Gujarat govt will suffer a loss of Rs 2,316 crore annually; move follows Centre's decision that reduced excise duty on fuel by Rs 2 per litre
The move comes after three other states, Maharashtra, Gujarat and Himachal Pradesh, cut Value Added Tax (VAT) to bring down fuel prices.
Petition claims many eateries in Delhi charge VAT on entire bill, not on portion deemed as 'service' under Service Tax Rules
The Supreme Court has stated that if the interpretation of a notification on value-added tax leads to an absurdity, it should be avoided. The court stated so in its judgment, State of Jharkhand vs Tata Steel Ltd, where the company demanded benefits under the Jharkhand Value Added Tax Act. The company's unit was originally in Bihar but after the bifurcation of the state, it fell into the new state of Jharkhand. While the Bihar government had granted certain sales tax benefits as incentives for the company to invest in the state under the industrial policy, the Jharkhand government passed the VAT Act and notifications, which affected the benefits granted originally. It led to multiple litigation, mainly on the issue whether a dealer enjoying the benefit of tax exemption is allowed to convert the facility from payment of tax into the facility of deferment. The company sought 13 years for repayment from the time of grant of benefit. The court stated that "such interpretation not only cause