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
MANU/DE/2196/2015
Civil
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
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