Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 3AA Tripura Sales Tax Act ss. 3A |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Tripura Sales Tax Act, 1976 (11 of 1976) |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Tripura Sales Tax Act, 1976 : ss. 3A, 3AA – Tripura Sales Tax Rules, 1976 – r. 3A(2) – Sub-rule (2) of the r. 3A, if ultra vires to the provisions of the TST Act – On facts, issuance of work order for hiring vehicles by ONGC, GAIL, FCI in favour of writ petitioners-suppliers of the vehicle – Writ petitioners challenging vires of r. 3A(2) and for refund of the amount so deducted as sales tax on transfer of the right to use goods – Single Judge held r. 3A(2) as ultra vires the TST Act which was upheld by the Division Bench – Single Bench also held that suppliers are liable to pay sales tax u/s. 3AA but the same was set aside by the Division Bench – On appeal, held: On combine reading of s. 3 r/w s.2(b) & 2(g), any transfer of the right to use any goods (including the vehicles) shall be deemed to a ‘sale’ and the transferor of the right to use any goods/vehicles can be said to be a dealer and thus, liable to pay the tax at the rate of 4% on any transfer of the right to use any goods as per proviso to s. 3(1) – Liability to pay the tax at the rate of 4% on any transfer of right to use any goods shall be u/s. 3(1) – r. 3A(2) provides only for a machinery/mechanism where the person buying the goods is required to deduct the tax at source and deposits the same with the Revenue – It does not in any manner change the chargeability of the tax or liability of the tax which is u/s. 3(1) r/w s. 2(b) & 2(g) – Thus, High Court erred in declaring r. 3A(2) ultra vires to TST Act and in quashing and setting aside the memorandum issued in 1992 by the State Government requiring the hirers-ONGC and GAIL to deduct 4% tax at source u/s. 3A out of the respective bills of the suppliers of the vehicles. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2023 INSC 284 |
Petitioner | The State Of Tripura & Anr |
Respondent | Chandan Deb & Ors. |
SCR | [2023] 3 S.C.R. 1134 |
Judgement Date | 2023-03-24 |
Case Number | 6500 |
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