Full Judgment Text
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CASE NO.:
Special Leave Petition (civil) 3797 of 2001
PETITIONER:
UNION OF INDIA AND ANR.
RESPONDENT:
OM PRAKASH S.S. AND COMPANY AND ANR.
DATE OF JUDGMENT: 19/02/2000
BENCH:
B.N. KIRPAL & MRS. RUMA PAL
JUDGMENT:
JUDGMENT
2001 (1) SCR 1113
The following Order of the Court was delivered :
It is quite evident that Section 206-C of the Income Tax Act, 1961 refers
to a case where by reason of the payment to the seller the producer gets
specific goods mentioned in the Table to the said Section of gets a right
to collect or receive those goods by virtue of that payment. In the instant
case, when the Government issues a licence, it only enables the licensee to
carry trade or business in that item. The payment made by the licensee by
way of licence fee does not ipso facto entitle the licensee to left the
goods. For obtaining the goods mentioned in the Table, the licensee has to
place an order on the manufacturer or the supplier of the said goods and it
is at that point of time that Section 206-C would get attracted.
The reliance placed on the explanation to sub-section (11) of Section 206-C
is misplaced as is evident from what is stated herein above. "Buyer" would
mean where a person by virtue of the payment gets a right to receive
specific goods and not where he is merely allowed/permitted to carry on
business in that trade. It is for this reason that we had earlier dismissed
the special leave petitions and any observations of the High Court not in
consonance with this may be not strictly correct but the fact remains that
on licences issued by the Government permitting the licensee to carry on
liquor trade the provisions of Section 206-C are not attracted as the
licensee does not fall within the concept of ’buyer’ referred to in that
Section. Buyer has to be buyer of goods and not merely a person who
acquires a licence to carry on the business.
Hence the Special leave Petition is dismissed.