TaxTMI 
TaxTMI 
2016 (8) TMI 1344
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.... the business of manufacture and sale of Television chasis, Coloured Televisions, Television parts and accessories. It had established its new unit in building 8-A, Udhyog Vihar, Greater Noida, Gautam Buddh Nagar. 4. Certain tax exemptions have been provided subject to certain conditions under Section 4-A of U.P. Trade Tax Act, 1948(hereinafter referred to as 'Act, 1948'). Petitioner satisfying requirement therein, completed formalities and applied for grant of exemption from payment of tax under Section 4-A of Act, 1948 in the year 2001. A Divisional Level Committee considered the matter and after satisfying that Petitioner is entitled for such exemption, Eligibility Certificate was issued by competent authority, allowing tax exemption for 10 years i.e. with effect from 24.10.2001 to 23.10.2011. 5. Provincial legislature promulgated "Uttar Pradesh Trade Tax (Amendment) Act, 2005" (hereinafter referred to as "Amendment Act, 2005") making amendment in Act, 1948. By Section 4 of Amendment Act, 2005, Section 3-H has been inserted in Principal Act i.e. Act, 1948 and consequential amendments have also been made in Section 4-A and 4-AA of Act, 1948. 6. Sections 4,5 and 6....
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....ntry 54, seventh Schedule, List II of the Constitution of India, word 'Sale and purchase' would not embrace anything regarding development of State and therefore levy of 'SDT' under Act, 1948 is beyond legislative competence and is ultravires 8. Respondents have filed counter affidavit justifying imposition of 'SDT' and have also averred that State Legislature is fully competent to make provision for levy of 'SDT'. 9. The only issue up for consideration is whether State legislature is competent to make provision for levy of 'SDT' under Act, 1948. 10. Provincial legislature is competent to make laws with reference to Entry 54 Schedule 7 List II of the Constitution of India on the subject of "sale and purchase of goods other than newspapers subject to provisions of Entry 92-A of list I". Entry 54 reads as under:- "54. Taxes on the sale or purchase of goods other than newspapers, subject to the provisions of Entry 92 A of List I" 11. Provincial Legislature, in reference to entry 54, thus, is competent for making laws for imposing tax. The incidence of tax must be sale or purchase of goods. 12. The word 'tax' itself has ....
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.... called, but if it is on the incident of 'sale or purchase of goods', as defined under Section 366 (29-A), such 'tax' would be within the ambit of Act, 1948. 16. We also find that the term 'Trade Tax' has been separately defined under Section 2 (bb) of Act, 1948 and reads as under:- "2(bb) 'Trade Tax' means a tax payable under this Act on sales of purchases of goods, as the case may be;" 17. A perusal of aforesaid shows that trade tax is one of the tax chargeable and leviable under Act, 1948 and within the ambit of Section 2 (n) but there may be other taxes also which can be imposed under Act, 1948 subject to the condition that incident of tax is "sale or purchase of goods", within the ambit of definition under Article 366(29- A) of the Constitution. 18. Even charging Section i.e. Section 3 provides that a dealer shall be liable to pay 'tax' for each assessment year as are provided under various Sections mentioned therein. Therefore, to read Act, 1948 as if therein, legislature can impose only 'Trade Tax' and not anything else is nothing but a complete lack of understanding in appreciation of above statute. 19. In State....
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....any change to the rate of tax on goods. 21. On the transaction of sale or purchase of goods, legislature proposes to impose tax termed as 'SDT' and with this intention, Amendment Act, 2005 has been enacted. By Section 3 thereof an amendment has been made under Section 3(1) of Act, 1948 and besides Section 3 A and Section 3D, Section 3-H has been mentioned in Section 3. Further Section 3-H itself has separately been inserted as a new Section imposing 'SDT' at the rate not exceeding 1% on taxable turnover, as the State may, by notification, specify on the dealers whose aggregate turnover as referred to in Section 3(2) exceeds fifty lakh rupees. 'SDT' shall be realised in addition to 'tax' payable under any other provision of Act, 1948. This tax shall cease to be levied after a period of five years from the date of publication of notification issued by State Government under this Section. 22. The point of levy of Tax i.e. 'SDT' falls on sale or purchase therefore, is leviable and permissible under Act, 1948. The definition of 'tax' has also been amended by legislature by Section 2 of Amendment Act, 2005 and now the definition of &#....