TaxTMI 
TaxTMI 
2016 (5) TMI 667
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....1 of 2016 @ SLP(C) No.16793/2012, C.A. No.5122 of 2016 @ SLP(C) No.16810/2012, C.A. No.5123 of 2016 @ SLP(C) No.16837/2012, C.A. No.5124 of 2016 @ SLP(C) No.16841/2012, C.A. No.5125 of 2016 @ SLP(C) No.16900/2012, C.A. No.5126 of 2016 @ SLP(C) No.17164/2012 & C.A. No.5127 of 2016 @ SLP(C) No.17510/ 2012) JUDGMENT UDAY UMESH LALIT, J. 1. Leave granted. 2. These appeals by special leave challenge correctness of the common judgment and order dated 27.02.2012 passed by the High Court of Delhi at New Delhi in Sales Tax Appeal No.20 of 2012 and other connected matters. Apart from lead matter i.e. Sales Tax Appeal No.20 of 2012 filed by Indo Burma Petroleum Corporation Ltd., the High Court also dealt with Sales Tax Appeal Nos.6, 7, 10, 14, 16, 23, 25 and 27 of 2012 filed by Hindustan Petroleum Corporation Limited, Sales Tax Appeal Nos.8, 11, 17, 18, 21, 22, 28 and 30 of 2012 filed by Indain Oil Corporation Limited and Sales Tax Appeal Nos.9, 12, 13, 15, 19, 24, 26 and 29 of 2012 filed by Bharat Petroleum Corporation Limited. These petroleum companies had filed Sales Tax Appeals under Section 81 of the Delhi Value Added Tax Act, 2004 ("the Act" for Short). 3. On 01.06.2006 rates of....
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....ivable for such transfer; (iv) any sum charged for anything done by the dealer in respect of goods at the time of, or before, the delivery thereof; (v) amount of duties levied or leviable on the goods under the Central Excise Act,1944 (1 of 1944) or the Customs Act, 1962 (52 of 1962), or the Punjab Excise Act, 1914 (1 of 1914) as extended to the National Capital Territory of Delhi whether such duties are payable by the seller or any other person; and (vi) amount received or receivable by the seller by way of deposit (whether refundable or not) which has been received or is receivable whether by way of separate agreement or not, in connection with, or incidental to or ancillary to the sale of goods; (vii) in relation to works contract means the amount of valuable consideration paid or payable to a dealer for the execution of the works contract; less - (a) any sum allowed as discount which goes to reduce the sale price according to the practice, normally, prevailing in trade; (b) the cost of freight or delivery or the cost of installation in cases where such cost is separately charged; and the words "purchase price" with all their grammatical variations and cogna....
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.... which came into effect on 30.11.2006 and complete roll back w.e.f. 16.02.2007 the appellants continued to deduct amounts of Rs. 4/- per litre on Petrol and Rs. 2/- per litre on High Speed Diesel from the prevailing sale price and charged/recovered VAT in respect of sale price so reduced by Rs. 4/- and Rs. 2/- as stated above. 8. On 05.06.2007 following Gazette Notification was issued by the Government of NCT: "Notification No.F.3[8]/Fin.[T&E]/2007-08/ Dated 5th June, 2007 In exercise of the powers conferred by first proviso to clause [zd] of sub-section [1] of Section 2 of the Delhi Value Added Tax Act, 2004[Delhi Act 3 of 2005], the Lt. Government of the National Capital Territory of Delhi, hereby, directs that the date of publication of this notification in the Official Gazette, to be the date from which the proviso referred to above shall cease to be effective. By order and in the name of the Lt. Governor of the National Capital Territory of Delhi. [Ajay Kumar Garg] Dy. Secretary Finance [T& E]" 9. In October 2007, Notices of default under Section 32 of the Act were issued to the appellants. Notice dated 22.10.2007 issued to the appellants in the lead matter i.e.....
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....der: "17.... Tax is to be paid as per Section 4 of the Act on the taxable turnover. Taxable turnover is to be computed as per Section 5 r/w Section 2(1)(zm) of the Act. Section 2(1)zm) talks about the 'sale price'. 'Sale price' is defined by Section 2(1)(zd) as a valuable consideration for any sale including amount of tax payable under the Act. (emphasis in bold) Thus if a State Govt. wants to give relief against the price increased by the Central Government the it could only do so by not charging tax on the increased portion but for doing so it had to exclude the increased portion from the purview of the expression 'valuable consideration for any sale'. In our considered view purpose of the Govt. of NCT of Delhi in introducing the proviso in question, when considered from the plain language of the proviso, was to direct the appellant dealers to continue to pay the VAT as if there was no increase in the prices by the Central Govt. In our considered view, the act of the Govt. of NCT of Delhi in introducing the proviso in question, by no stretch of imagination, could goad the appellants to embark upon an exercise in reducing the basic price for calculating the VAT, as argued by the....