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2024 Supreme(SC) 702

B. V. NAGARATHNA, N. KOTISWAR SINGH
K. Arumugam – Appellant
Versus
Union of India – Respondent


Advocates appeared:
For the Appellant(s) : Mr. B. Krishna Prasad, AOR M/S. Parekh & Co., AOR Mr. Gautam Narayan, AOR Ms. Asmita Singh, Adv. Mr. Anirudh Anand, Adv. Mr. Tushar Nair, Adv. Mr. S. Ganesh, Sr. Adv. Ms. Rohini Musa, AOR Mr. Mukunda Rao, Adv. Mr. Nipun Katyal, Adv. Mr. George Poonthottam, Sr. Adv. Mr. Atul Shankar Vinod, Adv. Mr. Dileep Pillai, Adv. Mr. Kannan Gopal Vinod, Adv. Mr. M. P. Vinod, AOR Mr. Chirag M. Shroff, AOR Mr. Dhananjay Kataria, Adv. Mr. Raj Bahadur Yadav, AOR Mr. Mukesh Kumar Maroria, AOR
For the Respondent(s): Mr. A.R. Madhav Rao, Adv. Mr. Arjun Garg, AOR Mr. Aakash Nandolia, Adv. Ms. Sagun Srivastava, Adv. Ms. Kriti Gupta, Adv. Mr. Arvind Kumar Sharma, AOR Mr. Raj Bahadur Yadav, AOR Ms. Usha Nandini V., AOR Mr. Biju P. Raman, Adv. Mr. John Thomas Arakal, Adv. Mr. Gautam Narayan, AOR Ms. Asmita Singh, Adv. Mr. Anirudh Anand, Adv. Mr. Tushar Nair, Adv. Mr. Vikramjit Banerji, A.S.G. Mr. Arijit Prasad, Sr. Adv. Mrs. Nisha Bagchi, Adv. Mr. Mukesh Kumar Maroria, AOR Mr. Shubhendu Anand, Adv. Mr. Meru Sagar Samantaray, Adv. Mr. Annirudh Sharma Ii, Adv. Mr. G. S. Makker, Adv. Mr. Mukunda Rao Angara , AOR Ms. Rohini Musa, AOR Mr. B. Krishna Prasad, AOR Mr. Raghvendra Kumar, AOR Mr. Anand Kumar Dubey, Adv. Mr. Nishant Verma, Adv. Mr. Simanta Kumar, Adv. Mr. Maneesh Pathak, Adv. Ms. Harsha Sharma, Adv. Mr. Devvrat Singh, Adv. Mr. Jainendra Kumar, Adv. Mr. Varun Singh, Adv. Mr. Sameer Abhyankar, AOR Mr. Kushagra Aman, Adv. Mr. Aakash Thakur, Adv. Mr. Rahul Kumar, Adv. Ms. Ayushi Bansal, Adv. M/S. Arputham Aruna And Co, AOR Mr. C. K. Sasi, AOR Ms. Meena K Poulose, Adv. Ms. Anupriya, Adv.

JUDGMENT

Leave granted in SLP (Civil) No.21584 of 2012.

2. These appeals are filed by the assessees against the judgments of the High Courts of Sikkim and Kerala dated 03.07.2010 and 19.08.2011 respectively.

3. In K. Arumugam vs. Union of India, C.A. No. 2842-2848 of 2012, the facts are that the appellant is registered with the Directorate of State Lotteries in Thiruvananthapuram and has purchased Kerala State Lotteries from the District Lottery Offices and other States' lotteries in bulk from registered promoters at a discounted rate. The appellant contends that this purchase was made on an outright sale basis, meaning, they bought all tickets in bulk with no return policy ("all sold basis") and subsequently sold them to retailers, also on an outright sale basis. A profit was made from the difference between the amount received from retailers and the amount paid to the State Government or registered promoters. The sale of lotteries in Kerala was regulated by the Kerala State Lotteries and Online Lotteries (Regulation) Rules, 2003 framed under Section 12(3) of the Lotteries Regulation Act, 1998 and the Kerala Tax on Paper Lotteries Act, 2005.

3.1 Appellant was directed by the Superinte


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