1971 (9) TMI 174 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether tax on declared goods can only be levied under the Central Sales Tax Act and not under the State Sales Tax Act.

Analysis:
The case involved a revision under section 22(1) of the Andhra Pradesh General Sales Tax Act, 1957. The respondent was assessed for the assessment year 1965-66 under the Sales Tax Act, including a turnover of groundnuts sold to non-resident dealers in the course of inter-State trade. The respondent disputed the assessment, leading to appeals before the Assistant Commissioner and the Sales Tax Appellate Tribunal. The Tribunal allowed the appeal, holding that tax on declared goods could only be levied under the Central Sales Tax Act, not the State Act. The main question was whether tax on declared goods could be levied under the Sales Tax Act.

The court analyzed section 15 of the Central Sales Tax Act, which imposes restrictions and conditions on the imposition of tax on declared goods by a State. It was noted that there was no bar to the levy of sales tax by a State on declared goods under the Central Sales Tax Act. The court then examined section 6 of the Sales Tax Act, which provides for the levy of sales tax on declared goods. Section 6 specified the rate and point of tax liability for declared goods, ensuring compliance with the conditions laid down in section 15 of the Central Sales Tax Act.

The court concluded that section 6 of the Sales Tax Act aligned with section 15 of the Central Sales Tax Act and did not go against it. The court held that tax could indeed be levied under the State Sales Tax Act on declared goods, including groundnuts. The Tribunal's conclusion that tax on declared goods could only be collected under the Central Sales Tax Act was deemed erroneous. Consequently, the court allowed the revision, emphasizing that tax could be levied under section 6 of the Sales Tax Act on declared goods. No costs were awarded, and a nominal fee was specified.