Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Rajasthan Agricultural Produce Markets Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Rajasthan Agricultural Produce Markets Act, 1961: s.9(2) – Liability of Market Committees to pay service tax on market fees received for allotting/renting/leasing the shop/shed/platform/land – Held: Exemption circular No.89/7/2006 dated 18.12.2006 provides that service tax is not leviable on activities performed by the public authorities under the provisions of law which are mandatory and statutory functions and the fee collected for performing such activities is in the nature of a compulsory levy as per the provisions of the relevant statutes and is deposited into the Government Treasury – Under sub-section(2) of s.9, the word used is “may”, therefore, the activities mentioned in s.9(2)(xvii) cannot be said to be mandatory statutory duty and/or activity – Under s.9(2), it is not a mandatory statutory duty cast upon the Market Committees to allot/lease/rent the shop/platform/land/space to the traders – Even the fees which is collected is not deposited into the Government Treasury – It will go to the Market Committee Fund and will be used by the Market Committee(s) – Such a fee collected cannot have the characteristics of the statutory levy/statutory fee – Thus, activities of allotting/renting/leasing of shop/shed/platform/land by Market Committees to the traders is not a mandatory statutory duty cast upon the Market Committees under s.9 of the Act and therefore, Market Committees are not exempt from payment of service tax on such activities. Interpretation of Statutes: Exemption notification – Construction of – Held: Not be liberally construed – Notification has to be read as a whole – If any of the conditions laid down in the notification is not fulfilled, the party is not entitled to the benefit of that notification – Circular/Government Order/Notification.Interpretation of Statutes: Taxing statutes – Exception or exempting provision – Construction of – Held: An exception and/or an exempting provision in a taxing statute should be construed strictly – It is not open to the court to ignore the conditions prescribed in the relevant policy and the exemption notifications issued in that regard – The statutory provisions providing for exemption have to be interpreted in light of the words employed in them and there cannot be any addition or subtraction from the statutory provisions. Interpretation of Statutes: Taxing statutes – Interpretation of – Strict interpretation – In a taxing statute, it is the plain language of the provision that has to be preferred – Strict interpretation of the provision is to be accorded to each case on hand – Purposive interpretation can be given only when there is an ambiguity in the statutory provision or it results in absurdity. Interpretation of Statutes: Fiscal/Taxing statutes vis-a-vis Exemption notification – Interpretation of – Held: In the event of ambiguity in a provision in a fiscal statute, a construction favourable to the assessee should be adopted – However, said principle shall not be applicable to construction of an exemption notification, when it is clear and not ambiguous – Thus, it will be for the assessee to show that he comes within the purview of the notification – Eligibility clause in relation to exemption notification must be given effect to as per the language and not to expand its scope deviating from its language – Thus, there is a vast difference and distinction between a charging provision in a fiscal statute and an exemption notification. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2022 INSC 224 |
Petitioner | Krishi Upaj Mandi Samiti, New Mandi Yard, Alwar |
Respondent | Commissioner Of Central Excise And Service Tax, Alwar |
SCR | [2022] 1 S.C.R. 700 |
Judgement Date | 2022-02-23 |
Case Number | 1482 |
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