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Sodexo meal vouchers are utility goods- Octroi & LBT can be levied
Case Law Details
- Case Name
- Sodexo SVC India Private Limited. Vs The State of Maharashtra and Others (Bombay High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Bombay High Court
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The Petitioner Company is conducting a business of providing preprinted Sodexo Meal Vouchers (For short “the said Vouchers”). The case made out in the Petitions is that the Petitioner Company enters into a contract with its customers for issuing the said vouchers. The customers of the Petitioner in turn distribute the said vouchers to their employees who are the actual users of the said vouchers. It is stated that the Petitioner Company has contracts with various affiliat...
What is conclusion?
One aspect that is not clear in the judgement is – what is the value to be taken for the purpose of payment of Octroi/LBT? Whether it is printing cost of the vouchers or Value of the materials that can be purchased on the strength of vouchers?
For ex., the printing cost of a booklet can be Rs.50/- Then Octroi/LBT is payable on this value. The value of vouchers in the booklet may be Rs.3,000/- which enables the employee to buy meals/goods worth Rs.3,000/-. Octroi/LBT is not payable on this amount. The reason being the vendor say for ex., a Hotel or a departmental stores is already paying Octroi/LBT on the goods brought into the local limits by him. Then, if Octroi/LBT is charged again on Rs.3,000/-, then it amounts to double taxation.
The above aspect is not clear. Request our readers to throw light on the above issue.
So does it mean that the user will have bear the tax for this octroi/LBT? i.e. does the user has to pay more for the food/item he is buying using the coupons? Or it will not have any effect to the user’s payment calculation?