Supreme Court Quarterly Tax Digest 2023

Building Tax Act 1975 (Kerala); Explanation to Section 3(1) - 'Charitable purpose' not limited to 'free medical relief'- The Explanation goes to indicate that ‘charitable purposes’ includes and is, therefore, not confined to the relief of the poor and free medical relief. Consequently, the decision in SH Medical Centre Hospital vs State Of Kerala & Ors (2014) 11 SCC 381 to the extent of the interpretation which is placed on the Explanation to Section 3(1)(b) of the Kerala Building Tax Act 1975 does not correctly reflect the position in law which is clarified above. The decision in SH Medical Centre Hospital is, therefore, overruled to the above extent. (Para 10) Lisie Medical Institutes v. State of Kerala, 2023 LiveLaw (SC) 118Building Tax Act 1975 (Kerala); Explanation to Section 3(1) - Section 3(1)(b) provides that nothing in the Act shall apply to buildings which are used ‘principally’ for specific purposes, including among them, ‘charitable purposes’. The expression “principally” conveys the meaning of that which is the dominant purpose. The interpretation placed by the two-Judge Bench on the expression “principally used for charitable purposes” does not call for interference in view of the statutory language used in Section 3(1). Principal use refers to the dominant substantive use as distinguished from an ancillary use. (Para 9) Lisie Medical Institutes v. State of Kerala, 2023 LiveLaw (SC) 118Central Goods and Services Tax, 2017; Section 130 - Observing that it was "premature" on the part of the High Court to quash a show-cause notice issued under Section 130 of the Central Goods and Service Tax Act by invoking Article 226 jurisdiction, the Supreme Court set aside an order passed by the Punjab and Haryana High Court. State of Punjab v. Shiv Enterprises, 2023 LiveLaw (SC) 56'Charitable purpose' not limited to 'free medical relief': Supreme Court on Kerala Building Tax exemption; Overrules 2014 Judgment. Lisie Medical Institutes v. State of Kerala, 2023 LiveLaw (SC) 118Constitution of India, 1950; Article 14, 15, 21 - Income Tax Act, 1961; Section 10(26AAA) - The exclusion of Old Indian settlers, who have permanently settled in Sikkim prior to merger of Sikkim with India on 26.04.1975 from the definition of “Sikkimese” in Section 10(26AAA) is hereby held to be ultra vires to Article 14 of the Constitution of India and is hereby struck down. (Para 13- 17) Association of Old Settlers of Sikkim v. Union of India, 2023 LiveLaw (SC) 28Constitution of India, 1950; Article 14, 15, 21 - Income Tax Act, 1961; Section 10(26AAA) Proviso - Proviso to Section 10(26AAA) inasmuch as it excludes from the provision of exemption a Sikkimese woman merely because she marries a non-Sikkimese after 01.04.2008 is totally discriminatory and violative of Articles 14, 15 and 21 of the Constitution of India - A woman is not a chattel and has an identity of her own, and the mere factum of being married ought not to take away that identity. (Para 15-17.1) Association of Old Settlers of Sikkim v. Union of India, 2023 LiveLaw (SC) 28Constitution of India, 1950; Article 226 - Dismissal of a writ petition by a high court on the ground that the petitioner has not availed the alternative remedy without, however, examining whether an exceptional case has been made out for such entertainment would not be proper - Mere availability of an alternative remedy of appeal or revision, which the party invoking the jurisdiction of the high court under Article 226 has not pursued, would not oust the jurisdiction of the high court and render a writ petition “not maintainable" - Where the controversy is a purely legal one and it does not involve disputed questions of fact but only questions of law, then it should be decided by the high court instead of dismissing the writ petition on the ground of an alternative remedy being available. (Para 4-8) Godrej Sara Lee Ltd. v. Excise and Taxation Officer Cum Assessing Authority, 2023 LiveLaw (SC) 70 : AIR 2023 SC 781Constitution of India, 1950; Article 226 - It was premature for the High Court to opine anything on whether there was any evasion of the tax or not. The same was to be considered in an appropriate proceeding for which the notice under section 130 of the CGST Act was issued. Therefore, High Court has materially erred in entertaining the writ petition against the show cause notice and quashing and setting aside the same. State of Punjab v. Shiv Enterprises, 2023 LiveLaw (SC) 56Constitution of India, 1950; Article 226(2) - Tax has been levied by the Government of Goa in respect of a business that the petitioning company is carrying on within the territory of Goa- Such tax is payable by the petitioning company not in respect of carrying on of any business in the territory of Sikkim- Merely because the petitioning company has its office in Gangtok, Sikkim, the same by itself does not form an integral part of the cause of action authorizing the petitioning company to move the High Court. (Para 16)...

Supreme Court Quarterly Tax Digest 2023

LIVELAW NEWS NETWORK

Tags