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2016 (8) TMI 1344 - HC - VAT and Sales TaxValidity of “State Development Tax” (SDT) whether State legislature is competent to make provision for levy of 'SDT' under Act, 1948? Held 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 - 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. The point of levy of Tax i.e. 'SDT' falls on sale or purchase therefore, is leviable and permissible under Act, 1948. - Power to levy 'tax' is an inherent attribute of sovereign function of State. It has power under charging provisions, to levy tax on the taxable turnover of dealer at the rates prescribed under provisions of Act, for raising revenue for public purposes. Ordinarily, it is used to express exercise of sovereign power to raise revenue for the expenses of government. In the present case, State has framed law for imposition of tax on sale or purchase of goods under Act, 1948. It had made provisions for imposition of Trade Tax in general and 'additional tax'. The definition of 'tax' is inclusive and can be extended to other taxes. To make this clear, legislature has also amended definition of 'tax' by including therein 'SDT' also. Petition dismissed - decided against petitioner.
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