Uttar Pradesh Sales Tax Act, 1948

The Uttar Pradesh Government, under Section 3A of the Uttar Pradesh Sales Tax Act, 1948, notified that turnover from "old, discarded, unserviceable or obsolete machinery" would attract a 5% sales tax. A thermal power plant, in perfect working condition, was sold by the State Electricity Board to appellant 1, who used i…

Anoop Wines, a dealer in foreign liquor, commenced business on 1 May 1976. A sales‑tax survey directed the dealer to register for the assessment years 1976‑77 and 1977‑78, which it failed to do. The Sales Tax Officer imposed a penalty of Rs.4,500 under Section 15A(1)(g) of the Uttar Pradesh Sales Tax Act, 1948 for non‑…

The appellants, manufacturers of rubber flaps used to protect tyre tubes, were taxed under sub‑entry (2) of Entry 43 of the Uttar Pradesh Sales Tax Act, 1948 as accessories of motor vehicles. They contended that the flaps were not accessories of a motor vehicle but only of tyres or tubes and should therefore be taxed a…

Indo International Industries manufactured hypodermic clinical syringes and, for the assessment year 1973‑74, claimed that the turnover up to 30 Nov 1973 should be taxed at 4 % as "hospital equipment" under Entry 44 (or at 3½ % as an unclassified item) and the turnover from 1 Dec 1973 to 31 Mar 1974 at 7 % as an unclas…

The petitioners, who had defaulted on Uttar Pradesh sales tax, were subject to arrest and detention under the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950, as a method of recovering arrears treated as land revenue. They challenged the constitutionality of this process, alleging violations of Articles 14…

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 State of Bihar issued a notification requiring carriers transporting goods exceeding a specified quantity to carry Forms XXVIII A or XXVIII B as permits for verification and assessment of sales tax. Harihar Prasad Debuka, a registered dealer, was penalised for not correctly completing the form and challenged the no…

Mahalaxmi Stores purchased large stone boulders and crushed them into smaller stones known as 'gitti'. The issue was whether this crushing process constituted 'manufacture' under Section 2(17) of the Bombay Sales Tax Act, 1959, thereby attracting sales tax. The Sales Tax Tribunal and the Bombay High Court held that it …

The Supreme Court examined a dispute where Mahindra & Mahindra Ltd. sought exemption from Uttar Pradesh sales tax on tractors, arguing that the exemption should be based on engine capacity (1800 CC) as per Central Government excise notifications. The Uttar Pradesh government had issued a sales‑tax notification exemptin…

The petitioners, transporters of goods across Uttar Pradesh, challenged Section 28-B of the Uttar Pradesh Sales Tax Act, 1948 and Rule 87 of the Uttar Pradesh Sales Tax Rules, 1948, arguing that the provisions were beyond the State's legislative competence, infringed Articles 301 and 19(1)(g) of the Constitution, and i…

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…

Janta Machine Tools applied for exemption from sales tax under the Uttar Pradesh Sales Tax Act, 1948 (Section 4A) based on a notification dated 30 September 1982, which granted exemption to units established between 1 October 1982 and 31 March 1985. The appellant claimed that actual production began on 4 December 1982,…

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…

Lipton (India) Ltd., a vanaspati manufacturer, sought a refund of sales tax paid on imported oil purchased from the State Trading Corporation (STC) for the period Dec 1984‑May 1988. The refund claim was based on the Parmeshwaran Committee formula, which required reimbursement of tax "subject to furnishing necessary dec…

The Supreme Court examined whether State governments could levy sales tax on the supply of food and drinks after the Constitution (Forty‑sixth Amendment) Act, 1982 inserted clause 29A in Article 366. The petitioners – restaurant owners in Tamil Nadu, residential‑hotel owners in Maharashtra and a halwai in Uttar Pradesh…

Vijay Enterprises, a small‑scale unit manufacturing cycle stands, began manual production on 1 March 1985 and made its first sale on 30 March 1985. It purchased a diesel generator on 4 March 1985 for Rs 72,800, bringing its total capital investment to more than Rs 3,00,000 as of the date of first sale. Under Section 4‑…

The assessee, M/s Universal Exporters, applied for blank Form III‑A under Rule 12A(5) of the Uttar Pradesh Sales Tax Rules to rebut the presumption of sale to a consumer under Section 3‑AAA of the Uttar Pradesh Sales Tax Act. The Sales Tax Officer rejected the application, holding that the transactions were exports of …

The assessee paid Uttar Pradesh sales tax on forward contracts that were later held ultra vires by the Supreme Court in Sales Tax Officer, Pilibhit v. Budh Prakash Jai Prakash. After the decision, the assessee sought refund of the tax, but the Sales Tax Officer rejected the claim on the ground of limitation under Artic…

The Commissioner of Sales Tax appealed against a High Court order that had accepted the turnover disclosed in the assessee's account books despite the assessee's failure to maintain a stock register as required under Section 12(2) of the Uttar Pradesh Sales Tax Act, 1948. The assessee, a manufacturer of silver ornament…

The appellants, industrial units manufacturing toffees in Uttar Pradesh, applied for eligibility certificates under a 1991 notification granting sales‑tax exemption to new and expanding units, but were denied on the ground that toffee was a "sweetmeat" listed in Annexure II of the notification. The High Court upheld th…

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…

Deva Metal Powders Pvt. Ltd. was originally assessed as dealing in metal and taxed at 2.2% on its aluminium powder. The assessing officer, relying on Hindustan Aluminium Corporation Ltd. v. State of Uttar Pradesh, invoked Section 22 of the Uttar Pradesh Sales Tax Act, 1948 to rectify the assessment, treating the powder…

The appellant, a dealer, was assessed for the 1975-76 year on 7 February 1979. A notice under Section 21 of the Uttar Pradesh Sales Tax Act, 1948, was issued and an order dated 18 January 1980 declared no further tax liability, effectively reopening the assessment. The appellant filed a rectification application under …

Mis. Modipan Fibres Company claimed exemption under Uttar Pradesh Notification No. 1093/1991 for the turnover of goods sold in excess of its base production. The Assessing Authority allowed exemption only on sales made after the base production was achieved, while the company argued that exemption should apply to the e…

The assessees, Super Cotton Bowl Refilling Works, repaired and refilled cotton bowls used in textile calendering machines and sought a declaration under section 35 of the Uttar Pradesh Sales Tax Act, 1948 that their activity did not constitute "manufacture" or "sale". The Commissioner of Sales Tax held that both questi…

The Uttar Pradesh Sales Tax Association challenged a writ issued by the Allahabad High Court that restrained a Deputy Commissioner (Appeals) Sales Tax, Agra, from exercising his quasi‑judicial powers under Section 9 of the Uttar Pradesh Sales Tax Act, 1948, and ordered the transfer of his pending cases. The Bar Associa…