Rajasthan Sales Tax Act, 1954

Indian Hume Pipe Co. Ltd entered into a works contract with the Rajasthan Public Health and Engineering Department to supply and lay pre‑stressed cement concrete (PSC) pipes, valves and related materials, together with civil works. The company claimed exemption from sales tax under Section 7AA of the Rajasthan Sales Ta…

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 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 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 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…

M/s Bhag​at Singh purchased a truck on 26‑12‑2009 and was served a summons under the Rajasthan Tax on Entry of Motor Vehicle into Local Areas Act, 1988 in July 2012. An assessment order was issued on 9‑Oct‑2012 levying entry tax, penalty and interest. The assessee appealed, arguing that the assessment was barred by the…

The respondent, Binani Cement Ltd., set up a new cement plant in Rajasthan and claimed a Fixed Capital Investment (FCI) of Rs.532.52 crores, seeking exemption from sales tax under the "Sales Tax New Incentive Scheme for Industries, 1989". The State Level Screening Committee granted only a 25% exemption, treating the 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 Supreme Court examined whether Jaljira and similar spice mixtures manufactured by M/s Jalani Enterprises constitute "packed masala" under Entry No. 184 of the Rajasthan Sales Tax notification dated 29.03.2001. The High Court had held that Jaljira was a drink falling under the residuary entry and liable to tax at 10…

The appellants, Mis Black Diamond Beverages and others, challenged the inclusion of freight or delivery charges in the definition of "sale price" under Section 2(d) of the West Bengal Sales Tax Act, 1954. They argued that the statute only included packaging charges and that, because Section 2(h) of the Bengal Finance (…

The State Bank of Bikaner and Jaipur had advanced cash credit to National Iron and Steel Rolling Corporation, which secured the loan by mortgaging its factory and pledging plant and machinery. When the bank sued for repayment, the mortgaged property was auctioned and the Commercial Tax Officer claimed a prior right to …

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) …

Shiv Shakti Gold Finger applied for exemption from Rajasthan sales tax on its Gole Papad, a circular snack made of maida, salt, starch, papad soda, alum and food colour, invoking a 1970 notification that exempted "Papad and Badi (Mangori)". The Assistant Commissioner rejected the claim, holding that the exemption did n…

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 …

J.K. Synthetics Ltd. filed sales‑tax returns on the basis that freight charges on cement sales were not part of the taxable price and paid the tax shown in those returns. The Commercial Taxes Officer later added the freight amount to the sale price, assessed additional tax and levied interest under Section 11‑B of the …

The appellant, Delhi Cloth and General Mills Co., manufactured "rayon tyre cord fabric" and claimed exemption from sales tax under Item 18 of the Rajasthan Sales Tax Act, which referenced "rayon fabrics" as defined in the Additional Duties of Excise (Goods of Special Importance) Act, 1957 and Item 22 of the Central Exc…

Vishnu Metals, a manufacturer of stainless steel sheets, expanded its installed capacity and claimed a sales‑tax exemption under the Rajasthan Sales Tax New Incentive Scheme, 1989, on the ground that its total production—including job‑work performed for others—had increased by more than 25% of the original capacity. Th…

The Rajasthan Sales Tax Act, 1994 requires transporters to carry declaration Form ST‑18A and other documents under Section 78(2). A truck of Mis D.P. Metals was stopped at a check‑post without the form, seized and a penalty of 30% of the goods' value was imposed under Section 78(5). The respondents challenged the const…

The case concerned several civil appeals arising from the imposition of penalty under Section 78(5) of the Rajasthan Sales Tax Act, 1994 (in pari materia with Section 22A(7) of the Rajasthan Sales Tax Act, 1954) for carrying goods in movement with blank Form ST‑18A/18C that had been signed but left incomplete. The Supr…

E.I.D. Parry (India) Ltd., a sugar manufacturer, purchased sugarcane at a statutory minimum price and an additional price under Clause 5‑A of the Sugarcane (Control) Order, 1966. The additional price could be determined only after the sugar year ended, so the company paid an advance on that price, recorded only the min…

Associated Cement Co. Ltd., a cement manufacturer, filed its sales‑tax returns for 1973‑74 under the Rajasthan Sales Tax Act and the Central Sales Tax Act without including freight charges, believing they were not taxable. After the Supreme Court in Hindustan Sugar Mills Ltd. v. State of Rajasthan held that freight for…