OTHER TAXES
Welfare Boards For Building And Construction Workers Mandatory Before Levy Of Cess: Supreme Court
The Supreme Court has recently held that the constitution of Welfare Boards under the Building and Other Construction Workers Act, 1996 (BOCW), is a mandatory precondition for the effective levy and collection of cess under the Building and Other Construction Workers' Welfare Cess Act, 1996The court ruled that in the absence of such Welfare Boards, cess could neither have been validly levied nor collected, as the statutory scheme under both enactments presupposes the existence of a functional...
Heavy Earth Moving Machinery Not 'Motor Vehicles' Liable For Road Tax: Supreme Court
The Supreme Court has recently held that Heavy Earth Moving Machinery (HEMM) and construction equipment vehicles used exclusively within private premises are not 'motor vehicles' liable to be taxed within the ambit of the Motor Vehicles Act, 1988 (the Act).A Bench of Justice Pankaj Mithal and Justice Prasanna B. Varale held,“We are of the conclusive opinion that the vehicles used by the appellants are vehicles of special types, precisely construction equipment vehicles which are suitable and are...
Stamp Duty Must Be Refunded If Sale Agreement Was Never Executed : Bombay High Court
The Bombay High Court has held that stamp duty paid for a property transaction that never went through must be refunded, even if the application is filed beyond the six-month limitation period under the law. A single-judge bench of Justice Somasekhar Sundaresan said the state cannot keep money collected as stamp duty when no sale agreement was ever executed. “Stamp Duty is not a transaction tax but a duty payable on an instrument, which necessarily has to conform to the definition set out in...
Textile Committee Cess Not Leviable On Independent Dyeing, Processing Units: Punjab And Haryana High Court
The Punjab and Haryana High Court has recently ruled that the textile committee cess cannot be imposed on independent dyeing and processing units. It held that fabric processing on a job-work basis does not amount to “manufacture” under the Textile Committee Act, 1963. The bench, consisting of Justices Jagmohan Bansal and Amarinder Singh Grewal, stated that the respondent (department) is attempting to borrow the definition of 'manufacture' from the Central Excise Act, read with the Central...
Jharkhand High Court Scraps 'Net Charges' Formula For Electricity Duty Levy, Flags Excessive Delegation
The Jharkhand High Court on Monday struck down a proviso introduced by a state amendment to the Bihar Electricity Duty Act, 1948 that allowed electricity duty to be levied as a percentage of consumers' “net charges”. The court held that the legislature had delegated its taxing power to the executive without laying down any policy guidance. It further held that empowering the state government to fix electricity duty on a value-based formula, without prescribing standards or limits, amounted to...
Levy Of Service Tax On 'Access To Amusement Facilities' Unconstitutional: Kerala High Court
The Kerala High Court held that the levy of service tax on 'access to amusement facilities' is unconstitutional, as the entire activity squarely falls within the State's taxing power under Entry 62 of List II (entertainments and amusements) of the Constitution of India.Justices A. Muhamed Mustaque and Harisankar V. Menon stated that the provisions of the Entertainments Tax Act also seek to impose tax on the entire consideration received by the assessee from their clients/customers. The question...
Kerala High Court Upholds Over ₹15 Lakh Motor Vehicle Tax Demand On Puducherry-Registered Car Found Used In Kerala
The Kerala High Court upheld the motor vehicle tax demand on a car registered in Puducherry after finding no evidence that it was actually used there. Justices A. Muhamed Mustaque and Harisankar V. Menon noted that the NIL returns do not reflect any business being carried out by the assessee from Puducherry. The bench opined that the onus shifts to the assessee to show that the vehicle was not being used in Kerala to attract tax. In the case at hand, the assessee/appellant...
Ayurvedic Treatment Centre Classified As 'Hospital', Not 'Hotel', Luxury Tax Cannot Be Imposed: Kerala High Court
The Kerala High Court has held that an Ayurvedic Treatment centre is to be classified as a 'hospital' and not 'hotel', and therefore, luxury tax cannot be imposed. Justices A. Muhamed Mustaque and Harisankar V. Menon stated that the Ayurvedic Treatment Centre admits patients undergoing prescribed Ayurvedic treatment for a minimum duration, without offering hotel amenities, it qualifies as a hospital and luxury tax is not liable under the Luxury Tax Act. In this case, the...
Post-Award Claim For Reimbursement Of Municipal Tax Is Not Maintainable U/S 9 Arbitration Act: Calcutta High Court
The Calcutta High Court held that a partner cannot claim reimbursement of municipal tax payments through a post award petition filed under section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) as such issue constitutes substantive monetary dispute requiring adjudication under section 34 of the Arbitration Act. Justice Gaurang Kanth dismissed the petition filed by partners of M/s. Chander Niwas seeking directions for reimbursement from other partners of their share of...
Supreme Court Upholds View That Eden Gardens Not A 'Public Place' For Levy Of Advertisement Tax
The Supreme Court today dismissed a challenge to the Calcutta High Court order which held that Eden Gardens stadium was not a "public place" for the purpose of levying advertisement tax under the Kolkata Municipal Corporation Act.A bench of Justices Vikram Nath and Sandeep Mehta heard the matter. Senior Advocate Jaideep Gupta appeared for petitioner-Kolkata Municipal Corporation. Senior Advocate Rajiv Shakdher appeared for respondents.Gupta argued that every bit of the Eden Gardens stadium can...
Working Men/Women's Hostels Are Residential Properties, Cannot Be Taxed At Commercial Rates: Madras High Court
The Madras High Court has recently ruled that hostels providing accommodation to working men and women are residential properties and, therefore, property tax, water tax, and electricity charges cannot be levied at commercial rates. The ruling came in response to petitions filed by hostel owners in Chennai and Coimbatore challenging Chennai municipal authorities and the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) for reclassifying their hostels from residential to commercial...