Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Kerala General Sales Tax Act: section 45A Penalty for evasion of tax |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Sale of Goods Act, 1930 (3 of 1930) Constitution of India, Central Sales Tax Act, 1956 (74 of 1956) Kerala General Sales Tax Act, 1963 (15 of 1963) |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Kerala General Sales Tax Act: s. 45A - Penalty for evasion of tax - Allegation against respondent-car dealer was that respondent showed the sale of cars from its Mahe Branch, wrongly arranged for registration under Motor Vehicles Act at Mahe and wrongly collected and remitted tax for those transactions under the provisions of Pondicherry Sales Tax Act while the sale of cars had concluded at Kozhikode Branch and by adoption of such means, respondent had derived advantage of paying sales tax in Pondicherry where the rate was lower and evaded payment of tax under the KGST Act in Kerela- Department imposed penalty of Rs.86 lakhs upon the respondent - High Court set aside the order of penalty - Appeal by Department - Held: Technically though the registration of a motor vehicle is a post-sale event, the event of sale is closely linked in time with the event of registration - Neither the manufacturer nor the dealer of a motor vehicle can permit the intended purchaser having an agreement of sale to use the motor vehicle even for taking it to the registration office in view of the statutory provisions - Motor vehicle remains in the category of unascertained or future goods till its appropriation to the contract of sale by the seller is occasioned by handing over its possession at or near the office of registering authority in deliverable and registrable state - Thus, sale is co-terminus with the registration of new motor vehicle - Jn the instant case, vehicles were registered at Mahe which lead to the conclusion that they were produced before the Registering Authority at Mahe prior to registration and thus sale concluded at Mahe - Respondent was not guilty of evasion of tax - Penalty was thus rightly set aside by the High Court - Constitution of India, 1950 - Article 286(2) - Central Sales Tax Act - s.4(2) - Sale of goods Act - s.4 - Constitution of India, 1950 - Article 286(2) |
Judge | Hon'ble Mr. Justice Shiva Kirti Singh |
Neutral Citation | 2016 INSC 106 |
Petitioner | Commissioner Of Commercial Taxes, Thiruvananthapuram, Kerala |
Respondent | Mis K.t.c. Automobiles |
SCR | [2016] 1 S.C.R. 994 |
Judgement Date | 2016-01-29 |
Case Number | 2446 |
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