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1958 (4) TMI 65 - SC - VAT and Sales TaxWhether it is a question of policy whether taxes should be imposed on the supply of materials in building contracts, and that, therefore, the power conferred by section 2 on the Government to extend a law with modifications cannot be exercised so as to modify a provision of the Bengal Finance (Sales Tax) Act, 1941, relating to that matter? Held that:- The modification made by the Central Government, assuming that that is its true character, does not involve any change of policy underlying the Bengal Finance (Sales Tax) Act, 1941. Indeed, the modification gives effect to the policy of that enactment which was to bring construction contracts within the ambit of the taxation powers of the State, and which failed only for want of legislative authority. Whether we view the notification as one extend- ing a subsisting statute to Delhi or as extending it with modifications so far as the impugned provisions are concerned, it is intra vires section 2. Appeal dismissed.
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