LAWS(SC)-2017-9-111

SHANTI FRAGRANCES Vs. UNION OF INDIA AND ORS

Decided On September 21, 2017
SHANTI FRAGRANCES Appellant
V/S
Union of India And Ors Respondents

JUDGEMENT

(1.) This batch of cases concerns Pan Masala containing tobacco and Gutka and their taxability under three State legislations, namely, the Delhi Sales Tax Act, 1975, the U.P. Trade Tax Act, 1948 and the Tamil Nadu General Sales Tax Act, 1959. The central question raised in all these appeals is the same. We shall first take up the Delhi case.

(2.) Under the Delhi Sales Tax Act, 1975, all sales (of goods) that are effected after the commencement of the Act, are made to suffer tax under Section 3(1) of the Delhi Act, whose marginal note reads "incidence of tax". Section 3 (1) states as under:-

(3.) Under Section 4, the marginal note of which reads "rate of tax", if tax is payable by a dealer under the Act, various rates in respect of taxable turnover are set out depending upon whether the goods are "declared goods" under the Central Sales Tax Act, 1956 or are goods which suffer tax at the rate of either twelve paise or twenty paise in the rupee, depending upon whether they are specified in the First Schedule or Fourth Schedule of the Act. In addition, food or drink served for consumption in a hotel or restaurant with which a cabaret, floor show or similar entertainment is provided, is taxed at the rate of forty paise in the rupee. All cases not covered by the above are then covered by a residuary sub-clause, in which the relevant rate at the given time was eight paise in the rupee. Section 4 of the said Act reads as under: