1. Entries in the Schedule – Raw Aluminium Casting (Unfinished)

Aluminium casting sold to automobile industry in its raw, unfinished and primary form which requires further processing such as milling, drilling, tapping etc. by the purchasers before it is put to used in manufacture of motor vehicle/chassis is nothing but aluminium casting and would fall within the entry 29 of Part I of Schedule C of the Bombay Sales Tax Act, 1959 liable to 4% tax and not covered by residual entry 102 of Part II of Schedule C .

[Source: CST v. Jai Hind Industry Ltd., STR No. 58 of 2012, dated 30th October, 2015, (2016) 29 STJ 261 (Bom.)].

2. Interpretation of entry – Uniform pattern adopted by States can apply – Digital still image video camera

The uniform pattern adopted by several States to bring the statutes in line with the nomenclatures as suggested by Empowered Committee indicates that Digital Still Image Video Camera was not to be excluded from the list of items which would be taxable at 4% under Entry 41A of Third Schedule of The Delhi Value Added Tax Act, 2004.

[Source: M/s. Sony India Pvt. Ltd. v. CIT, ST Appeal No. 29 with 31 of 2013, dated 4th August, 2015, (2016) 29 STJ 281 (Del.)].

3. Schedule Entry – Sun Glasses

Merely because a commodity/term used in a notification may include in its widest expansion, certain commodities with variation on account of the dictionary meaning of the commodity/term used in the schedule/notification, the same by itself can not be a reason to include/classify the said commodity in the schedule/notification. The heading of HSN 90.04 is wide enough to include spectacles and sunglasses and the entry is very wide and sweeping. The use of the word ‘the like corrective, protective or other’ in fact indicates that the use of words spectacles and goggles have been used as genus. However, applying common parlance test, the history of the entry, and even the fundamental/basic meaning of the term ‘Spectacles’ as indicated in various decisions of courts and Hindi version of the notification, the entry spectacles in the Schedule is clearly related to and means corrective spectacles and the same in its sweep does not include sunglasses as projected by the appellant.

(Source: M/s. Ray Ban Sun Optics v. Dy. Commissioner, S.B. STR Nos. 543-545 of 2011 and 78-87 of 2012, dated 15th October, 2013 (2016) 29 STJ 311 (Raj.)).

4. Sale price – Fertiliser subsidy

Fertiliser subsidy given by the Central Government with a view to ensure that fertiliser prices do not exceed the price fixed it under Fertiliser (Control) Order does not form part of sale price of fertiliser sold.

[Source: M/s. Indian Potash Ltd. v. State of Kerala and Others, WP (C) Nos. 8444 & 12320 of 2011 and Others, dated 1st December, 2015, (2016) 29 STJ 196 (Ker)].

5. MRP inclusive of all taxes – Collection of tax

When goods are sold at “MRP inclusive of all taxes” it does not mean that there is a collection of tax in each and every case. When a dealer sells the goods manufactured at units both exempted and non-exempted units and adopts uniform retail price throughout India, it cannot be a ground to hold that sales tax is charged on goods manufactured from the exempt units. A market retail price stating that it is inclusive of all taxes could be starting point, but would not prove and establish that the tax has been collected.

[Dy. CCT v. M/s. Hindustan Lever Ltd., Civil Appeal No. 656 of 2008, dated 30th June, 2016, (2016) 29 STJ 172, (SC)].

6. Dealer – Banks and Non-Banking Finance Companies – Sale of vehicles for recovery of loan

The Banks and Non-Banking Finance Companies are dealer and liable to pay tax in respect of sale of vehicles for recovery of loan under section 2(11) of the West Bengal Value Added Tax Act, 2003.

[Source: M/s. Tata Motors Finance and Othrs. v. Asst. CST, WPTT Nos. 6 and 4 of 2011 and 24 of 2010, dated 8th October, 2013 (2016) 29 STJ 271 (Cal.)]

7. Entry Tax – Not applicable when stock transferred to other States

Entry tax is payable for import of goods for use, consumption or sale within the State. It is not payable when the goods imported are stock transferred to other States. It is not necessary that the intention not to use, or sell or consume must be there at the time of import of goods. In the normal course of running of a business carried over a large area in different States or even different local areas, what is relevant is not any intention which would be difficult to fathom but the actual course of conduct of the party. If there has been no consumption or use or sale within the local area in the facts like stock transfer than there can be no levy of entry tax on import of goods.

[Source: M/s. Unitech Wireless v. State of Bihar, WP. Nos. 7436, 7521, 7522 & 7534 of 2015, dated 11th August, 2015, (2016) 29 STJ 106 (Pat.)].