The components which enter into the concept of a tax are as follows: The character of the imposition known by its nature, which prescribes the taxable event attracting the levy.[1000204750005] A clear indication of the person on whom the levy is imposed and who is obliged to pay the tax.[1000204750005] The rate at which the tax is imposed.[1000204750005] The measure or value to which the rate will be applied for computing the tax liability.[1000204750005] If those components are not clearly and definitely ascertainable, it is difficult to say that the levy exists in point of law, and any uncertainty or vagueness in the legislative scheme defining any of those components will be fatal to its validity.[1000204750005]

Govind Saran Ganga Saran vs Commissioner Of Sales Tax

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1985 Supreme(SC) 155

R.S.PATHAK, E.S.VENKATARAMIAH
Govind Saran Ganga Saran – Appellant
Versus
Commissioner Of Sales Tax – Respondent

Advocates:
ANJALI VERMA, L.K.PANDEY, L.M.SINGHVI, N.K.Bhuraria, R.C.CHAWLA, R.N.Poddar, S.C.Manchanda

Judgement Key Points

The components which enter into the concept of a tax are as follows:

The character of the imposition known by its nature, which prescribes the taxable event attracting the levy.[1000204750005]
A clear indication of the person on whom the levy is imposed and who is obliged to pay the tax.[1000204750005]
The rate at which the tax is imposed.[1000204750005]
The measure or value to which the rate will be applied for computing the tax liability.[1000204750005]

If those components are not clearly and definitely ascertainable, it is difficult to say that the levy exists in point of law, and any uncertainty or vagueness in the legislative scheme defining any of those components will be fatal to its validity.[1000204750005]

Judgment

PATHAK, J.:- This appeal by special leave is directed against the judgment and order of the High Court of Delhi dismissing the appellants writ petition questioning the liability imposed on him in a sales tax assessment.

2. The appellant carries on business as a dealer in the re-sale of cotton yarn. As a dealer he has been registered under the Bengal Finance (Sales Tax) Act, 1941 as applied to the Union Territory of Delhi (hereinafter referred to as the State Act). The appellant says that he purchases cotton yarn and sells it to registered dealers, unregistered dealers and consumers. For the assessment year 1968-69 the appellant submitted his return of turnover under the State Act and claimed exemption in respect of the turnover of sales of cotton thread on the ground that it was an exempted item under Entry No. 21 of the Second Schedule. The Sales Tax Officer, by his order dated October 29, 1970, held that the sales were effected in respect of cotton yarn and, therefore they were liable to tax at one per cent. On appeal, the Assistant Commissioner of Sales Tax took a contrary view and on his finding that the transactions were in respect of cotton thread he allowed the appeal

Click Here to Read the rest of this document

1985 Supreme(SC) 155

R.S.PATHAK, E.S.VENKATARAMIAHGovind Saran Ganga Saran – AppellantVersusCommissioner Of Sales Tax – Respondent

Cases Referred (4)

R.S.PATHAK, E.S.VENKATARAMIAH
Govind Saran Ganga Saran – Appellant
Versus
Commissioner Of Sales Tax – Respondent