9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1988 (3) TMI 411 - HC - VAT and Sales Tax
Issues:
Computation of liability to tax under section 8(2)(a) of the Central Sales Tax Act for inter-State sales of rice without declarations in form C. Analysis: The case involved a tax revision petition challenging an order by the Sales Tax Appellate Tribunal regarding the assessment of tax on inter-State sales of rice without proper declarations in form C. The petitioner, a registered dealer trading in paddy and rice, was initially taxed at 4% by the assessing authority, but the Deputy Commissioner revised it to 8%. The key question was the method of computing tax liability under section 8(2)(a) of the Central Sales Tax Act for such sales. Under the Central Sales Tax Act, inter-State sales are subject to tax, with a concessional rate of 4% for sales to registered dealers if supported by form C declarations. In the absence of such declarations, section 8(2) imposes a penal rate, which is twice the rate applicable to sales inside the State. Paddy and rice are declared goods, and the State law provides for tax reduction on rice if tax was levied on the paddy. The Andhra Pradesh General Sales Tax Act also specifies tax points for paddy and rice sales, with provisions for tax reimbursement in case of inter-State sales. The Court clarified that the rate mentioned in section 8(2)(a) refers to the applicable tax rate, not the final amount levied. Thus, the turnover of rice without form C declarations was correctly taxed at 8%, double the 4% rate for sales inside Andhra Pradesh. The Court rejected the petitioner's argument that "rate" should be interpreted as the final payable tax amount, citing a lack of support from precedent. In conclusion, the Tribunal's decision upholding the Deputy Commissioner's tax assessment was deemed appropriate, dismissing the tax revision petition without costs. The judgment reaffirmed the correct interpretation of the tax liability calculation under the Central Sales Tax Act for inter-State sales of declared goods like rice without requisite declarations.
|
