Case Law Details
Indusind Bank Limited Vs Department Of Trade & Taxes (Delhi High Court)
Explore the Delhi High Court case: Indusind Bank vs. Dept. of Trade & Taxes. Constitutional validity of DVAT Act’s ‘dealer’ definition challenged. Court analysis and decision detailed.
The case of Indusind Bank Limited vs. Department of Trade & Taxes before the Delhi High Court revolves around the constitutional validity of the definition of the term ‘dealer’ under the Delhi Value Added Tax Act, 2004 (DVAT Act). The petitioner, a scheduled bank, challenges the explanation to Sub-clause (vii) of Clause (j) of Section 2(1) of the DVAT Act, which includes any entity engaged in the sale of goods such as re-possessed vehicles. The petitioner contests the imposition of Value Added Tax (VAT) on the sale of re-possessed vehicles, asserting that it does not involve value addition.
Key Arguments and Contentions
i. Challenge to Constitutional Validity: The petitioner challenges the constitutional validity of the expansive definition of the term ‘dealer,’ contending that it goes against the object of the DVAT Act. The petitioner also argues that the definition is ultra vires Article 265 of the Constitution, which states that no tax shall be levied without the authority of law.
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