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M/S. Tata Motors Ltd. v. The Deputy Commissioner of Commercial Taxes(Spl)

Civil Appeal · 2019 INSC 134Decided 5 Feb 2019
Civil Appeal No. 1822 of 2007
Justice L. Nageswara Rao · Justice Sanjay Kishan Kaul

Background

This is a referral order, not a final judgment. The question was whether sales tax is payable when a dealer replaces spare parts free of charge under warranty and receives a credit note from the manufacturer.

Decision Breakdown

This is a referral order, not a final judgment. The Court had reservations about its earlier decision in Mohd. Ekram Khan & Sons v. Commissioner of Trade Tax and held that the issue needs to be examined by a larger bench. It directed that the papers be placed before the Chief Justice. The appeals were not decided.

Lesson Learnt

There is no final ruling yet. Whether warranty replacements attract sales tax was left to a larger bench.

Official source (sci.gov.in)View Judgment (PDF)

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