2007 (3) TMI 690 - HC - VAT and Sales Tax

Summary

Issues involved: Whether the State Government can collect sales tax or license fee from dealers selling lottery tickets.

W.P. (C) No. 4002 of 2007:
The petitioner, a partnership firm dealing with on-line lotteries, challenged the constitutionality of section 5BA of the Kerala General Sales Tax Act, 1963, and sought to quash exhibit P12 series notices proposing to collect licensing fees. The petitioner relied on the Supreme Court's decision in Sunrise Associates case, arguing that no tax can be collected on lottery tickets as they are considered actionable claims and not goods under the KGST Act. The respondents, however, cited precedents to support the collection of tax until a certain date. The court examined the definitions of "goods" and "sale" under the KGST Act and relevant constitutional provisions, ultimately ruling in favor of the petitioner based on the apex court's authoritative pronouncement.

O.P. Nos. 20701 and 29544 of 2002, and others:
Following the judgment in W.P. (C) No. 4002 of 2007 and the apex court's decisions, these writ petitions were also allowed. The State and its officials were restrained from collecting any tax or license fee from dealers of lottery tickets under the KGST Act. No costs were awarded in these cases.