Searching Case Laws & Precedent on Legal Query!
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References:- ["2025 0 Supreme(Ker) 535"]- ["2020 0 Supreme(Del) 1137"]- ["2023 Supreme(SRI)(CA) 568"]- ["1967 Supreme(Online)(AP) 9"]- ["2025 Supreme(Online)(Mad) 73775"]- ["2001 0 Supreme(AP) 688"]- ["2011 0 Supreme(Kar) 254"]- ["2024 Supreme(US)(scotus) 15046"]- ["2017 0 Supreme(Chh) 221"]- ["KARNATAKA BANK LTD. vs STATE OF A.P. . - Supreme Court"]- ["1964 0 Supreme(Mad) 444"]- ["2024 0 Supreme(Ker) 861"]- ["1962 Supreme(Online)(AP) 26"]
What is the definition of the word 'tax' as per the Constitution and ? This question lies at the heart of India's fiscal framework. The meticulously delineates taxation powers between the Union and States, while the has shaped these through landmark judgments. Understanding this is crucial for businesses, taxpayers, and legal professionals navigating tax laws.
Taxation isn't just revenue collection; it's balanced against fundamental rights like trade freedom (Articles 301-304) and equality (). This post breaks down the constitutional definition, key SC decisions, and distinctions from fees, drawing from authoritative sources. Note: This is general information, not legal advice. Consult a professional for specific cases.
provides a broad definition: 'tax' means a tax levied by or under any law of the Union or of a State. This wide scope applies constitutionally but adapts to legislative lists in the Seventh Schedule. The definition of tax in terms of Clause (28) of Article 366 of the Constitution is wide in nature. The said definition may be for the purpose of the Constitution; but it must be borne in mind that the conferred upon the State Legislature or Parliament to impose tax or fee having been enumerated in different entries in the three lists contained in the Seventh Schedule of the Constitution of India, the same meaning of the expression tax unless the context otherwise requires should be assigned. 2018 0 Supreme(All) 1515
This ensures taxes align with Entries like 62 (entertainments tax, State List) or 97 (Union residual powers). mandates: No tax shall be levied or collected except by . Taxes must respect . 1961 0 Supreme(SC) 186
The has clarified that tax laws aren't immune to constitutional scrutiny, especially under Part XIII (trade freedom).
Here, the Court ruled tax laws fall under . Taxation laws are not excluded from the operation of . They must comply with : public interest, reasonableness, and . Implication: Taxes restricting trade need safeguards. 1961 0 Supreme(SC) 186
Only trade restrictions trigger . Taxes on goods movement must meet . Restrictions on trade via taxation must be reasonable and in public interest, with prior . 1961 0 Supreme(SC) 186
Re-examined . A tax is compensatory if linked to facilities provided. The Court clarified the criteria for determining whether a tax is compensatory, emphasizing that the link between tax and facilities must be substantial. 2008 0 Supreme(Jhk) 594
Other cases like Suraj Mall Mohta (1955) struck discriminatory provisions under : Laws that discriminate without rational basis violate . 1961 0 Supreme(SC) 186
SC repeatedly distinguishes taxes (no ) from fees (service-linked). There is no scope of implied authority for imposition of a fee. The fee must be authorised by the statute. 2010 0 Supreme(Bom) 719
In LIC policy assignments, a Rs. 250 charge was : Charge imposed without . 2010 0 Supreme(Bom) 719
States can't encroach Union domains. In amusement parks, service tax under encroached Entry 62 (State): State prevails over Union taxation on amusement activities per Entries 62 and 97. applied. 2025 0 Supreme(Ker) 3137
Motor vehicles tax excludes off-road machinery: Heavy Earth Moving Machinery... do not qualify as 'motor vehicles' under the . inapplicable. 2026 0 Supreme(SC) 48
Excise on alcoholic preparations: Repeal/re-enactment via Section 8 preserved sales tax exemptions. 1965 0 Supreme(P&H) 36
Advertisement fees during elections: Exempt under municipal acts but require permission; fees akin to tax struck down. 2018 0 Supreme(All) 1515
Route extension fees: No power without . The authority cannot levy fees over and above tax without . 2005 0 Supreme(All) 1927
Administrative charges in molasses: Not includible in assessable value as passed to government. 2004 0 Supreme(SC) 268
These ensure taxes serve public interest without arbitrary burdens.
The Constitution defines 'tax' broadly under , but SC interprets it through federalism, rights protection, and for fees. Landmark rulings like Atiabari and Jindal emphasize scrutiny. 2008 0 Supreme(Jhk) 594 1961 0 Supreme(SC) 186
Key Takeaways:- Taxes must have legislative backing ().- Trade-impacting taxes comply with Articles 301-304.- Fees ≠ Taxes; need service link.- Context-specific competence via Seventh Schedule.
Stay informed on evolving tax laws. For tailored advice, reach out to legal experts.
References:- Jindal Stainless Ltd. v. State of Haryana 2008 0 Supreme(Jhk) 594- Early decisions (Suraj Mall, etc.) 1961 0 Supreme(SC) 186- Discrimination principles 1961 0 Supreme(Cal) 76
#TaxLawIndia, #IndianConstitution, #SupremeCourtRulings
assigned to the same word/concept by the Supreme Court in the context of its setting under the Constitution. ... sense, was rejected by the Supreme Court. ... We are of the view that when a word/concept in the Constitution has been interpreted by the Supreme Court in a particular manner, a legislative body, that derives its legislative competence to enact a Statute from the Constitution, cannot gi....
(supra), where the Supreme Court held that it is settled law that the word 'include' is generally known as a word of extension and it seeks to enlarge the meaning of the word and phrases occurring in the body of the statute. ... In the said case, a question arose relating to levy of property tax on mobile towers. The issue before the Court was whether, for the purpose of levy of property tax, mobile towers are akin to 'lands and buildings' as #HL_STA....
As per Article 125 of the Constitution, the Supreme Court has the sole and exclusive jurisdiction to determine any matter related to the interpretation of the Constitution. ... Concluding remarks The Constitution is the supreme law of the land and as per Article 3 of the Constitution, sovereignty lies in the people and is inalienable. ... The rest of the definition after the word "and includes" ....
The first is whether the levy of octroi per se is an infringement of freedom of trade and commerce conferred by Art.301 and secondly, if it is an infringement of such freedom of trade and commerce, is the tax reasonable and required in public interest as required by Art.304 (b) of the Constitution. ... No provision of the Hyderabad District Municipalities Act was pointed out, which indicates that there was some departure from the earlier Act in so far as the definition of the word 'food' is concerned. .....
Importantly, Supreme Court in BSNL and Another Vs. Union of India and Others has found that splitting and dissecting of contract is permissible even pursuant to 46th amendment to Constitution only in Article 366 (29A) (b) and (f) of the Constitution. ... In this regard it may be relevant to refer to the judgement of Supreme Court in the case of Builders Association reported in a href="./.. ... By introducing separate categories of “deemed sales”, the meaning of the word#HL....
The Supreme court in Naresh v. ... The Supreme court in Gannon Drunkenly and Co. v. ... As pointed out supra, the supreme Court in the case of Gannon drunkenly and Co. v. ... become necessary for the court to declare by writ of mandamus that the Explanation to the definition of the word "person" and the Explanation No. l to the first Schedule of the Act as unconstitutional. ... The Court would be free to satisfy it....
It is also the main crux of the argument that in Karnataka Bank’s case, the Supreme Court has not considered whether the word ‘person’ which is defined in the General Clauses Act is referable to a branch of business entity. ... The Supreme Court also in Karnataka Bank’s case has not stated anything other than what was competent for the Andhra Pradesh Legislature to define the word ‘person’ in any manner they like within the State of Andhra Pradesh. ... As per the #HL_....
day, per individual. ... Applying the doctrine of pith and substance, as held by the Supreme Court, it has to be noticed with reference to the provisions of the Entertainments Tax Act, as a whole, that the State legislation provides for imposing tax on the entertainment/amusement, for which the entertainee is admitted. ... In the first case – Federation of Hotel & Restaurant (supra – the Apex Court was considering the challenge raised against the constitutional validity of the Expendi....
Subsequently, on 09.11.2006, the Regional Transport Officer issued a show cause notice demanding a sum of Rs.59,39,401/- towards registration fee, tax, arrears of tax along with 2 per cent interest and 25 per cent penalty with effect from the year 1999 when aforesaid vehicles/equipment were purchased ... It may be pertinent to note that Entry 57 of List II of the Seventh Schedule of the Constitution permits imposition of tax on vehicles suitable for use on roads. ... In the light of th....
However as has been held by a Division Bench of this Court on a reference by the Financial Commissioner in Standard Drugs Court. V/s. ... Prior to the enforcement of the Constitution on 26th of January, 1950, under clause (c) of subs (6) of S. 3 of the Punjab Excise Act "any medicinal or toilet preparations containing alcohol fell within the definition of "excisable articles" which were subject to the excise duty under the aforesaid Act ... Under the Constitution alcoholic preparation, which under the G....
The definition of “tax” in terms of Clause (28) of Article 366 of the Constitution is wide in nature. The said definition may be for the purpose of the Constitution; but it must be borne in mind that the legislative competence conferred upon the State Legislature or Parliament to impose “tax” or “fee” having been enumerated in different entries in the three lists contained in the Seventh Schedule of the Constitution of India, the same meaning of the expression “tax” unless the context otherwise requires should be assigned.
The definition of 'tax' in terms of clause (28) of Article 366 of the Constitution is wide in nature. The said definition may be for the purpose of the Constitution, but it must be borne in mind that the legislative competence conferred upon the State Legislature or Parliament to impose 'tax' or 'fee' having been enumerated in different entries in the three lists contained in the Seventh Schedule of the Constitution of India, the same meaning of the expression 'tax' unless the context otherwise requires, should be assigned.
The said definition may be for the purpose of the Constitution; but it must be borne in mind that the legislative competence conferred upon the State Legislature or Parliament to impose "tax" or "fee" having been enumerated in different entries in the three lists contained in the seventh Schedule of the Constitution of India, the same meaning of the expression "tax" unless the context otherwise requires should be assigned. The definition of "tax" in terms of Clause (28) of Article 366 of the constitution is wide in nature.
In AIR1971 SC 517 , [1971 ]81 ITR105 (SC ), (1970 )2 SCC467 , [1971 ]1 SCR844 (Bimal Chandra Banerjee v. State of Madhya Pradesh etc.) it has been held that no tax can be imposed by any bye-law or rule or regulation unless the statute, under which the subordinate legislation is made, specially authorises the imposition even if it is assumed that the power to tax can be delegated to the executive. Expression of "law" is given under Article 13 therein. Numerous decision of the Supreme Court and High courts expressed clear opinion that a tax within the tax under Article 265 of the Con....
The definition of `tax in terms of Clause (28) of Article 366 of the Constitution is wide in nature. The said definition may be for the purpose of the Constitution; but it must be borne in mind that the legislative competence conferred upon the State Legislature or the Parliament to impose `tax or `fee having been enumerated in different entries in the three lists contained in the Seventh Schedule of the Constitution of India, the same meaning of the expression "tax" unless the context otherwise requires, should be assigned.
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