Taara Steel V. The State Of Barara Case

Taxation Assignment 1

CASE ANALYSIS:
The Tata Iron & Steel Co. Ltd.
V/s
The State of Bihar
AIR 1958 SC 452 B
Subject of the case: Sales Tax/ VAT

Submitted by: Ameya Foujdar
PRN: 14010122023
3 Year LLB Course: 2nd Year Student
Submitted to: Prof. Rupal Rautdesai/ Prof. Vivek Kulkarni
Symbiosis Law School
Symbiosis International University
Contents
Introduction 2
Sales Tax in General 3
Issues 3
Rules Applicable 3
Analysis 4
Conclusion 7
References 7

Introduction
The appellant is a company incorporated under the Indian companies Act. This is a case involving the imposition of sales tax under the Bihar sales Tax act, 1947 . A return was filed by the appellant company claiming certain deduction which was rejected by the taxation authorities. The authorities disallowing the deduction claims calculated the sales tax realized by the appellant from its purchasers and added it to the company’s taxable income. The appeal was against the imposition of such tax contending that legislature could only make law imposing tax on concluded sales only and levy of tax by reason of amendment to section 4 (1) retrospectively makes it direct tax on the dealer, thus completely changing the character of tax. The appellant further contended a few issues like the tax levied on the company was as a seller and not as a manufacturer or producer, tax was on goods and not on sales proceeds, collection of sales tax by registered dealer did not take away primary liability of seller to pay sales tax and