC
  232. 1995 (11) TMI 407 - HC
  233. 1995 (7) TMI 388 - HC
  234. 1995 (6) TMI 193 - HC
  235. 1995 (3) TMI 437 - HC
  236. 1995 (3) TMI 445 - HC
  237. 1995 (2) TMI 402 - HC
  238. 1995 (1) TMI 351 - HC
  239. 1994 (12) TMI 294 - HC
  240. 1994 (11) TMI 402 - HC
  241. 1994 (11) TMI 390 - HC
  242. 1994 (6) TMI 198 - HC
  243. 1992 (12) TMI 208 - HC
  244. 1992 (12) TMI 211 - HC
  245. 2024 (5) TMI 478 - AT
  246. 2024 (3) TMI 181 - AT
  247. 2024 (1) TMI 521 - AT
  248. 2024 (1) TMI 137 - AT
  249. 2023 (12) TMI 783 - AT
  250. 2023 (8) TMI 475 - AT
  251. 2023 (7) TMI 58 - AT
  252. 2022 (12) TMI 1142 - AT
  253. 2022 (9) TMI 1004 - AT
  254. 2022 (8) TMI 165 - AT
  255. 2021 (2) TMI 455 - AT
  256. 2021 (2) TMI 116 - AT
  257. 2021 (1) TMI 103 - AT
  258. 2020 (12) TMI 1015 - AT
  259. 2020 (9) TMI 125 - AT
  260. 2019 (11) TMI 1594 - AT
  261. 2019 (9) TMI 1107 - AT
  262. 2017 (9) TMI 1067 - AT
  263. 2017 (9) TMI 89 - AT
  264. 2017 (4) TMI 704 - AT
  265. 2017 (3) TMI 1291 - AT
  266. 2016 (10) TMI 237 - AT
  267. 2016 (10) TMI 457 - AT
  268. 2016 (4) TMI 21 - AT
  269. 2015 (3) TMI 748 - AT
  270. 2014 (11) TMI 167 - AT
  271. 2014 (9) TMI 150 - AT
  272. 2014 (11) TMI 38 - AT
  273. 2013 (9) TMI 294 - AT
  274. 2013 (8) TMI 18 - AT
  275. 2011 (3) TMI 598 - AT
  276. 2011 (3) TMI 826 - AT
  277. 2011 (3) TMI 546 - AT
  278. 2011 (3) TMI 538 - AT
  279. 2011 (1) TMI 650 - AT
  280. 2010 (5) TMI 227 - AT
  281. 2010 (5) TMI 46 - AT
  282. 2010 (2) TMI 1063 - AT
  283. 2007 (3) TMI 66 - AT
  284. 2006 (3) TMI 37 - AT
  285. 1999 (1) TMI 510 - AT
  286. 1998 (12) TMI 589 - AT
  287. 1998 (12) TMI 604 - AT
  288. 2022 (12) TMI 1289 - AAR
  289. 2019 (11) TMI 1145 - AAR
Issues Involved:
1. Legislative power of States to impose tax on transfer of property in goods involved in the execution of works contracts.
2. Applicability of the Central Sales Tax Act to such transfers.
3. Fixation of the situs of such transfers.
4. Measure for levy and fixing the rates for imposition of such tax.
5. Validity of specific provisions of the Rajasthan Sales Tax Act and Rules.

Detailed Analysis:

1. Legislative Power of States:
The Supreme Court addressed the legislative power of States to impose tax on the transfer of property in goods involved in the execution of works contracts. The power to impose this tax became available to State Legislatures through the Constitution (Forty-sixth Amendment) Act, 1982. The Court upheld the validity of this amendment in Builders Association of India v. Union of India, and clarified that the power to tax such transfers is subject to the same restrictions as any other sales tax under entry 54 of the State List. The Court emphasized that the States cannot impose taxes on inter-State sales, sales outside the State, or sales in the course of import/export.

2. Applicability of the Central Sales Tax Act:
The Court held that the provisions of sections 3, 4, and 5 of the Central Sales Tax Act, which determine when a sale takes place in the course of inter-State trade, outside a State, or in the course of import/export, apply to transfers of property in goods involved in the execution of works contracts. The Court also clarified that sections 14 and 15 of the Central Sales Tax Act, which deal with goods of special importance, are applicable to such transfers.

3. Fixation of the Situs of Transfers:
The Court discussed the issue of fixing the situs (location) of the deemed sale in works contracts. It stated that while States can define the situs of a sale, they cannot do so in a way that brings inter-State sales, outside sales, or sales in the course of import/export within their taxing power. The determination of whether a sale is an inter-State sale or an outside sale must be made according to the principles in the Central Sales Tax Act.

4. Measure for Levy and Fixing the Rates:
The Court determined that the measure for the levy of tax on the transfer of property in goods involved in the execution of works contracts should be the value of the goods at the time of their incorporation into the works, not the cost of acquisition by the contractor. The Court allowed for the deduction of expenses related to labor and services from the total contract value to determine the taxable value of the goods. It also upheld the States' ability to prescribe a formula for such deductions when proper accounts are not maintained by the contractor. Furthermore, the Court permitted States to impose a uniform tax rate on all goods involved in works contracts, which may differ from the rates applicable to those goods when sold separately.

5. Validity of Specific Provisions of the Rajasthan Sales Tax Act and Rules:
The Court examined specific provisions of the Rajasthan Sales Tax Act and Rules. It found that section 5(3) of the Act and clause (i) of sub-rule (2) of rule 29 were unconstitutional and void because they allowed for the imposition of tax on transactions beyond the State's legislative competence, including inter-State sales, outside sales, and sales in the course of import/export. The Court set aside the judgment of the Rajasthan High Court and quashed the assessment order dated September 1, 1990, passed by the Commercial Taxes Officer, Kota.

Conclusion:
The Supreme Court's judgment clarified the scope of State legislative power to tax transfers of property in goods involved in the execution of works contracts, ensuring compliance with constitutional limitations and the Central Sales Tax Act. The judgment also provided guidance on the appropriate measure for such taxes and the permissible deductions, while invalidating certain provisions of the Rajasthan Sales Tax Act and Rules that exceeded the State's legislative competence.

 

 

 

 

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