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Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + SC VAT and Sales Tax - 1985 (4) TMI SC This

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1985 (4) TMI 65 - SC - VAT and Sales Tax


  1. 2024 (7) TMI 1390 - SC
  2. 2023 (5) TMI 744 - SC
  3. 2023 (1) TMI 584 - SC
  4. 2022 (5) TMI 968 - SC
  5. 2022 (3) TMI 1093 - SC
  6. 2021 (12) TMI 483 - SC
  7. 2021 (10) TMI 1071 - SC
  8. 2018 (10) TMI 887 - SC
  9. 2018 (7) TMI 1826 - SC
  10. 2018 (3) TMI 357 - SC
  11. 2015 (8) TMI 749 - SC
  12. 2014 (11) TMI 357 - SC
  13. 2014 (9) TMI 576 - SC
  14. 2008 (1) TMI 396 - SC
  15. 2008 (1) TMI 17 - SC
  16. 2007 (2) TMI 73 - SC
  17. 2006 (7) TMI 17 - SC
  18. 2004 (11) TMI 104 - SC
  19. 1999 (12) TMI 760 - SC
  20. 1986 (9) TMI 384 - SC
  21. 2024 (8) TMI 391 - HC
  22. 2024 (7) TMI 297 - HC
  23. 2024 (3) TMI 585 - HC
  24. 2023 (12) TMI 109 - HC
  25. 2023 (11) TMI 206 - HC
  26. 2023 (4) TMI 163 - HC
  27. 2023 (5) TMI 899 - HC
  28. 2023 (3) TMI 1268 - HC
  29. 2023 (1) TMI 635 - HC
  30. 2023 (1) TMI 289 - HC
  31. 2022 (9) TMI 1098 - HC
  32. 2022 (5) TMI 397 - HC
  33. 2022 (4) TMI 1204 - HC
  34. 2022 (1) TMI 540 - HC
  35. 2021 (6) TMI 230 - HC
  36. 2021 (3) TMI 601 - HC
  37. 2020 (10) TMI 778 - HC
  38. 2020 (5) TMI 494 - HC
  39. 2020 (5) TMI 128 - HC
  40. 2020 (11) TMI 798 - HC
  41. 2020 (1) TMI 974 - HC
  42. 2020 (5) TMI 241 - HC
  43. 2019 (10) TMI 1291 - HC
  44. 2019 (9) TMI 1597 - HC
  45. 2019 (11) TMI 1142 - HC
  46. 2019 (9) TMI 700 - HC
  47. 2019 (5) TMI 804 - HC
  48. 2019 (2) TMI 910 - HC
  49. 2019 (2) TMI 300 - HC
  50. 2018 (11) TMI 559 - HC
  51. 2018 (10) TMI 261 - HC
  52. 2018 (10) TMI 452 - HC
  53. 2018 (5) TMI 652 - HC
  54. 2017 (12) TMI 1238 - HC
  55. 2017 (12) TMI 1444 - HC
  56. 2017 (9) TMI 98 - HC
  57. 2017 (5) TMI 79 - HC
  58. 2017 (3) TMI 627 - HC
  59. 2016 (9) TMI 869 - HC
  60. 2016 (8) TMI 502 - HC
  61. 2016 (6) TMI 192 - HC
  62. 2016 (2) TMI 543 - HC
  63. 2016 (1) TMI 6 - HC
  64. 2016 (2) TMI 550 - HC
  65. 2015 (11) TMI 1635 - HC
  66. 2015 (12) TMI 470 - HC
  67. 2015 (5) TMI 804 - HC
  68. 2015 (4) TMI 935 - HC
  69. 2014 (9) TMI 466 - HC
  70. 2015 (2) TMI 1043 - HC
  71. 2013 (11) TMI 1004 - HC
  72. 2013 (8) TMI 532 - HC
  73. 2013 (5) TMI 510 - HC
  74. 2014 (9) TMI 301 - HC
  75. 2013 (6) TMI 586 - HC
  76. 2012 (11) TMI 789 - HC
  77. 2014 (9) TMI 109 - HC
  78. 2011 (11) TMI 356 - HC
  79. 2011 (9) TMI 883 - HC
  80. 2011 (8) TMI 268 - HC
  81. 2011 (6) TMI 687 - HC
  82. 2011 (3) TMI 1505 - HC
  83. 2010 (8) TMI 821 - HC
  84. 2010 (5) TMI 854 - HC
  85. 2010 (5) TMI 780 - HC
  86. 2009 (9) TMI 37 - HC
  87. 2009 (8) TMI 1163 - HC
  88. 2009 (3) TMI 956 - HC
  89. 2007 (10) TMI 579 - HC
  90. 2007 (3) TMI 687 - HC
  91. 2005 (10) TMI 507 - HC
  92. 2005 (3) TMI 766 - HC
  93. 2003 (7) TMI 666 - HC
  94. 2003 (5) TMI 490 - HC
  95. 2001 (11) TMI 101 - HC
  96. 2001 (7) TMI 1300 - HC
  97. 1998 (11) TMI 113 - HC
  98. 1994 (11) TMI 420 - HC
  99. 1992 (12) TMI 208 - HC
  100. 1992 (3) TMI 322 - HC
  101. 1988 (9) TMI 330 - HC
  102. 1987 (8) TMI 411 - HC
  103. 1986 (11) TMI 363 - HC
  104. 2024 (8) TMI 1327 - AT
  105. 2024 (2) TMI 1419 - AT
  106. 2024 (1) TMI 1280 - AT
  107. 2023 (10) TMI 131 - AT
  108. 2023 (10) TMI 195 - AT
  109. 2023 (10) TMI 1175 - AT
  110. 2023 (7) TMI 129 - AT
  111. 2023 (4) TMI 988 - AT
  112. 2023 (2) TMI 783 - AT
  113. 2022 (12) TMI 1142 - AT
  114. 2021 (11) TMI 673 - AT
  115. 2021 (9) TMI 839 - AT
  116. 2021 (2) TMI 472 - AT
  117. 2020 (11) TMI 493 - AT
  118. 2019 (12) TMI 14 - AT
  119. 2019 (9) TMI 1532 - AT
  120. 2019 (7) TMI 723 - AT
  121. 2019 (7) TMI 503 - AT
  122. 2019 (6) TMI 426 - AT
  123. 2015 (12) TMI 1105 - AT
  124. 2015 (7) TMI 1399 - AT
  125. 2015 (3) TMI 748 - AT
  126. 2015 (3) TMI 803 - AT
  127. 2015 (3) TMI 265 - AT
  128. 2014 (10) TMI 938 - AT
  129. 2014 (1) TMI 1777 - AT
  130. 2014 (1) TMI 1642 - AT
  131. 2013 (11) TMI 1243 - AT
  132. 2013 (9) TMI 294 - AT
  133. 2013 (8) TMI 18 - AT
  134. 2012 (4) TMI 290 - AT
  135. 2012 (3) TMI 402 - AT
  136. 2012 (3) TMI 687 - AT
  137. 2012 (12) TMI 7 - AT
  138. 2011 (11) TMI 709 - AT
  139. 2010 (3) TMI 939 - AT
  140. 2009 (1) TMI 443 - AT
  141. 2008 (8) TMI 90 - AT
  142. 2007 (11) TMI 93 - AT
  143. 2007 (2) TMI 658 - AT
  144. 2007 (1) TMI 217 - AT
  145. 2006 (4) TMI 202 - AT
  146. 2006 (3) TMI 187 - AT
  147. 2004 (12) TMI 318 - AT
  148. 2003 (7) TMI 647 - AT
  149. 1994 (9) TMI 129 - AT
  150. 1993 (10) TMI 106 - AT
  151. 2023 (4) TMI 44 - AAAR
  152. 2018 (10) TMI 1054 - AAR
  153. 2018 (9) TMI 1257 - AAR
  154. 2022 (6) TMI 1252 - NAPA
  155. 2020 (2) TMI 957 - NAPA
Issues Involved:
1. Liability of sales tax on cotton yarn under the Bengal Finance (Sales Tax) Act, 1941.
2. Interpretation of Sections 14 and 15 of the Central Sales Tax Act, 1956.
3. Validity of multi-point vs. single-point taxation under the State Act.
4. Authority of the Chief Commissioner under Section 5A of the State Act.

Detailed Analysis:

1. Liability of Sales Tax on Cotton Yarn:
The appellant, a dealer in the resale of cotton yarn, challenged the sales tax assessment imposed on him for the assessment year 1968-69. Initially, the Sales Tax Officer taxed the sales at one percent, considering the transactions to be in respect of cotton yarn. The Assistant Commissioner of Sales Tax reversed this decision, treating the transactions as sales of cotton thread, which was exempt. However, the Deputy Commissioner of Sales Tax, exercising revisional jurisdiction, reinstated the original assessment, holding that the sales were indeed of cotton yarn.

2. Interpretation of Sections 14 and 15 of the Central Sales Tax Act, 1956:
Section 14 of the Central Sales Tax Act, 1956, declares cotton yarn as a commodity of special importance in inter-State trade or commerce. Section 15 restricts the imposition of sales tax on such declared goods to a maximum of three percent and mandates that the tax should not be levied at more than one stage. The Financial Commissioner, Delhi Administration, quashed the assessment on the ground that the sales tax law did not specify the single point at which the tax could be imposed, thus failing to comply with Section 15.

3. Validity of Multi-Point vs. Single-Point Taxation:
The High Court of Delhi upheld the multi-point taxation under the State Act, interpreting sub-clause (ii) of clause (a) of sub-section (2) of Section 5 as implying that the single point of taxation was the resale by the last registered dealer to an unregistered dealer or consumer. However, the Supreme Court, referencing its decision in Polestar Electronic (P.) Ltd. v. Additional Commissioner, Sales Tax, clarified that the expression "resale" was not confined to within the Union Territory of Delhi, and the legislative intent was not to ensure taxation at least at one point within Delhi.

4. Authority of the Chief Commissioner under Section 5A of the State Act:
Section 5A of the State Act empowers the Chief Commissioner to specify the single point in a series of sales at which tax may be levied. The Supreme Court noted that this provision granted the Chief Commissioner the authority to determine the single point of taxation through a notification in the Official Gazette. Since no such notification was presented for the assessment year in question, the court concluded that the requirement of Section 15 of the Central Sales Tax Act was not met, rendering the assessment invalid.

Conclusion:
The Supreme Court held that the assessment of the turnover of cotton yarn for the assessment year 1968-69 under the Bengal Finance (Sales Tax) Act, 1941, as applied to the Union Territory of Delhi, could not be sustained. The judgment and order of the High Court of Delhi were set aside, and the assessment was quashed. The appellant was entitled to costs. The appeal was allowed.

 

 

 

 

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