Central Sales Tax Act, 1956

The Commissioner of Sales Tax, Uttar Pradesh, appealed against a judgment of the Allahabad High Court which had allowed M/s Hind Lamps Ltd. to adjust alleged refundable tax amounts against tax payable for April, May and August 1977. The dealer claimed refunds for assessment years 1968-69 to 1971-72 and unilaterally adj…

The Builders Association of India and other contractors challenged the levy of sales tax by several State governments on the turnover of works contracts after the Constitution (Forty‑sixth Amendment) Act, 1982 introduced clause 29A to Article 366, deeming the transfer of property in goods used in works contracts a "sal…

Cement Marketing Co. of India Ltd. sold cement under the Cement Control Order, charging freight as part of a "free on rail destination" price that was paid by purchasers and deducted from invoices. The company omitted the freight amount from its sales‑tax returns, believing it was not part of the sale price. The Assist…

The appellant, a manufacturing dealer, purchased raw materials both within Maharashtra and from other states and claimed set‑off of purchase tax against sales tax under Bombay Sales Tax Rules 41 and 41A. The rules require that the set‑off be reduced by one per cent of the sale price of goods dispatched to the dealer’s …

Tata Iron and Steel Co. Ltd., a dealer under the Bihar Finance Act, operated a Hot Rolled Mill (HRM) and later set up a Cold Rolled Mill (CRM) as a diversification. The CRM received tax exemption under Bihar's 1995 Industrial Policy notifications 478/479, which was later withdrawn but restored by the Supreme Court. Aft…

Andhra Steel Corporation, a dealer under the Karnataka Sales Tax Act, purchased iron scrap both within and outside Karnataka to manufacture steel products. The Act's Section 5(4) together with Schedule IV, Item 2 and Explanation II (applicable before 1‑April‑1978) exempted sales of steel semis made from scrap on which …

C.T. Ltd. and another, engaged in the tea trade, entered into a contract with the State Trading Corporation (STC) to supply unblended Assam tea to an Iranian buyer. To fulfil this contract they purchased tea from auction brokers. The sales tax authorities demanded payment of sales tax on these purchases. The appellants…

Associated Cement Companies Ltd., a cement manufacturer, was granted sales‑tax exemption on incremental production under Bihar's 1995 Industrial Policy (effective 1‑Apr‑1998 to 31‑Mar‑2007). The company had been adjusting entry tax paid under the Bihar Entry of Goods into Local Areas Act, 1993, against its sales‑tax li…

The Central Government set up a Medical Store Depot in Gauhati to procure and supply medical stores to various government institutions on a "no profit‑no loss" basis. The depot did not apply for registration as a dealer under the Assam Finance (Sales Tax) Act, 1956 or the Central Sales Tax Act, 1956, claiming that its …

The appellant, a partner in a firm assessed under the Bombay Sales Tax Act, 1959, claimed that a settlement with the State Minister for Finance had discharged his individual liability for the firm’s tax dues, and that the Commissioner had acted on this settlement. The Revenue contested the existence and effect of such …

Mis. Casio India Co. Pvt. Ltd., a manufacturer of radio pagers in Haryana, claimed exemption from Central Sales Tax (CST) on inter‑state sales of goods it purchased from another dealer holding a valid exemption certificate under Rule 28A. The State of Haryana rejected the claim, contending that the exemption applied on…

The Commissioner of Commercial Taxes of Kerala challenged a penalty of Rs.86 lakh imposed on K.T.C. Automobiles for allegedly evading Kerala sales tax by registering 263 cars sold from its Mahe branch under the Pondicherry Sales Tax Act. The High Court set aside the penalty, holding that the sale was completed at Mahe …

The Kerala General Sales Tax Act, 1963 introduced optional alternate taxation provisions (Section 7(7), 7A, 7B, 11, 12) allowing contractors to pay a fixed percentage of the contract value instead of tax under Section 5(1)(iv). Several contractors who had not opted for this scheme challenged the validity of those sub‑s…

ICI India Ltd purchased ammonium nitrate liquor for making "Bulk Premix" at its Rourkela plant and declared in Form IV to obtain a concessional tax rate of 4% under the Orissa Sales Tax Act, 1947. The bulk premix, an intermediate product, was not sold but transferred to the company's other units in Orissa and outside t…

The Rajasthan government introduced a Sales Tax Exemption Scheme for industries under its Fourth Industrial Policy, classifying cement units under different categories. Two sick cement manufacturers applied for exemption claiming parity with new units, but while their applications were pending the government issued a c…

M/s Malnad Areca Processing & Marketing Ltd, a newly established industrial unit engaged in processing arecanut purchased from member‑growers and exporting the product, claimed exemption from purchase tax under Section 6 of the Karnataka Sales Tax Act, 1957, relying on a Government Order and a notification that provide…

J.K. Synthtics Ltd., a manufacturer of tyre‑cord fabric, claimed exemption from sales tax under a 1957 notification issued under Section 8(5) of the Central Sales Tax Act, 1956. The State of Rajasthan later issued notifications in 1980 and 1981, the latter stating that "all the notifications" issued under Section 8(5) …

The appellants, dealers in hides and skins, purchased raw hides and skins, paid sales tax on them, and later tanned them into dressed hides and skins which were sold inter‑state. They contended that under Section 14(iii) of the Central Sales Tax Act, raw and dressed hides constitute a single commodity, and that Section…

The appellants imported and sold brown (watery) coconuts in Ahmedabad and challenged the municipal octroi levied on them, arguing that such coconuts are "green fruits" exempt under Item 10 of Rule 4 of the Ahmedabad Municipal Corporation Octroi Rules. The Supreme Court examined the ordinary commercial meaning of "green…

The State of Kerala appealed against the Agro Industrial Trading Corporation, which claimed exemption from sales tax on PVC cloth under item 7 of the Kerala General Sales Tax Act, 1963. The issue was whether the definition of "cotton fabrics" referred to in the Act, taken from the Central Excises and Salt Act, 1944, sh…

The Commercial Taxes Officer challenged the exemption claimed by M/s Bombay Machinery Store under Section 6(2) of the Central Sales Tax Act, 1956, arguing that the State’s circulars imposed a 30‑day time‑limit after which goods retained by a carrier were deemed to be constructively delivered, converting the inter‑state…

The respondents, K.B. Saha & Sons, purchased processed kendu leaves from the Orissa Forest Development Corporation under a tender, obtained lifting orders and transport permits, and moved the leaves to their factories in West Bengal. The State of Orissa levied sales tax under the Orissa Sales Tax Act, 1947, which the r…

Bengal Iron Corporation, a manufacturer of cast‑iron pipes, man‑hole covers and similar items, claimed that its products fell under Item 2(i) of the Third Schedule of the Andhra Pradesh General Sales Tax Act, 1957, and were therefore liable to a single point tax of 4% only. The Commercial Tax Officer levied tax at the …

The Supreme Court considered a contempt petition filed by JSW Steel Ltd., which had become the successful resolution applicant for the insolvent Monnet Ispat and Energy Ltd. After the National Company Law Tribunal approved the resolution plan, the State of Chhattisgarh issued demand notices for sales tax, VAT and entry…

The State of Jharkhand issued Notification S.O. No.25 on 25 June 2001 reducing the Central Sales Tax rate to 3% for the "sale of all types of glass and glass sheets" in interstate trade. M/s Laopalarg Ltd., a manufacturer of glassware, claimed that its products fell within the "types of glass" and therefore were eligib…

Ravi Gupta, a dealer registered under the Delhi Sales Tax Act, 1975 and the Central Sales Tax Act, 1956, faced a tax demand of about Rs.8.3 crore for failing to furnish mandatory declaration forms. He appealed before the Appellate Tribunal (VAT Delhi) and sought relief under Section 43(5) of the Delhi Sales Tax Act to …

M/s DCM Ltd sold chemicals to three purchasing dealers in Delhi under contracts that assigned each dealer an exclusive territory outside Delhi and obliged them to move the goods to those territories for sale. The Assessing Authority treated the transactions as local sales, but the Sales Tax Tribunal and the Delhi High …

Leukoplast (India) Ltd. manufactured plasters, dressings and bandages under a licence from the Drug Controller and paid Central and Goa local sales tax at the rates applicable before certain notifications exempted "drugs and medicines". The company claimed a refund, asserting its products fell within the exemption, but…

The petitioners, manufacturers in Haryana, challenged the constitutional validity of the Haryana Local Area Development Tax Act, 2000, alleging it violated Article 301 of the Constitution and was not saved by Article 304(b). They argued that the Act imposed an entry tax on goods moving into local areas, effectively a s…

Larsen & Toubro Ltd. (L&T) executed works contracts in Andhra Pradesh and subcontracted portions to registered VAT dealers. The State of Andhra Pradesh assessed tax on L&T by adding the turnover of the subcontractors, treating the arrangement as two deemed sales – one from the subcontractor to L&T and another from L&T …

M/s Bansal Wire Industries Ltd., a manufacturer of stainless steel wire, challenged the assessment that taxed its product at 4% under the Central Sales Tax Act, arguing that stainless steel wire is a "declared commodity" within the "iron and steel" category of Section 14(iv) and thus eligible for the 4% ceiling. The St…

Modern Proteins Ltd., a dealer under the Andhra Pradesh General Sales Tax Act, dealt in groundnut products including deoiled cake and groundnut protein flour. For the 1977-78 assessment year, the Central Tax Officer taxed the flour at 4% under the Central Sales Tax Act, but the Assistant Commissioner re‑classified it a…

The appellant, a dealer in cotton yarn registered under the Bengal Finance (Sales Tax) Act, 1941 as applied to Delhi, claimed exemption for sales of cotton thread under Entry 21 of the Second Schedule. The Sales Tax Officer held the sales were of cotton yarn and liable to tax. The Financial Commissioner quashed the ass…

Hindustan Paper Corporation Ltd. entered into an agreement with the Kerala Government in 1974 that exempted its newsprint turnover from Kerala's sales tax for two years from the start of production. The company sold most of the newsprint in inter‑state trade and claimed a corresponding exemption from Central Sales Tax …

The respondents, manufacturers of notified chemicals, were granted Recognition Certificates under Section 4‑B of the Uttar Pradesh Trade Tax Act, 1948, allowing them to purchase high‑speed diesel oil (HSD) at a concessional tax rate. In 2000 the State issued a circular and show‑cause notices directing the deletion of H…

The Commissioner of Trade Tax, U.P. sought revision of a seizure order on agro‑chemical drums, alleging that the goods loaded in a truck differed from those declared in the transit pass. The departmental authorities and the Trade Tax Tribunal found that the goods were indeed different and upheld the seizure. The Allaha…

Chowgule & Co. Pvt. Ltd., a mining company, sought inclusion of 36 items of goods in its Certificate of Registration under Section 8(3)(b) of the Central Sales Tax Act, claiming they were used in mining and processing of ore for export. The Sales Tax Officer allowed only 11 items, and subsequent revisions and the Judic…

The appellants, registered dealers in Haryana, bought raw materials without paying purchase tax under section 24 of the Haryana Sales Tax Act, used them to manufacture goods and sold the finished products to dealers who exported them. They claimed exemption from the purchase tax under section 9(1) on the ground that th…

The Minerals and Metals Trading Corporation of India Ltd., acting as a canalising agent, placed a purchase order with a foreign exporter for tin mill black plate coils on behalf of the Steel Authority of India Ltd. (SAIL). The coils were shipped on the high seas and the bill of lading was endorsed in favour of SAIL bef…

The Steel Authority of India entered into a works contract for an oxygen furnace plant, paying a contractor for design, engineering, supply and installation. Under the amended Section 13‑AA of the Orissa Sales Tax Act, the owner was required to deduct 4% sales tax on all payments, but it omitted deduction on amounts re…

M/s. Kanpur Edibles Pvt. Ltd. challenged the Commissioner of Trade Tax, U.P.'s orders under Section 10‑B of the U.P. Sales Tax Act, 1948, which were issued in 2006 to revise a 2003 order cancelling re‑assessment notices. The Tribunal held that the 10‑B notices were beyond the limitation period, but the High Court rever…

Satnam Overseas, a miller‑exporter, bought paddy in Haryana and Punjab, milled it into rice and exported the rice. The assessing authorities initially granted exemption under Section 9(1)(b) of the Haryana General Sales Tax Act, 1973, but later revised the assessments on the ground of retrospective amendments to Sectio…

MIS Dewan Enterprises, a manufacturer of cycle rims, was assessed by the Uttar Pradesh Sales Tax Officer at an 8% rate, treating the rims as cycle parts. The company argued that under Section 14(iv)(xiv) of the Central Sales Tax Act, cycle rims are "declared goods" and, per Section 15, should be taxed at a maximum of 4…

The State of Tripura issued a 1992 memorandum requiring ONGC, GAIL and FCI to deduct 4% sales tax at source when paying vehicle suppliers who had hired the vehicles. The suppliers challenged the validity of sub‑rule (2) of Rule 3A of the Tripura Sales Tax Rules, claiming it was ultra vires the Tripura Sales Tax Act and…

Leather Facts Co., a dealer in hides and skins that exported its goods, filed purchases using Form III‑A under the Uttar Pradesh Sales Tax Act because no specific form existed for export transactions. The Commissioner held that purchases made against Form III‑A were liable to purchase tax, whereas those against Form H …

The appellant, a registered dealer, purchased poppy seeds on a Form ST‑17 declaration stating they were for "resale within the State" and subsequently resold them in Bhawani Mandi. The Commercial Tax Officer held that because the resales were sales in the course of inter‑State trade, they could not be treated as "resal…

The assessee, a registered textile manufacturer, purchased dyeing colours and chemicals under a Certificate of Registration and declared them for use in the manufacture of goods for sale, thereby enjoying a reduced 3% sales tax rate. The tax officer issued notices alleging misuse of the certificate because the assessee…

Mahim Patram Private Ltd., a contractor printing examination papers for entities outside Uttar Pradesh, was assessed sales tax on its works contracts for AY 2002‑03 and 2003‑04. The Central Sales Tax Act, 1956 had been amended to bring works contracts within the definition of "sale" but no Central rule prescribed the m…

M/S Mamta Surgical Cotton Industries, a dealer under the Rajasthan Sales Tax Act, purchased raw cotton and processed it into surgical cotton. The assessing authority taxed the surgical cotton at 4% for AY 1992-93, treating it as a separate commodity, and the Rajasthan Tax Board upheld this view for AY 1993-94 to 1998-9…

The Supreme Court examined several writ petitions challenging state notifications that granted sales‑tax exemptions to new manufacturing units in Uttar Pradesh, Punjab and other states. The petitioners, dealers of imported cinematographic and electronic goods, claimed the exemptions discriminated against them in violat…

The Supreme Court examined the constitutional validity of purchase‑tax provisions in three State sales‑tax statutes: Section 15B of the Gujarat Sales Tax Act, Section 3‑AAAA of the Uttar Pradesh Sales Tax Act, and Section 6‑A of the Andhra Pradesh General Sales Tax Act. The petitioners argued that these provisions amou…

The appellants, commission agents dealing in timber harvested by farmers, challenged assessments that treated them as "manufacturers" under the Uttar Pradesh Trade Tax Act, 1948 after an amendment to Section 2(ee). The State relied on a circular issued by the Commissioner of Trade Tax, which interpreted purchases from …

South India Viscose Ltd., a Tamil Nadu manufacturer of art silk yarn, supplied yarn to weavers in Maharashtra and Gujarat under an Export Promotion Scheme. The yarn was dispatched from its factory to Bombay through a selling agent and then delivered to the purchasers. The company contended that the sale occurred in Bom…

The Supreme Court examined whether the sale of electricity by National Thermal Power Corporation Ltd. (NTPCL) to electricity boards in other states constituted an inter‑State sale and could be taxed by the states under their Electricity Duty Acts. It held that electricity is a "good" and that its generation, transmissi…

The State of Rajasthan, under the Rajasthan Sales Tax Act, 1954, issued an incentive scheme in 1987 exempting new industrial units, including oil extraction and manufacturing, from sales tax. In 1990 the State withdrew this exemption for oil industries by a notification issued under both the Rajasthan Sales Tax Act and…

The assessee challenged a trade tax demand under the Uttar Pradesh Trade Tax Act, 1948, and obtained relief from the Tribunal. The revenue department filed revision petitions under section 11 of the Act, which the Allahabad High Court allowed, setting aside the Tribunal's orders. The assessee appealed to the Supreme Co…

Tata Motors sold buses through its RSO in Vijayawada to the Andhra Pradesh State Road Transport Corporation, a transaction that was held to be an inter‑state sale liable to central sales tax (CST) in the State of Jharkhand. Tata Motors, treating the sale as a stock transfer, paid the CST to the State of Andhra Pradesh,…

The appeal concerned the taxability of pan masala containing tobacco (gutka) under the Delhi Sales Tax Act, 1975, the U.P. Trade Tax Act, 1948 and the Tamil Nadu General Sales Tax Act, 1959. The central issue was whether the specific entry introducing "Pan Masala and Gutka" in the rate schedule overrode the general exe…

Sterling Foods, a partnership dealing in shrimp, prawns and lobsters, purchased raw seafood for export, processed it by cutting, peeling, deveining, cleaning and freezing, and claimed exemption from purchase tax under the Karnataka Sales Tax Act, 1957 relying on sub‑section 5(3) of the Central Sales Tax Act, 1956. The …

The State of Tamil Nadu introduced an interest‑free sales‑tax deferral scheme for expansion or diversification units under GO No. 119 dated 13 April 1994, requiring manufacturers to meet a Base Production Volume (BPV) and a Base Sales Volume (BSV) before enjoying deferral. India Cements Ltd. claimed the benefit after r…

Larsen & Toubro Ltd. filed returns under the Bihar Finance Act, 1981 for AY 1991‑92 and received an assessment order in 1996. An audit by the Auditor General identified an exemption of Rs 3.12 crore for consumables that, in the auditor’s view, should have been taxed, leading to a show‑cause notice in 2000 and a re‑asse…

Federal Bank Ltd. and other banks challenged notices issued by the Kerala tax department demanding sales tax on the auction sale of gold and other valuables pledged as security for loans. The banks argued that such sales were not "sales" within the meaning of the Kerala General Sales Tax Act, 1963 and that they did not…

The appellants, Gujarat cement manufacturers, challenged three Rajasthan notifications that reduced the Central Sales Tax on inter‑state cement sales to 7% and later 4% and dispensed with the mandatory Form C declaration. They argued that the notifications were not issued in public interest, violated Articles 301, 302,…

The appellants, processors of cashew nuts in Kerala and Karnataka, purchased raw cashew nuts imported by the Cashew Corporation of India (CCI), a canalising agency, and argued that these purchases were "in the course of import" and thus exempt from state sales tax under Section 5(2) of the Central Sales Tax Act, 1956. …

The State of Haryana withdrew the sales‑tax exemption for solvent‑extraction plants by placing the industry in a negative list on 16‑12‑1996, after Mahabir Vegetable Oils Pvt. Ltd. had invested in setting up such a plant based on an earlier promise of exemption. The respondent claimed entitlement to the exemption on th…

The appellants imported cigarettes, stored them in a bonded warehouse in West Bengal and sold them to the master of a foreign‑going ship as ship stores without paying customs duty. They claimed the sales were "in the course of import" and therefore exempt from West Bengal sales tax under the 1954 and 1994 Acts. The Cou…

M/s. Phool Chand Gupta, a dealer in oilseeds, claimed exemption under Section 6(2) of the Central Sales Tax Act for the sale of Mohwa seeds purchased in transit and sold to dealers outside Andhra Pradesh. The Deputy Commissioner withdrew the exemption because the dealer had not furnished Form C, a requirement under Rul…

The Supreme Court examined whether mobile service providers (MSPs) could claim CENVAT credit on excise duties paid for mobile towers and prefabricated buildings (PFBs) used in their networks. The dispute arose from conflicting decisions of the Bombay High Court, which held the towers and PFBs to be immovable property a…

The State of Uttar Pradesh rescinded a 1998 notification that granted a tax rebate to cement manufacturers using fly ash, by issuing a 2004 notification. Birla Corporation Ltd. and Jai Prakash Associates Ltd., which had set up units and begun production before the 2004 rescission, claimed that the rebate entitlement fo…

Prasar Bharati issued a tender for two 1 MW transmitters. BECIL and Arraycom submitted technically qualified bids. Arraycom’s financial bid of Rs 51.57 crore stated that Central Sales Tax (CST) was inclusive but also required concessional forms C/D, creating ambiguity. BECIL’s lower bid of Rs 47.35 crore quoted sales t…

The respondent, a registered dealer under the Karnataka Sales Tax Act, purchased fish oil from unregistered dealers and sold it within Karnataka to another dealer, Kalbhavi, who intended to export the oil. The issue was whether the purchase of the fish oil attracted purchase tax under Section 6 of the Karnataka Sales T…

Ramco Cement Distribution Co. Pvt. Ltd. and other cement dealers were assessed for sales tax on a turnover that included freight, packing charges, and excise duty on packing material for the year 1969-70. The dealers argued that these amounts should be excluded from taxable turnover for both the Central Sales Tax Act, …

The State of Maharashtra challenged a Bombay High Court order that had set aside a tax assessment and demand notice issued to Greatship (India) Ltd. under the Maharashtra Value Added Tax Act, 2002 and the Central Sales Tax Act, 1956. The assessee had filed a writ petition under Article 226 of the Constitution without f…

Indure Ltd. was awarded a turnkey contract by NTPC to erect an ash‑handling plant. To fulfil the contract it imported MS pipes and other components, which were sold to NTPC. The company claimed exemption from sales tax under Section 5(2) of the Central Sales Tax Act, 1956, arguing that the sale was in the course of imp…

Ashok Leyland Ltd., a manufacturer of trucks, sold vehicles to state transport undertakings and other buyers through its regional sales offices (RSOs) across India. The company filed Form ‘F’ with the Tamil Nadu sales‑tax authority, claiming the movement of goods to RSOs was a transfer, not a sale, and paid sales tax i…

The Supreme Court examined the constitutional validity of luxury‑tax statutes enacted by Uttar Pradesh (1995), Andhra Pradesh (1987) and West Bengal (1994) which imposed tax on the supply of tobacco and other goods described as "luxuries". The central issue was whether Entry 62 of List II of the Seventh Schedule permit…

The Supreme Court examined whether the Haryana General Sales Tax Act, 1973 (as amended) and the Bombay Sales Tax Act, 1959 (section 13‑AA) could levy a tax on the despatch of manufactured goods to a dealer’s own branches outside the State. It held that the taxable event under both statutes is the consignment/despatch o…

The appellant, Trimurthi Fragrances, challenged the levy of sales tax by Delhi, Uttar Pradesh and Tamil Nadu on pan masala containing tobacco and gutka, arguing that the product is covered by an entry in the First Schedule of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (ADE Act) and therefor…

The State of Madhya Pradesh issued a 1981 notification exempting certain classes of dealers from sales tax, but the Director of Industries denied certificates to flour and dal mill units on the ground that they were "traditional industries" excluded by earlier subsidy schemes. The assessees argued that the notification…

The petitioners, manufacturers of washed cottonseed oil, challenged the constitutional validity of Sections 41 and 41A of the Bombay Sales Tax Act, alleging that the State of Maharashtra’s power to grant tax exemptions to new units in backward areas and to withdraw those exemptions for edible‑oil units only was arbitra…

Imperial Chit Funds Ltd., a company in liquidation, was served with a tax demand of Rs.1,027 by the Income Tax Officer after winding‑up proceedings had begun. The Official Liquidator argued that the tax claim could not be enforced until the claim was proved in the winding‑up process, invoking the Companies Act’s scheme…

National Aluminium Co. Ltd., a government company with its corporate office in Odisha and a mercantile office in Visakhapatnam, exported aluminium via Visakhapatnam port and earned Duty Entitlement Pass Book (DEPB) credits. It auctioned these credits to bidders from other states, treating the transfers as inter‑state s…

The Additional Commissioner of Commercial Taxes allowed exemption on sales of polished granite stones, but later reopened the assessment and disallowed the exemption, contending that polished and unpolished granite fall under separate entries of the Karnataka Sales Tax Act. The assessee argued that polished granite sto…

The Supreme Court upheld the Himachal Pradesh High Court’s decision allowing a writ petition under Article 226 despite the existence of statutory remedies. Gujarat Ambuja Cement Ltd. was held to be a "prestigious cement industrial unit" entitled to sales‑tax exemption from the date it commenced commercial production (2…

The State of Orissa appealed against Minerals and Metals Trading Corporation of India Ltd. (MMTC), a government dealer that purchased mineral ore in Orissa, declared the ore for resale within the state, and then sold it to a Japanese buyer by delivering it at Paradeep port for export. The Sales Tax Officer held MMTC li…

The Uttar Pradesh legislature amended its 1939 Motor Spirit, Diesel Oil and Alcohol Taxation Act to levy a purchase tax on industrial alcohol, which was challenged as unconstitutional because industrial alcohol is regulated by the Central Government under the Industries (Development and Regulation) Act, 1951. The respo…

Bharat Heavy Electricals Ltd (BHEL), a public sector undertaking, manufactured boiler components in its Hyderabad unit and dispatched some to its Tiruchi unit and others directly to the work‑site at Angul, Orissa, for a NALCO power‑plant project. The Andhra Pradesh State began levying Central Sales Tax (CST) on these c…

The appellant, a dealer in cotton yarn, sold the yarn to registered dealers and obtained Form III‑A certificates indicating the goods were for resale. The Sales Tax Officer later alleged that the purchasers had consumed the yarn, reopened the assessment under s.21 of the Uttar Pradesh Sales Tax Act and levied tax on Rs…

Associated Tanners, a tannery in Vizianagram, purchased raw hides, tanned them and sold the tanned hides in inter‑State trade. The Andhra Pradesh General Sales Tax Act, 1957 (item 9(b) of Schedule III) levied tax on the sale of tanned hides when purchased by a manufacturer, and the Central Sales Tax Act, 1956 also impo…

The case concerned the interpretation of the Orissa Additional Sales Tax Act, 1975 as amended in 1979 and whether its additional tax was subject to the single‑point levy rule of section 8 of the Orissa Sales Tax Act, 1947. The appellants argued that, because section 3(2) of the 1975 Act made the provisions of the 1947 …

M/S Southern Motors, a registered dealer under the Karnataka Value Added Tax Act, 2003, issued tax invoices for vehicle sales and later granted post‑sale discounts through credit notes, retaining only the net amount. The Assessing Authority disallowed deduction of these discounts from total turnover, insisting that a d…

Madhya Bharat Papers Ltd., a new paper manufacturing unit in Madhya Pradesh, claimed exemption from sales tax on inter‑state sales under a State Government notification issued under Section 8(5) of the Central Sales Tax Act, 1956. The notification required that a dealer be "registered under the Central Sales Tax Act". …

The petitioners, cement manufacturers in Gujarat, challenged a Rajasthan notification under Section 8(5) of the Central Sales Tax Act that reduced the inter‑state sales tax on cement to 4% and dispensed with the Form‑C/Form‑D requirement. They argued that the reduction created a local preference, hindered free trade un…

The Supreme Court examined appeals by Gannon Dunkerley Co. and other contractors challenging the Rajasthan Sales Tax Act, 1954 and its rules which imposed tax on the transfer of property in goods used in works contracts. The Court held that Section 5(3) of the Act and sub‑rule (i) of Rule 29 of the Rajasthan Sales Tax …

The Builders' Association of India, an association of contractors, challenged the Karnataka Sales Tax Act, 1957, specifically Explanation 3(c) to Section 2(t) and Section 5‑B with the Sixth Schedule, alleging that they converted inter‑state sales into intra‑state sales and imposed tax on the value of works contracts in…

The Supreme Court examined whether Ultratech Cement Ltd. was entitled to a 75% capital investment subsidy under the Rajasthan Investment Promotion Scheme, 2003 (RIPS-2003) for its Kotputli cement plant. The Court held that the scheme’s sub‑clauses (vi) and (vii) granting 75% subsidy were deleted before the company’s ap…

India Agencies (Regd.) Bangalore claimed a concessional 4% tax rate on inter‑state sales under Section 8 of the Central Sales Tax Act. The original portions of Form‑C were lost, and the dealer submitted duplicate copies and indemnity bonds. The assessing authority disallowed the benefit, the Joint Commissioner allowed …

The Supreme Court examined whether Hindustan Aeronautics Ltd.'s (HAL) manufacture of MIG engines for the Government of India constituted a contract of sale liable to Central Sales Tax or a works contract exempt from tax. The Government of India, under a licence from the USSR, entrusted HAL to assemble and fit the engin…

M/s IDL Chemicals Ltd., a manufacturer of explosives, supplied goods to Coal India Ltd.'s collieries in several states through its consignment agents. The company claimed that dispatches from its Rourkela factory to the agents were merely stock transfers and not inter‑State sales under the Central Sales Tax Act, 1956, …

J.K. Lakshmi Cement Ltd. appealed against the Commercial Tax Officer, Pali, contending that it could claim a dual benefit – the partial exemption under Notification dated 06.05.1986 and the reduced 6% tax rate under Notification dated 21.01.2000 – relying on a 1994 circular that had been withdrawn in 2001. The Court ex…

Madras Marine & Co., a ship‑chandler, imported goods, stored them in a customs‑bonded warehouse in Tamil Nadu and supplied them on board foreign‑going vessels. The State of Madras assessed sales tax under the Tamil Nadu General Sales Tax Act, 1959, contending the sales occurred within the state. The company argued the …

The State of Rajasthan challenged the validity of sub‑rule (20) of Rule 17 of the Central Sales Tax (Rajasthan) Rules, 1957, which allowed the cancellation of Form C declarations issued by dealers on grounds of fraud or misrepresentation. The High Court held that the State lacked authority to make such a rule because i…

Comorin Match Industries (Pvt.) Ltd. challenged Central Sales Tax assessments for the years 1957-58 to 1965-66 on the ground that the tax was levied on turnover that included excise duty, which the Madras High Court had held to be illegal. The High Court quashed the assessments, but the State of Tamil Nadu did not appe…

The Kerala Additional Sales Tax Act, 1978 imposed an extra levy of 10% of the existing tax rate on all taxable sales and purchases in the State. Several dealers, including AysHA Hosiery Factory, challenged the inclusion of this additional tax in the calculation of Central Sales Tax (CST) on their inter‑state sales, arg…

The Supreme Court examined whether Government Orders 159 (26‑Mar‑1971) and 414 (25‑Aug‑1971) issued by the Jammu & Kashmir government constituted valid tax exemption orders under Section 5 of the Jammu & Kashmir General Sales Tax Act, 1962, and whether the exemption applied for five years or ten years as claimed by the…

Vijayalaxmi Cashew Company purchased raw cashew nuts, processed them to extract oil and kernels, and exported the kernels. The Deputy Commercial Tax Officer levied State sales tax on the penultimate purchase of raw nuts, contending that the kernels were not the same goods as the raw nuts. The appellants argued that und…

The assessee, Mis. Malviya Chemical & Pharmaceutical Pvt. Ltd., was granted an exemption under Section 4A of the Uttar Pradesh Trade Tax Act for production exceeding a fixed base‑production of 172.8 MT. In AY 1992‑93 it sold 382.125 MT and claimed exemption on the excess 209.325 MT, filing monthly returns and depositin…

M/S S.S. Engineers, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) to initiate a Corporate Insolvency Resolution Process (CIRP) against Hindustan Petroleum Corporation Ltd.'s subsidiary, HPCL Biofuels Ltd (HBL). The National Company Law Tribunal (NCLT) admitted the…

The Coffee Board conducts export auctions of coffee and requires registered exporters to furnish security deposits and, under a 1977 circular, contingency deposits or bank guarantees equal to the sales tax that would have been payable despite the exemption granted by Section 5(3) of the Central Sales Tax Act, 1956. The…

The State of Karnataka challenged the claim of exemption under Section 5(3) of the Central Sales Tax Act by Azad Coach Builders, a bus‑body manufacturer that supplied completed bus bodies to exporters (TATA/Ashok Leyland) for subsequent export of whole buses. The department argued that the sale was only of bus‑bodies, …

Ferro Alloys Corporation Ltd, a 100% export‑oriented unit manufacturing charge chrome, entered an off‑take agreement with Richco (Switzerland) and subsequently executed specific Charge Chrome Agreements for each shipment. The State of Orissa treated the sales for assessment years 1990‑91 and 1991‑92 as intra‑state sale…

Indian Oil Corporation Limited (IOCL) imports crude oil into Bihar, refines it and sells petroleum products to two oil marketing companies (BPCL and HPCL) and to local retailers. IOCL pays Entry Tax when the products enter the Patna local area but claims that Value Added Tax (VAT) should be set off against this Entry T…

The petitioners, registered dealers under the Orissa Sales Tax Act, 1947, challenged the constitutional validity of the Orissa Additional Sales Tax (Amendment and Validation) Act, 1983, which retrospectively validated assessments of an additional tax levied on gross turnover, allegedly violating the single‑point levy s…

Azad Coach Builders was contracted by an exporter to fabricate bus bodies according to a foreign buyer’s specifications, after which the bodies were mounted on chassis and exported as complete buses. The assessee claimed exemption from State sales tax under Section 5(3) of the Central Sales Tax Act, arguing that the sa…

Mahalaxmi Oil Mills and other assessees claimed that tobacco seed oil and tobacco seed cake were exempt from sales tax under Section 8 of the Andhra Pradesh General Sales Tax Act, 1957, which exempts "tobacco and all its products". The State of Andhra Pradesh contended that the definition of "tobacco" in the Act, mirro…

United Spirits Ltd., a manufacturer of beer and Indian Made Foreign Liquor, challenged the levy of entry tax by the State of Madhya Pradesh for the period April 2007 to March 2008, arguing that the State Government warehouses, not the manufacturers, caused the entry of goods into the local area and that no notification…

Supra Marketing Agencies, a dealer registered under the Andhra Pradesh General Sales Tax Act, 1957 and the Central Sales Tax Act, 1956, entered into a supply agreement with the Andhra Pradesh Backward Classes Cooperative Finance Corporation for the Adarna project. The State Commercial Tax Department directed the Corpor…

Frick India Ltd. and another challenged the levy of interest on purchase tax under the Haryana General Sales Tax Act, 1973 (and the Central Sales Tax Act, 1956) through a writ petition under Article 32 of the Constitution. The petitioners argued that the interest collected was unlawful and should be refunded. The Court…

The Supreme Court examined the constitutional validity of the Haryana Local Area Development Tax Act, 2000, which imposed an entry tax on goods entering local areas. The key issue was whether such a tax qualified as a "compensatory tax" and therefore fell outside the prohibition of Article 301 of the Constitution. The …

Monga Rice Mill, a Haryana-based miller, bought paddy, processed it into rice and sold the rice to an exporter who exported it. The miller claimed exemption from purchase tax on the paddy under Article 286 of the Constitution and Sections 5(3) and 15(ca) of the Central Sales Tax Act, 1956, arguing that the purchase was…

Titaghur Paper Mills Co. Ltd. was assessed for sales tax for the year 1980-81 under the Central Sales Tax Act, 1956 and the Orissa Sales Tax Act, 1947 after the assessing officer, having refused further adjournments, made a best‑judgment assessment treating the gross turnover as taxable. The company filed writ petition…

M/s Vellanki Frame Works imported timber and claimed exemption from Central Sales Tax under Section 5(2) of the CST Act, arguing that the goods were sold on the high seas to end‑buyers before crossing India’s customs frontiers, making the sale a "sale in the course of import". The Commercial Tax Officer and the High Co…

The Supreme Court examined whether an Official Liquidator, appointed to wind up Premier Cable Company Ltd., qualifies as a "dealer" under the Kerala General Sales Tax Act, 1963 and consequently bears sales tax liability on the auction sale of the company's assets. The Court held that the liquidator, by stepping into th…

The appellants, exporters of tea, bought tea at open auction from planters and exported it, claiming exemption from sales tax under section 5(3) of the Central Sales Tax Act, 1956. The assessing authority accepted the exemption claim as genuine but denied a refund of tax paid to the seller, holding that only the dealer…

The appellant, ALD Automotive Pvt. Ltd., a registered dealer under the Tamil Nadu Value Added Tax Act, 2006, claimed input tax credit (ITC) for tax paid on vehicle purchases but could not do so in the original assessment year because tax invoices were delayed. It later filed revised returns claiming ITC, which the Comm…

The appellants, registered dealers under the Tamil Nadu Value Added Tax Act, challenged the denial of input tax credit (ITC) on inter‑state sales where Form C was not filed, contending that Section 19(5)(c) of the Act and Rule 10(9)(a) of the Rules were unconstitutional. The Supreme Court held that the provision is a v…

The State of Andhra Pradesh (Revenue) appealed against a High Court order that allowed manufacturers, dealers and traders of capacitors to claim a concessional tax rate on the basis that capacitors are "electronic goods". The assessees relied on Government Orders 520 and 521 and a list prepared by the Electronic Commis…

Advan Oorlikon (P) Ltd., a sole selling agent for welding electrodes, sold goods to retailers at a catalogue price less a trade discount. For the assessment year 1971-72 it computed its inter‑state turnover as Rs 8,71,624 after deducting the trade discount of Rs 1,06,708, but the Sales Tax Officer refused the deduction…

The State of Madhya Pradesh issued a 1978 notification exempting purchase tax on iron and steel provided the goods had "suffered" entry tax under the State Entry Tax Act before purchase. A 1977 notification later exempted new industries, like Indore Iron and Steel Mills, from paying entry tax. The respondent claimed it…

Universal Hydrocarbons Co. Ltd. purchased raw petroleum coke (RPC) and, after a manufacturing process, produced calcined petroleum coke (CPC). Sales tax was levied on the sale of CPC under the Bihar Finance Act, 1981 and the Central Sales Tax Act, 1956. The company claimed a refund under Section 15(b) of the Central Sa…

Jai Beverages Pvt. Ltd. set up a soft‑drink bottling plant in Jammu with a capital outlay of over Rs 27 crore and sought exemption from General Sales Tax and Central Sales Tax under the Jammu & Kashmir New Industrial Policy (1998‑2003) which offered special incentives to "prestigious units" having an investment of Rs 2…

The appellants, cashew processors in Kerala, claimed that a 12 Oct 1973 government notification granting a retrospective sales‑tax exemption for purchases of imported raw cashew nuts (Sept 1970‑Sept 1973) could not be withdrawn and that the State was estopped from levying tax because ministers had assured them in 1971 …

Prism Cement Ltd., a unit that had been granted an absolute tax exemption under the Package Scheme of Incentives 1993 (PSI 1993) through an Eligibility Certificate (20‑02‑1998) and an Entitlement Certificate (24‑03‑1998), challenged the Maharashtra State's attempt to withdraw that benefit after the Finance Act, 2002 am…

Tata Steel Ltd. had been granted an eight‑year sales‑tax exemption under the Bihar Industrial Policy (1995‑2000) and enjoyed the benefit from August 2000 to March 2006. When the Jharkhand Value Added Tax Act, 2005 came into force, the exemption was withdrawn and the company applied to convert the remaining exemption pe…

Rallis India Ltd. claimed exemption from sales tax on its inter‑state cotton purchases for the period April‑June 1969, relying on the Commercial Tax Officer’s orders under section 10 of the Central Sales Tax Act and the proviso to section 6 of the Andhra Pradesh General Sales Tax Act. The State revised the assessment a…

The Oriental Coal Corporation, an unregistered coal dealer, was assessed to central sales tax for the years 1967-68 and 1968-69. The Allahabad High Court set aside the assessment, holding that Section 9 of the Central Sales Tax Act, 1956 imposed tax liability only on registered dealers. The State appealed, contending t…

The petitioners, cement manufacturers and their stockists, challenged three tax notifications—two by Andhra Pradesh (under its General Sales Tax Act and the Central Sales Tax Act) and one by Karnataka—reducing the sales tax rate on cement. They argued that the notifications created discriminatory preferences and violat…

M/s. A & G Projects & Technologies Ltd., a dealer registered under the Central Sales Tax Act, 1956, entered into three contracts for supplying capacitor banks to Karnataka Power Transmission Corporation Ltd. (KPTCL). The goods were procured from a manufacturer in Tamil Nadu via an EPC contractor outside Karnataka, with…

The Supreme Court, by a 9-judge bench, answered a reference on the interpretation of Articles 301-304 of the Constitution concerning the validity of entry taxes levied by states. The majority held that taxes simpliciter are not within the contemplation of Part XIII of the Constitution, and the word 'free' in Article 30…

The Supreme Court examined whether iron and steel reinforcement used in building works contracts retains its identity as "declared goods" under the Central Sales Tax Act, 1956, and consequently whether it is taxable at the restricted 4% rate prescribed in Section 15. The Court held that the 46th Constitution Amendment …

The Coffee Board challenged the levy of purchase tax on coffee it received from growers under the compulsory delivery provision of the Coffee Act, 1942, arguing that the transaction was a compulsory acquisition and not a sale. The Karnataka High Court held that an element of consensuality existed, making it a sale liab…

Birla Corporation Ltd., a cement manufacturer, bought dumpers in Tamil Nadu and paid tax under the Central Sales Tax Act, 1956. When the dumpers entered Rajasthan, the state demanded entry tax under the Rajasthan Tax on Entry of Motor Vehicles Into Local Areas Act, 1988. The assessee sought a rebate under Section 4(2) …

The dealers, M/s Sanjiv Fabrics, were registered under the Central Sales Tax Act, 1956 and authorized to issue Form ‘C’ for importing cotton and cotton yarn. They used Form ‘C’ to import cotton waste, polythene, sutli and tat, which were not covered by their registration certificate. The revenue levied penalties under …

The Indian Oil Corporation (IOC) supplied naphtha from its refinery at Barauni, Bihar to the fertilizer plant of Indian Explosives Ltd. at Kanpur, Uttar Pradesh via a pipeline, under a contract that required delivery against indents addressed to IOC's Kanpur installation. The Uttar Pradesh tax authorities treated the s…

The respondents, manufacturers of coke, were assessed for tax under the Bihar Finance Act, 1981 and the Deputy Commissioner issued revised assessment orders. After a change in the Deputy Commissioner, the new officer highlighted irregularities and informed the Joint Commissioner, who then exercised suo motu revision po…

Mis. Steel Authority of India Ltd, a public sector undertaking engaged in manufacture and inter‑state sale of iron and steel, was assessed under the Central Sales Tax Act, 1956 for the year 2001‑02 with a demand of Rs 19.25 crore. The company appealed the assessment before the Assistant Commissioner (first appellate au…

The Supreme Court examined whether the doctrine of promissory estoppel can operate against a State's legislative action granting sales‑tax exemption under Haryana's industrial policy. Mahabir Vegetable Oils and other appellants had invested heavily in solvent‑extraction plants based on Rule 28A, which initially exclude…

The Deputy Commissioner of Sales Tax stayed the appellant's assessments for the period 1 September 1976 to 31 August 1984, citing that the assessment was still in progress and would not be completed within the statutory time limit. The appellant challenged the stay, arguing that no show‑cause notice was served and that…

The appellant, Triveni Glass Ltd., manufactured tinted glass sheets using a process and raw materials different from plain sheet glass. The revenue assessed tax at 15% on these sheets under Entry IV of Notification No.5784, treating them as "all goods and wares made of glass" and excluded them from the 10% residuary ra…

The Supreme Court examined whether State entry‑tax statutes could levy tax on goods imported from abroad once they entered a local area for consumption, use or sale. It held that the import of goods ends when they cross India's customs frontier and are released for home consumption, after which the State has full compe…

Jay Bharat Credit and Investment Co. Ltd., a hire‑purchase financier, challenged the levy of sales tax on the total amount (vehicle price plus hire charges) paid by hirers under the Bengal Finance (Sales Tax) Act, 1941 as extended to Delhi and later the Delhi Sales Tax Act. The tax authorities held that the hire‑purcha…

The Supreme Court examined whether sales‑tax exemption/deferment granted to cement manufacturers under the Madhya Pradesh Commercial Tax Act, 1994, would continue to apply after the bifurcation of the erstwhile State of Madhya Pradesh into the reorganised State of Madhya Pradesh and the new State of Chhattisgarh. The C…

The Commissioner of Income Tax, Kerala appealed against the High Court’s order allowing Tara Agencies to claim a weighted deduction under Section 35B(IA) of the Income Tax Act for export‑related expenses. Tara Agencies purchased various grades of tea, blended them, and exported the blended product. The issue was whethe…

The appellants, leasing companies, entered into master lease agreements for equipment and were taxed by several states on the transfer of the right to use the goods. The states relied on explanations in their sales tax statutes that deemed the taxable event to occur where the goods were used, irrespective of where the …

The respondents, dealers in edible oils and stainless steel, made numerous inter‑state sales and furnished C‑forms obtained from their purchasers in their tax assessments. A survey revealed many of these C‑forms to be invalid or spurious, leading the tax authorities to issue notices for additional tax and penalty. The …

Sea Pearl Industries, a processor of seafood, entered into an agreement with an eligible export house to export its processed products. The export house opened a Letter of Credit in its own name, which was later endorsed to Sea Pearl and the foreign exchange credited to its account. Sea Pearl claimed a deduction under …

Union Medical Agency, a dealer registered under the Bombay Sales Tax Act, claimed a deduction under section 8(ii) for resales of goods purchased from a dealer registered only under the Central Sales Tax Act. The Sales Tax Officer disallowed the claim, the Tribunal upheld the disallowance, and the Gujarat High Court rev…

The appellants purchased goods from dealers who were exempt from sales tax under the Kerala General Sales Tax Act, 1963 and the Tamil Nadu General Sales Tax Act, 1959, and challenged the levy of purchase tax under s.5A of the Kerala Act and s.7A of the Tamil Nadu Act. The questions were whether such purchases constitut…

M/s Sri Chamundeswari Sugar Ltd., a sugar manufacturer, purchased sugarcane from growers and paid the Statutory Minimum Price fixed by the Central Government together with the State Advised Price (SAP) fixed by Karnataka. The assessing authority levied purchase tax on the total amount, including SAP, under the Karnatak…

The Supreme Court examined the validity of purchase‑tax provisions in the sales‑tax statutes of Punjab, Tamil Nadu, Kerala, West Bengal and Bombay, which imposed tax on goods purchased for manufacture when the finished goods were dispatched out of the state without a sale. Dealers challenged these provisions on the gro…

Crown Re‑roller (P) Ltd., a re‑rolling mill in Orissa, purchased iron and steel scrap from registered dealers. The State of Orissa, under an industrial policy, exempted raw material purchases from sales tax, but a 1989 notification shifted the taxable event to the first point of sale. The company claimed a refund of sa…

Crown Re-roller (P) Ltd., a re‑rolling mill, purchased iron and steel scrap from registered dealers after the State of Orissa issued a 1989 notification making such material taxable at the first point of sale. The company claimed a refund of sales tax under Section 14 of the Orissa Sales Tax Act, arguing that tax had b…

M/s Kurian Abraham Pvt. Ltd. purchased raw field latex in Kerala, processed it into centrifuged latex in Tamil Nadu and sold the product. For assessment years 1997‑98 and 1998‑99 the assessee relied on Circular No. 16/98 issued by the Kerala Board of Revenue under s.3(1A)(c) of the Kerala General Sales Tax Act, 1963, w…

M/s Padinjarekara Agencies Ltd., a dealer under the Kerala General Sales Tax Act and the Central Sales Tax Act, manufactures centrifuged latex from field latex (raw rubber) and claimed exemption under Government Notification SRO No. 1003/91 (later replaced by SRO No. 1727/93), which exempts "goods" made from rubber. Th…

Kalinga Tubes Ltd., a steel tube manufacturer, was assessed for central sales tax for the year 1962-63. The Sales Tax Officer demanded Rs 11,02,698 in 1966, which the Sales Tax Tribunal reduced to Rs 2,22,161 in 1970. The assessee claimed this amount as a deduction under Section 37 of the Income‑Tax Act in the assessme…

The appellants, dealers in tamarind in Andhra Pradesh, purchased tamarind from Orissa, paying tax there, and brought it into the state for sale. An amendment to the Andhra Pradesh General Sales Tax Act, 1957 (Act 19 of 1986) moved tamarind bought outside the state to the First Schedule, taxing it at the point of first …

M/s Aristo Printers Pvt. Ltd. prints lottery tickets for its customers and procures its own ink and processing chemicals. The Uttar Pradesh Trade Tax Officer levied tax under Section 3F(1)(b) of the Uttar Pradesh Trade Tax Act, 1948 on the value of the ink and chemicals, arguing that they were transferred to the custom…

Tata Engineering & Locomotive Co. Ltd., a manufacturer of motor vehicles, purchased items such as tyres, tubes and batteries and claimed a concessional sales tax rate of 1% under Section 13(1)(b) of the Bihar Finance Act, 1981 and Notification S.O. 604. The Deputy Commissioner rejected the claim, holding that these ite…

India Meters Ltd., a dealer in electric meters, collected freight and insurance charges separately from its customers but omitted them from its declared turnover. The assessing authority treated 50% of these charges as part of the sale price and levied sales tax. The dealer appealed, arguing that under Rule 6(c) of the…

The State of Haryana appealed against the Haryana Sales Tax Tribunal’s order directing Maruti Udyog Ltd. to deposit the full tax, interest and penalty before its appeal could be entertained. Maruti argued that the proviso to sub‑section (5) of Section 39 of the Haryana General Sales Tax Act, 1973, allowed an appeal wit…

The Supreme Court considered whether the sales‑tax exemption granted to industrial units under Bihar’s 1995 Industrial Policy (S.O. 478 dated 22‑12‑1995) survived the bifurcation of Bihar and the creation of Jharkhand. The Court held that Sections 84 and 85 of the Bihar Reorganisation Act, 2000 expressly continue all l…

The respondent, S.C. Jain, dealt in Tendu leaves and claimed that all his sales were confined to Uttar Pradesh, denying any inter‑state transactions. The assessing authority, relying on a transport permit (T.P. Form IV) issued by the Forest Department, levied Central Sales Tax on alleged inter‑state sales. The Sales Ta…

The appellants, Hindustan Brown Boveri Ltd. and Elecon Engineering Co. Ltd., were recognised dealers under the Gujarat Sales Tax Act who purchased raw materials using Form 19 certificates stating the materials would be used to manufacture taxable goods for sale within Gujarat. They later sold part of the manufactured g…

The appellant, Shiphy International, purchased fresh frog legs, cleaned them and froze them to prevent decay, and then exported the frozen legs, claiming exemption under Section 5(3) of the Central Sales Tax Act, 1956. The State argued that freezing altered the nature of the goods, so the exemption should not apply. Th…

Printers (Mysore) Ltd. and other newspaper publishers challenged the Central Sales Tax authorities' demand that they pay tax at the higher 10% rate on raw materials used for printing, arguing that the amendment to the definition of "goods" in the Central Sales Tax Act, 1956 (which excluded newspapers) should not depriv…

United Riceland Ltd., a dealer engaged in purchasing and dehusking paddy for export, was assessed purchase tax for the assessment year 1990-91 under the Haryana General Sales Tax Act, 1973. The dealer challenged the assessment, arguing that the exemption under Section 9(1)(b) should remain effective until the amendment…

Ashok Leyland Ltd., a manufacturer of commercial vehicles, filed Form F under Section 6A(2) of the Central Sales Tax Act, 1956 claiming that transfers of goods to its regional offices were stock transfers, not inter‑State sales. The Tamil Nadu assessing authority accepted the Form F, but later reopened the assessment, …

The Assistant Commissioner (CT) LTU Kakinada appealed against a High Court order that had quashed an assessment under the Andhra Pradesh Value Added Tax Act, 2005 because the statutory appeal was filed after the 60‑day limitation period. The High Court had allowed the writ petition under Article 226, holding that the s…

The appellants, major pharmaceutical manufacturers, challenged the Bihar Finance Act, 1981 which imposed a 10% surcharge on dealers with a gross turnover exceeding Rs.5 lakh and prohibited those dealers from passing the surcharge on to purchasers. They argued that the provision conflicted with the Drugs (Price Control)…

The petitioners, dealers under the Central Sales Tax Act, challenged the constitutional validity of sub‑section (2‑A) of section 9 of the Act (as amended in 1976) and the retrospective validation of penalties, alleging excessive delegation of legislative power and violations of Articles 19(1)(f), 19(1)(g) and 20(1) of …

The appellant, Commissioner of Trade Tax, Uttar Pradesh, challenged the respondent M/s Kartos International's claim that its scientific and biological equipment—such as biosafety cabinets, laminar flow cabinets, fume hoods, and clean room garments—were exempt from trade tax under Notification No. 1166 dated 10‑April‑20…

M/s Durga Projects Inc, a civil works contractor registered under the Karnataka Value Added Tax (KVAT) Act, 2003 and the Central Sales Tax Act, sought clarification from the Authority for Advance Clarification and Ruling on the tax rate applicable to works contracts before 1 April 2006. The AAR held that the rate shoul…

The Bihar Legislature enacted the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1993, imposing a tax of up to 5% on scheduled goods entering any local area in the State. The Patna High Court struck down the Act on grounds that it violated Article 301 of the Constitution, was not…

The Commissioner of Sales Tax, Uttar Pradesh challenged the tax treatment of purchases made by a dealer acting as a commission agent for out‑of‑state principals. The dealer bought agricultural produce and other goods in Uttar Pradesh and dispatched them to the principals in other states. The State argued that the purch…

The Government Medical Store Depot, Kamal, a central government department that supplies medical stores to government hospitals on a "no profit, no loss" basis, was assessed sales tax for the years 1964-65 to 1968-69 under the Punjab General Sales Tax Act, 1948. The tax authorities treated the depot as a "dealer" and o…

Gujarat Steel Tubes Ltd., a manufacturer of black and galvanised steel tubes, challenged the Kerala tax authorities' assessment that its galvanised pipes were taxable under Entry 46 of the Kerala General Sales Tax Act. The company argued that the galvanised pipes were "declared goods" and should not attract additional …

The Commissioner of Delhi Value Added Tax appealed against the Delhi High Court's order that exempted M/s ABB Ltd. from VAT on sales made to the Delhi Metro Rail Corporation (DMRC) under Sections 7(a) and (c) of the Delhi Value Added Tax Act, 2004. The issue was whether the import of goods and their inter‑state movemen…

The Supreme Court examined whether pan masala and gutkha, products containing betel nut and sometimes tobacco, could be taxed under various state sales‑tax statutes despite being listed as exempt under the Central Sales Tax Act, 1956. The Court analysed the classification of these products under the Central Excise Tari…

The appellant, M/s Hyderabad Engineering Industries, claimed exemption from Central Sales Tax on goods moved from its Hyderabad factory to its out‑of‑state godowns, arguing that the transfers were merely stock movements between branches and not inter‑State sales. The State of Andhra Pradesh contended that the movement …

The appellants, Telangana Steel Industries and others, challenged the levy of sales tax on iron wires produced from wire rods that had already been taxed. The issue was whether wires constitute a separate taxable commodity from the rods under Section 14(iv)(xv) of the Central Sales Tax Act, 1956, invoking the single‑po…

The State of Uttar Pradesh appealed against the High Court’s order that the Department of Telecommunications (DoT) was not liable to Uttar Pradesh Trade Tax on rentals collected from telephone subscribers. The Supreme Court examined whether the DoT qualifies as a "dealer" under Section 2(c) of the Uttar Pradesh Trade T…

Patel Brothers, a registered dealer, faced reassessment orders after providing false exemption claims and subsequently filed revision petitions under Section 81 of the Assam Value Added Tax Act, 2003, more than 335 days after the prescribed 60‑day limit. The petitions sought condonation of delay under Section 5 of the …

The State of Andhra Pradesh appealed against High Court decisions that set aside sales‑tax assessments made on returns filed after the prescribed filing date. The assessments were passed more than four years but within six years from the end of the assessment year. The Court examined the Andhra Pradesh General Sales Ta…

The Calcutta Club, a Section 25 company operating as a members' club, was served with a notice for non‑payment of sales tax on food and drinks supplied to its permanent members. The Club argued that, under the doctrine of mutuality, no sale occurred because the supplier and the buyer were the same persons, a view uphel…

Lloyd Electric & Engineering Ltd. claimed a 1% concessional Central Sales Tax (CST) rate under Himachal Pradesh's 2004 Industrial Policy, which was originally applicable up to 31‑03‑2009. The Council of Ministers decided to extend this concession to 31‑03‑2013 or until CST is phased out, and the Department of Industrie…

The State of Uttar Pradesh assessed Central Sales Tax on coal transactions carried out by the respondent, Kasturi Lal Har Lal, who sold coal by endorsing railway receipts while the goods were moving from Bihar to Uttar Pradesh. The Sales Tax Officer in Lucknow held that the sales were inter‑State under section 3(b) of …

M/s Ravi Prakash Refineries (P) Ltd. sold Sunflower De‑oiled Cake (SF DOC) in inter‑State trade and claimed a reduced central sales tax rate of 2% by producing Form C under Notification No. FD 119 CSL 2002(2). The assessing officer initially accepted the claim, but a later officer reopened the assessment, asserting tha…

The State of Tamil Nadu challenged the tax treatment of sales made by Dharangadhara Chemical Works Ltd. (the manufacturer) to Dharangadhara Trading Co. Ltd. (the trading company). The parties had a general agreement under which the trading company obtained orders from out‑of‑state buyers and the manufacturer booked the…

M/s Hotel Ashoka, a dealer under the Karnataka Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956, sold goods at its duty‑free shop in Bengaluru International Airport before the goods crossed the customs frontiers of India. The Assistant Commissioner of Commercial Taxes assessed Rs. 4,20,70,900 as sales tax,…