Karnataka Sales Tax Rules, 1957

Xerox Modicorp Ltd entered into Full Service Maintenance Agreements (FSMA) and Spares and Service Maintenance Agreements (SSMA) with customers after selling Xerox machines. The dispute concerned whether the supply of spare parts, toners and developers under these agreements amounted to a sale liable to Karnataka sales …

M/s Indian Dairy Machinery Co. Ltd., a dealer with a branch in Karnataka, entered into a works contract and received goods from its head office in Gujarat via stock transfer. The company claimed the benefit of composition tax under Section 17(6) of the Karnataka Sales Tax Act, 1957, but the assessing authority denied i…

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 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 …

Larsen & Toubro Ltd., a contractor, executed works contracts and assigned portions of the work to registered sub‑contractors who paid sales tax on their own turnover. The issue was whether the payments made to these sub‑contractors should be included in L&T's total turnover for computing turnover tax under Section 6‑B …

Binani Industries Ltd, a dealer engaged in leasing machinery and vehicles, challenged the Karnataka Revenue Department’s reopening of its sales‑tax assessments for assessment years 1996‑97 to 1999‑2000 on the ground that the later circular of 23 Oct 1999, which overruled the earlier 12 Apr 1996 circular, could not be u…

United Breweries Ltd. (the appellant) challenged the assessment of sales tax on the value of bottles and crates supplied with its beer, arguing that these were not sold but were returned against a refundable deposit. The Commercial Tax Officer, the Tribunal and the Andhra Pradesh High Court held that the bottles and cr…

M/S Craft Interiors Ltd., a dealer in interior decoration, claimed deductions under Rule 6(4)(m)(i) of the Karnataka Sales Tax Rules for goods purchased from registered dealers and used in works contracts in the same form. The assessing authority denied the deduction, issuing provisional assessment notices under Sectio…