Supreme Court calls UP tax sop for cement companies like Jaiprakash Associates, Birla Corporation discriminatory

Oct 21 2013, 13:42 IST
Comments 0
Supreme Court of India (AP) Supreme Court of India (AP)
SummaryDevelopment in Supreme Court will have significant tax implications on cement comapnies...

has reduced the tax liability of the dealer by 50% on goods having fly-ash contents exceeding 30% by weight.

The notification restricted the benefit of rebate only to the units manufacturing and producing cement using fly-ash in UP.

The cement industries sought quashing of the notification in the High Court, which held that the grant of rebate of tax by the state government discriminated between the imported goods and the goods manufactured in the state, restricting the free movement of goods and, therefore, impinges articles 301 and 304(a) of the Constitution of India.

Besides, the HC declared a portion of the notification as arbitrary and illegal that violated freedom of trade and commerce and restricted tax rebate to the districts in UP alone.

Single Page Format
Ads by Google

More from India

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...