KVSS, 98 vis-à-vis. Sales tax assessment.

Last updated: 25 January 2008

Court :
SC

Brief :
What is conclusive is the order passed under section 90(1) determining the sum payable under the scheme. The terms ‘direct tax enactment’ or ‘indirect tax enactment’ or ‘any other law for the time being in force’ refer only to those statutes under which the order had been passed. Immunity is in respect of institution of any proceeding for prosecution of any offence under direct tax enactment or indirect tax enactment or from imposition of penalty under any of such enactments. The terms ‘direct tax enactment’ and ‘indirect tax enactment’ have been defined under sections 87(h) and 87(j). [Para 9] Admittedly, the case of the assessee did not come within the purview thereof. Amplitude of the provisions of the Scheme having been extended only to the enactments made by the Parliament, having regard to the constitutional scheme contained in article 246 of the Constitution of India, the same cannot be extended to assessment of sales-tax under a State Legislature. The legislative field to enact a law relating to sales-tax is within the exclusive domain of a State Legislature in terms of Entry 54, List II of the Seventh Schedule to the Constitution of India. The power and jurisdiction of the assessing authorities as also other authorities are required to be exercised in terms of the provisions of the said Act. Power to tax, it is well-settled, carries with it power to do all things which are necessary and ancillary therefor including taking preventive measures in regard to evasion of tax. [Para 10]

Citation :
Master Cables (P.) Ltd. v. State of Kerala CIVIL APPEAL NO. 2407 OF 2007 DECIDED ON 9-5- 2007.