Supreme Court Rulings

'Surgical cotton' & 'cotton' commercially distinct; Rajasthan / Central Sales tax applicable 

SC upholds sales tax levy on “surgical cotton” at 4% under Rajasthan Sales Tax Act (Act) and Central Sales Tax Act, during AY 1992-93; Rejects assessee’s contention that transfo...View More

Dismisses Revenue SLP; No service tax leviable on Chit Fund business 

SC dismisses Revenue’s SLP against Delhi HC judgment in Delhi Chit Fund Association; HC had held that services in connection with chit business not liable to service tax; HC further held that ch...View More

Sales tax retained under State Incentive Scheme liable to excise post July 2000 

SC allows deduction of 75% sales tax collected but retained (along with balance 25%) as per ‘Rajasthan Sales Tax Incentive Scheme 1989’ (Scheme), from assessable value u/s 4 of Central Exc...View More

Duty paid under protest not hit by unjust enrichment, Allows refund claim 

Allows refund claim of duty paid under protest as same not hit by bar of unjust enrichment; Contracts being fixed price contract without any escalation clause, limitation u/s 27 of Customs Act, 1962 n...View More

Reverses HC order; Denies 75% exemption applying 'special law overrides general' maxim 

SC reverses HC order, denies benefit of 75% tax exemption to cement company as ‘Prestigious unit’ under Rajasthan’s “Sales Tax New Incentive Scheme for Industries, 1989”;...View More

Rejects liberal construction to exemption condition violation; Overrules HC judgment allowing relief 

SC reverses P&H HC ruling allowing clubbing of industrial units to avail tax exemption under Rule 28A of Haryana General Sales Tax Rules; Rule stipulates payment of availed tax benefit with intere...View More

Upholds interest on HSD Oil credit recovery, Relies on Sangram Spinners ruling 

SC upholds levy of interest at 24% p.a on recovery of wrongly availed MODVAT credit against High Speed Diesel Oil (HSDO) u/s 112 of Finance Act, 2000; Provisions of Sec 112 merely declaratory in natur...View More

Larger bench affirms Raheja decision, States can levy sales tax on flat sale 

3 judge bench of SC approves ratio of 2 - judge bench decision in Raheja Development on works contract; States do have competence to levy sales tax on sale of goods in an agreement of sale o...View More

Denies credit on equipment exported 'as is' with final product, Upholds Tribunal order 

Denies MODVAT credit of purchased machinery parts / equipment, subsequently exported in CKD condition alongwith manufactured final product, for setting up of plant in Vietnam; Rejects assessee's class...View More

Allows credit on non-duty paid inputs, Buyer only to take 'reasonable care' 

Allows deemed MODVAT credit on inputs received from supplier, despite non-discharge of full duty liability by input-manufacturer; Rule 57A(6) of erstwhile Central Excise Rules r/w Notification No. 58/...View More