Sales Tax

Sale price

— Notional sale price — Single point tax — State Act providing for levy and collection of tax on sale of notified goods on the statutory retail price (MRP) declared on the package of such goods — Validity — Such a provision, to the extent it postulated levy and collection of tax on MRP in case of first point of sale effected by a manufacturer/ wholesaler/distributor to a retailer, rightly held by High Court to be ultra vires — Further held, the measure to which the rate of sales tax is to be applied must have a nexus to the taxable event and must not be divorced from it — Hence, where the price is the basis for measuring tax, it must relate to the actual transaction of the sale and not the price at which a sale might take place in future — Case-law discussed, (2006) 6 SCC 773-A

Sales Tax

Rajasthan Sales Tax Act, 1994 (22 of 1995)

— Ss. 4-A and 4 — Interrelation between S. 4-A and S. 4 — Nature of S. 4-A — Held, S. 4-A which projects itself as an exception to S. 4, creates a legal fiction in respect of sale price, (2006) 6 SCC 773-B

Sales Tax

Relief

— Impugned machinery provision relating to quantification of single point tax at the stage of sale by wholesaler to retailer found to be ultra vires — In such circumstances, where the impugned tax component had been passed on to subsequent purchases, refund claims restrained from being entertained — If not so passed on and deposited with the authorities, directed to be adjusted against future demands, if any, (2006) 6 SCC 773-C

Government of India Act, 1935

— Sch. VII List II Entry 48 — Expression ``taxes on the sale of goods'' in, held, is in pari materia with the similar expression in Entry 54 in List II of Sch. VII of the Constitution, (2006) 6 SCC 773-D