Tagged “sales-tax”

6 articles on sales-tax.

Supreme CourtSupreme Court of India

Calcutta Club v. State of West Bengal: mutuality survives the 46th Amendment

A 3-judge bench held in October 2019 that the doctrine of mutuality survives Article 366(29A) for incorporated members' clubs — sales tax and service tax both fail, GST left open.

Valkya Editorial·1 Jun 2026·9 min

LandmarkSupreme Court of India

Gannon Dunkerley II: valuing the works contract after the 46th Amendment

On 17 November 1992, a five-judge Constitution Bench fixed the post-46th-Amendment ceiling on State works-contract VAT — value at the time of incorporation, with eight permissible deductions.

Valkya Editorial·1 Jun 2026·12 min

Supreme CourtSupreme Court of India

HAL v. State of Karnataka: pre-46th amendment works-contract sales tax

On 16 December 1983, a three-judge bench held that HAL's contracts with the Indian Air Force for the servicing and overhauling of aircraft were integral works contracts and not severable into sale-of-goods and labour components, applying the Gannon Dunkerley dominant-nature framework in its last cycle before the 46th Amendment recast the field.

Valkya Editorial·1 Jun 2026·11 min

LandmarkSupreme Court of India

K. Damodarsamy Naidu: the bar-tax composite-supply problem

On 12 October 1999, a five-judge Constitution Bench upheld State sales tax on the full price of food and drink served at restaurants and bars under Article 366(29A)(f), with no service-element split.

Valkya Editorial·1 Jun 2026·9 min

Supreme CourtSupreme Court of India

L&T v. State of Karnataka: pre-completion apartment sales as works contracts

On 26 September 2013, a three-judge bench affirmed K. Raheja and held that pre-completion apartment sales by builders and developers fall within Article 366(29A)(b) as works contracts.

Valkya Editorial·1 Jun 2026·11 min

LandmarkSupreme Court of India

Gannon Dunkerley I: the works-contract sales-tax wall

On 1 April 1958, a five-judge Constitution Bench struck down the Madras works-contract sales tax as ultra vires Entry 48 List II — the wall that eventually forced the 46th Constitutional Amendment.

Valkya Editorial·1 Jun 2026·12 min