Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Sales Tax: Delhi Sales Tax Act Section 4(2)(a)(v)-Delhi Sales Tax Rules 1975 1975-Rule 8(4)(c)-Sale transaction-Purchasing dealer failing to submit ST-/ form-liability of selling dealer to pay sales tax- |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Application Allowed |
Headnote | Sales Tax: Delhi Sales Tax Act, 1975, Section 4(2)(a)(v)-Delhi Sales Tax Rules, 1975-Rule 8(4)(c)-Sale transaction-Purchasing dealer failing to submit ST-1 form-liability of selling dealer to pay sales tax-Held, selling dealer is liable to pay sales tax-Object of the Act being to check evasion and collection of tax, State cannot lose its tax entitlement. The question which arose in present appeals is whether selling dealer who is not issued ST-1 forms by their purchasing dealer is disentitled to claim benefit of Section 4(2)(a)(v) of Delhi Sales Tax Act, 1975 and liable to pay tax on such transaction. Appellant-assessees contended that they were suffering due to failure and defaults on the part of purchasing dealers, in which they have played no part whatsoever and that under the scheme of the Act they are precluded from charging sales tax from other registered dealers since such a demand would invite prosecution under the Act; that as per Rule 8(4)(c) tax assessed must be paid as a condition for issuance of forms. The condition to deposit assessed amount of tax is a substantive provision of law going to the root of the right of the dealer to receive forms; that the impugned rule has been passed beyond the powers conferred under Section 71(2)(b) of the Act and therefore the rule is in excess of the jurisdiction and authority of law and as such is liable to be quashed; that the Administrator cannot take upon himself the power of the Parliament in making any substantive amendments in the Act or the Rules. Revenue contended that a measure which is intended to check the evasion of tax is a valid measure and it is in public interest to see that in the guise of freedom of trade, they do not evade the payment of tax; that the power of Administrator to provide for further safeguards to prevent evasion of tax and to enable the Revenue to check such evasion and collect tax is liable to be upheld so long as it does not contravene any specific/ express provision of the Act. |
Judge | Hon'ble Dr. Justice A.R. Lakshmanan |
Neutral Citation | 2005 INSC 49 |
Petitioner | Commissioner Of Sales Tax Delhi And Ors. |
Respondent | M/s. Shri Krishna Engg. Co. And Ors. |
SCR | [2005] 1 S.C.R. 825 |
Judgement Date | 2005-01-25 |
Case Number | 1717-1719 |
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