Basic concept of Taxable event (Levy), Quantification of tax, Collection of tax etc. - OLD - GST Law and Procedure [January, 2019] - GST

Various Aspect of Taxability - Taxable event (Levy), Quantification of tax, Collection of tax etc. A taxable event is that which on its occurrence creates the liability to tax, which liability does not exist at a later point of time. Even though the taxable event of a tax happens to be at a particular point of time, the levy and collection of such tax may be postponed, for administrative convenience, to a later date. - Goodyear India Ltd. v. State of Haryana [1989 (10) TMI 52 - SUPREME Court] [two member bench] In the Goodyear India Ltd. (supra), Apex Court has said that, It is well-settled that the main test for determining the taxable event is that on the happening of which the charge is affixed. The realization often is postponed to a further date. The quantification of the levy and the recovery of tax are also postponed in some cases. It is well-settled that there are three stages in the imposition of a tax. There is the declaration of liability, that is the part of the statute which determines what persons in respect of what property are liable. Next, there is the assessment liability does not depend on assessment, that, ex hypothesis has already been fixed. But assessment particularises the exact sum which a person is liable to pay. Lastly comes the method of recovery if the person taxed does not voluntarily pay. Though the decision of Supreme Court in the case of Goodyear India Ltd. v. State of Haryana [1989 (10) TMI 52 - SUPREME Court] was dissented by the 3 member bench in the case of, Hotel Balaji Versus State of Andhra Pradesh [1992 (10) TMI 240 - SUPREME COURT OF INDIA], the basic principle as stated above was not touched upon. Further, 3 member bench of apex court in the case of State of Kerala v. Alex George [2004 (11) TMI 104 - SUPREME Court] decided the issue following the principle of taxable event as decided in the case of Goodyear India Ltd. v. State of Haryana [1989 (10) TMI 52 - SUPREME Court] [two member bench] Also see an important Decision by 5 member bench of the Supreme Court in the case of Godfrey Phillips India Ltd. and another Versus State of UP. and others (and other writ petitions and appeals) [2005 (1) TMI 391 - SUPREME COURT OF INDIA]