Veer Service Station and Ors. v. GNCT of Delhi and Ors. - (High Court of Delhi) (04 Aug 2015)
Levy of VAT on the sale price of transaction yet to take place not sustainable in law
The Delhi High Court struck down Explanation 2 to Section 2 (1) (zd) of the Delhi Value Added Tax (Fourth Amendment) Act, 2012 as being ultra vires the Constitution. The Petitioners, the Delhi Petrol Dealers Association, had contended that under Explanation 2 VAT could be levied on the price charged for a sale which was yet to take place. The Court took note of a Supreme Court ruling that the "law prohibits taxing of a transaction which is not a completed sale".
Relevant : State of Rajasthan and Anr. vs. Rajasthan Chemists Association MANU/SC/3304/2006
Moriroku UT India (P) Ltd. vs. State of U.P. and Ors. MANU/SC/7350/2008
The Sales Tax Officer, Pilibhit vs. Budh Prakash Jai Prakash MANU/SC/0119/1954
Tags : VALUE ADDED TAX DELHI SALE ULTRA VIRES