1992 (1) TMI 312 - SC - VAT and Sales Tax

Levying Central sales tax in respect of certain transactions of the petitioners is challenged - Held that - Considering petitioner submission that while they have paid a high rate of local sales tax they are being called upon to pay Central sales tax on the very same transactions and that this is causing great hardship to the petitioners we therefore direct the respondents that they should not take any steps to recover the amount of Central sales tax payable by the petitioners on the transactions in respect of which they have already paid sales tax in other States as intra-State sales. This stay will continue till the Sales Tax Appellate Tribunal disposes of the appeal of the petitioners which is now pending before it.

Summary

The Supreme Court dismissed a writ petition challenging the assessment order of the Commercial Tax Officer, Hyderabad, regarding Central sales tax. The petitioners were directed not to pay Central sales tax on transactions for which they had already paid local sales tax in other states. The Sales Tax Appellate Tribunal was directed to expedite the appeal process within three months. The first appellate authority was instructed to await the Tribunal's decision and then dispose of the appeals within one month. The petitioners were permitted to seek refunds of local sales tax if ultimately found liable for Central sales tax. The writ petition was dismissed with no costs.