Case Law Details
Commissioner of Trade & Taxes Vs Schneider Electric India Pvt. Ltd. (Delhi High Court)
1. The facts and the question of law are common in these appeals, the leading case is that of M/s Schneider India Electric Pvt. Ltd. (hereafter referred as the “assessee” or “Schneider”). The following question of law was framed for these appeals:
“Did the VAT Tribunal fall into error in upholding the refusal of the Revenue‘s claim for exemption under Rule 11 for sales made to distribution companies (DISCOMS) for the period prior to 2003-04 (prior to 11.03.2004), in the circumstances of the case?”
2. The assessee is engaged in the business of selling various electrical equipments used in the generation and distribution of electricity. It is a registered dealer in the National Capital Territory of Delhi (NCT) with a registration TIN No. 07920179319. For 2003-04 and 2004-05 (hereinafter referred to as “the relevant period”), Schneider sold electrical equipments to various undertakings such as M/s North Delhi Power Ltd. (NDPL), M/s BSES Yamuna Power Ltd. (BSESY), M/s BSES Rajdhani Power Ltd. (“BSESR”), M/s Delhi Transco Ltd.etc. (“Transco”- all collectively referred as “DlSCOMs”) which are engaged in the generation/ distribution of electricity in Delhi.
3. During the relevant period the Delhi Sales Tax Act, 1975 (“the DST Act”) provided for the levy of tax on sale and purchase of goods in Delhi. Section 4(1) of the Act provides the rate at which sales tax was levied on the ―taxable turnover” of different types of goods. Section 4(2) of the Act defines the term ―taxable turnover” of a dealer as the portion of the total turnover which remains after deducting, inter-alia, such sales as are exempt from payment of tax under Section 66 or as may be prescribed. Rule 11 of the Delhi Sales Tax Rules, 1975 (“the DST Rules”) prescribes the list of such other sales which may be deducted from the turnover by a dealer to arrive at taxable turnover.
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