https://www.taxtmi.com/caselaws?id=341537 A fiscal classification under the Karnataka Value Added Tax regime was upheld because the levy was on liquor as goods, not on services or ambience, and the exemption scheme drew a real distinction between sealed-bottle sales in liquor outlets and liquor served in bars and restaurants. The Court applied the settled test that tax legislation may classify persons, dealers, goods and areas if the differentia is intelligible and has a rational nexus with the object of taxation. The urban-rural and class-based distinctions were treated as economically relevant and non-arbitrary, so the discrimination and ultra vires challenge failed and the writ appeals were dismissed. en-us Wed, 22 Mar 2017 00:00:00 +0530 Wed, 19 Apr 2017 10:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=341537 A fiscal classification under the Karnataka Value Added Tax regime was upheld because the levy was on liquor as goods, not on services or ambience, and the exemption scheme drew a real distinction between sealed-bottle sales in liquor outlets and liquor served in bars and restaurants. The Court applied the settled test that tax legislation may classify persons, dealers, goods and areas if the differentia is intelligible and has a rational nexus with the object of taxation. The urban-rural and class-based distinctions were treated as economically relevant and non-arbitrary, so the discrimination and ultra vires challenge failed and the writ appeals were dismissed. Case-Laws VAT and Sales Tax Wed, 22 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=341537