Supreme Court

State of West Bengal and ors. v. Calcutta Club Limited

04.06.2016

Sales Tax/VAT

Larger bench to resolve dilemma over sales tax on club F&B

A Division Bench of Justices Dipak Misra and Shiva Kirti Singh referred to a larger Bench of the Supreme Court to decide if food and beverage sold by incorporated clubs to permanent members is liable to sales tax. Two earlier decisions of the court were deemed inadequate precedent on the issue, for not clarifying the applicability of the doctrine of mutuality. The Respondent-Club had contended that rather than sell food and beverage items to its members, it was merely an agent for the members and no consideration passed for the supply of such items.

Relevant

Section 2 Companies Act, 1956

Clause 29A Article 366 Constitution Act

Tags : sales tax club permanent members f&b

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