https://www.taxtmi.com/caselaws?id=165742 The amendment treating molasses transferred to an own distillery as "captive consumption" was held unconstitutional because self-consumption does not become a taxable event merely by redefining the transaction. The Court found the classification arbitrary and beyond the State's taxing power, so the amendment was invalid and unenforceable. It also held that "administrative charges" on captive transfer were a tax in substance, not a regulatory fee, because no quid pro quo was shown and a transfer within the same ownership is not a sale between distinct persons. The levy therefore lacked authority of law, and the impugned amendments and proceedings were set aside. en-us Thu, 17 Mar 2011 00:00:00 +0530 Fri, 17 Apr 2015 15:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=165742 The amendment treating molasses transferred to an own distillery as "captive consumption" was held unconstitutional because self-consumption does not become a taxable event merely by redefining the transaction. The Court found the classification arbitrary and beyond the State's taxing power, so the amendment was invalid and unenforceable. It also held that "administrative charges" on captive transfer were a tax in substance, not a regulatory fee, because no quid pro quo was shown and a transfer within the same ownership is not a sale between distinct persons. The levy therefore lacked authority of law, and the impugned amendments and proceedings were set aside. Case-Laws VAT and Sales Tax Thu, 17 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=165742