SUPREME COURT OF INDIA

Imagic Creative (P.) Ltd. v. Commissioner of Commercial Taxes

S.B. SINHA AND HARJIT SINGH BEDI, JJ.

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CIVIL APPEAL NO. 252 OF 2008

JANUARY 9, 2008

RELEVANT PARAGRAPHS

27. The Court, while interpreting a statute, must bear in mind that the legislature was supposed to know law and the legislation enacted is a reasonable one. The Court must also bear in mind that where the application of a Parliamentary and a Legislative Act comes up for consideration; endeavours shall be made to see that provisions of both the acts are made applicable.

28. Payments of service tax as also the VAT are mutually exclusive. Therefore, they should be held to be applicable having regard to the respective parameters of service tax and the sales tax as envisaged in a composite contract as contradistinguished from an indivisible contract. It may consist of different elements providing for attracting different nature of levy. It is, therefore, difficult to hold that in a case of this nature, sales tax would be payable on the value of the entire contract; irrespective of the element of service provided. The approach of the assessing authority, to us, thus, appears to be correct.

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0 responses to “Payments of service tax as also VAT are mutually exclusive”

  1. Anand Patole (Pune) says:

    co.purchase 1 software sales person send bill with amc charges + 12.36% tax(40000+10000=50000*12.36%)56180 bill amount is it right? software applicable vat @5% & AMC Charges Applicble Service Tax I Mean 40000*5%Vat & 10000*12.36% it is Right Or Not Please repply

  2. AMIT SANTHALIA says:

    WHY SHOPS LIKE DOMINOS ARE CHARGING BOTH SERVICE TAX & vat in same product . plz reply via mail

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