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Supreme Court Upholds Territorial Limitation of Sales Tax Exemption After State Bifurcation. Benefit of exemption/deferment granted under unified Madhya Pradesh is confined to the state where the industrial unit is located and does not extend to inter-state transactions with the other successor state.

The Supreme Court considered a batch of appeals arising from the bifurcation of the State of Madhya Pradesh into the reorganised State of Madhya Prade...

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Bombay High Court Allows Writ Petitions Challenging Penalty Under Central Sales Tax Act for Alleged Misuse of Registration Certificate. Court Holds That Mere Issuance of C-Forms Without Actual Inter-State Movement Does Not Attract Penalty Under Section 10(d) of CST Act, 1956.

The petitioner, M/s. Brijda Roadlines Pvt. Ltd., a transport company engaged in the business of transportation and holding a dealership from Bharat Pe...

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High Court of Karnataka Considers Legality of Penalty Imposed Under Section 10(b) of CST Act for Misuse of C-Forms in Cement Industry. Court Examines Whether Penalty is Sustainable When Purchased Goods Are Included in Registration Certificate and Used for Purposes Other Than Manufacturing.

The High Court of Karnataka, Kalaburagi Bench, heard a sales tax appeal and connected revision petitions concerning the levy of penalty under Section ...

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Supreme Court Remands Kerala Luxury Tax on Tobacco Case to High Court for Determination of Trade Restriction Under Article 301. High Court Must First Find Infringement of Article 301 Before Considering Article 304(b) Saving, Clarifying Kalyani Stores Decision.

The case involved a challenge to the Kerala Luxury Tax on Tobacco (Validation) Act, 1964, enacted after the Supreme Court invalidated earlier rules fo...

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Bombay High Court Allows Reference in Sales Tax Case — Sale to Purchaser's Branches in Another State Constitutes Inter-State Sale Under Section 3(a) of Central Sales Tax Act, 1956. Movement of Goods from Maharashtra to Vapi and Silvasa Occasioned by Sale, Hence Inter-State Sale.

The applicant, M/s K.C. Metal Industries, a manufacturer and seller of copper strips and bars registered under the Bombay Sales Tax Act, 1959 and the ...

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High Court Quashes Assessment Order and Trade Circular as Ultra Vires Section 6A of CST Act. Inter-State Job Work Movement Not Deemed Sale Under Section 6A Because It Does Not Cover Principal-to-Principal Transactions.

The petitioner, a manufacturer and job worker, received spent catalyst from customers within and outside Maharashtra, processed it, and returned the r...

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Supreme Court Hears Appeals Against High Court Quashing of Tax Assessment in Inter-State Gas Sale Dispute. State Imposed Tax on Sale of Natural Gas Extracted Under Production Sharing Contract, High Court Quashed Assessment and Directed Refund.

The Supreme Court of India heard a group of civil appeals filed by the State of Uttar Pradesh against the judgment of the Allahabad High Court, Luckno...

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Bombay High Court Dismisses Petition Challenging Trade Circulars Restricting CST Exemption to Registered Dealers. State Government Cannot Grant Exemption for Inter-State Sales to Unregistered Dealers Under Section 8(5) of Central Sales Tax Act, 1956 After 2002 Amendment.

The petitioners, Prism Cement Limited and its shareholder/director, filed a writ petition challenging three trade circulars issued by the Commissioner...