SC Says 1974 Ruling on States' Power to Levy Additional Sales Tax Continues to Hold
- The Supreme Court affirmed that the 1974 S. Kodar ruling allowing states to impose additional sales taxes or surcharges remains valid.
- A seven-judge bench led by Chief Justice Surya Kant closed the nearly 27-year-old reference, finding it academic because of subsequent legal changes and the introduction of the GST regime.
- The case challenged Section 5A of the Orissa Sales Tax Act, which imposed additional taxes of 10% or 15% based on dealers’ annual turnover.
- The court said that state authority to impose such surcharges would be governed by the principles established in S. Kodar.
11 Articles
11 Articles
Greater Kashmir
SC upholds states’ power to levy additional sales tax, says case has become academic
New Delhi, Nov 04: The Supreme Court on Wednesday held that a 1974 Constitution Bench ruling upholding states’ power to impose additional sales tax or surcharge calculated as a percentage of the existing sales tax continues to hold the field, saying a reference on the issue had become academic. A seven-judge Constitution bench headed by Chief Justice of India Surya Kant unanimously held that the legal question referred to it nearly 27 years ago …
The Economic Times
Times of IndiaSC says 1974 ruling on states' power to levy additional sales tax continues to hold
The Supreme Court held that a previous ruling from 1974 regarding additional sales tax remains applicable today. It determined that the legal question raised was now of no practical significance due to legislative changes. The Goods and Services Tax law implementation in 2017 contributed to this determination. The court ruled that state legislatures' ability to impose surcharges is governed by existing precedents.
SC upholds states' power to levy additional sales tax, says case has become academic - OrissaPOST
New Delhi: Supreme Court Wednesday held that a 1974 Constitution Bench ruling upholding states’ power to impose additional sales tax or surcharge calculated as a percentage of the existing sales tax continues to hold the field, saying a reference on the issue had become academic. A seven-judge Constitution bench headed by Chief Justice of India […]
The Supreme Court upheld the right of states to levy additional taxes, surcharges, and cesses on sales and purchases based on existing taxes. The seven-judge bench upheld the previous legal position.
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