Delhi Sales Tax Act, 1975

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 …

The Supreme Court examined whether Rule 8(4)(c) of the Delhi Sales Tax Rules, which withholds issuance of ST‑1 declaration forms to dealers who have defaulted in tax or penalty payments, exceeds the Delhi Sales Tax Act, 1975. The selling dealers argued that they should not be liable for tax when their purchasing dealer…

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…

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…

M/S Star Paper Mills Ltd., a paper manufacturer, sued M/S Beharilal Madanlal Jaipuria Ltd. and others, a wholesale dealer, for non-payment of paper supplied on credit. The respondents contended that the invoices and related documents were fabricated, signed under duress, and that the transactions were fictitious to eva…

The appellant, A.P. Aggarwal, was the second name on a selection panel for the post of Member, Sales‑Tax Appellate Tribunal. After the first appointee resigned within six months, the Central Government, contrary to Office Memorandum No. 39021118/84 dated 14‑May‑1987 and Section 13(4) of the Delhi Sales‑Tax Act, 1975, i…

The East India Hotels Ltd. challenged an assessment that taxed sales made in the restaurants of its hotels under the Delhi Sales Tax Act, 1975. The appellant argued that food served in a hotel restaurant does not constitute a "sale" of goods and that Section 4(1)(c) of the Act applies only where cabaret or similar ente…

The State of Kerala appealed against a Kerala High Court judgment that struck down Section 59A of the Kerala General Sales Tax Act, 1963. Section 59A gave the State Government absolute and final power to determine the rate of sales tax on any goods, without any requirement to hear the affected dealers and without any p…

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 a batch of six appeals concerning the taxability of Replenishment Licences (REP licences) and the Duty Entitlement Passbook (DEPB) scheme under various State sales tax statutes. The appellants argued that the three‑judge decision in Vikas Sales Corporation v. Commissioner of Commercial Taxes,…

The importer M/s Seiko Brushware India brought pig‑hair bristles into India and sold them in 1998‑2000. The Delhi Sales Tax Act, 1975, Section 7 lists pig‑hair bristles as tax‑free goods, meaning no sales tax is payable on their sale. The Commissioner of Customs denied the benefit of Exemption Notification No. 34/98‑Cu…

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…