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1988 (8) TMI 370 - SC - VAT and Sales TaxWhether the direct and immediate result of the impugned notification No. S.O. 934 dated August 1, 1984 was to impose an unfavourable and discriminatory tax burden on the imported goods? Held that:- The general rate of sales tax on hosiery goods was 5 per cent and it was the exemption for locally manufactured hosiery goods, granted by the said Notification No. S.O. 934 dated August 1, 1984, which constituted the departure. It is, therefore, really this notification which is discriminatory and which must be struck down. We find that the said Notification No. S.O. 934 dated August 1, 1984 is void and we quash the same. As quashing of this notification on the ground that it was void ab initio might lead to undue hardship for the dealers in the State of Bihar who might have sold locally manufactured hosiery goods without taking into consideration any amount on account of the liability to sales tax in view of the exemption granted by the said notification dated August 1, 1984.In order to obviate this hardship, we direct that the arrears of sales tax which would become payable by the dealers in the State of Bihar in respect of sales of local hosiery goods made during the period when the said notification was in operation should not be collected.
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