https://www.taxtmi.com/caselaws?id=213012 A State sales tax levy must retain a real nexus with the sale or purchase of goods; a charge tied to brick kiln production capacity, rather than an actual sale transaction, falls outside Entry 54 of List II. The Punjab General Sales Tax Act provision authorising lump sum tax on brick kiln owners was therefore beyond State legislative competence under Article 246 read with Entry 54 of the Seventh Schedule. The impugned levy was held ultra vires, the demand raised under it was set aside, and the levy could not be enforced against the petitioners. en-us Tue, 21 Feb 2012 00:00:00 +0530 Tue, 23 Sep 2014 12:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=213012 A State sales tax levy must retain a real nexus with the sale or purchase of goods; a charge tied to brick kiln production capacity, rather than an actual sale transaction, falls outside Entry 54 of List II. The Punjab General Sales Tax Act provision authorising lump sum tax on brick kiln owners was therefore beyond State legislative competence under Article 246 read with Entry 54 of the Seventh Schedule. The impugned levy was held ultra vires, the demand raised under it was set aside, and the levy could not be enforced against the petitioners. Case-Laws VAT and Sales Tax Tue, 21 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=213012