1991 (9) TMI 320 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the petitioner-assessee's inter-State sales of steam coal are subject to tax under the Central Sales Tax Act, 1956 due to non-submission of required forms?
2. Whether the petitioner-assessee's plea regarding double taxation on the same goods is valid under sections 14 and 15 of the Central Sales Tax Act, 1956?

Analysis:

1. The petitioner-assessee's accounts for the assessment year 1976-77 revealed inter-State sales of steam coal without submitting returns under the Central Sales Tax Act, 1956. The sales, totaling Rs. 2,03,508.83, were considered second and subsequent inter-State sales falling under section 3(b) of the Act. As the assessee failed to furnish required certificates and forms, the sales were not exempt from tax under section 6(2) of the Act. The assessing authority, Appellate Assistant Commissioner, and Tamil Nadu Sales Tax Appellate Tribunal upheld the tax levy due to non-compliance with legal requirements, leading to the dismissal of the petitioner's appeal for exemption from tax on the inter-State sales.

2. The petitioner sought to argue that the steam coal had already been taxed at 3% by another entity in Madras and thus should not be subject to a second levy in Tamil Nadu, citing sections 14 and 15 of the Central Sales Tax Act, 1956. However, the plea was rejected based on the precedent set in Sri Rajeswari Company v. State of Tamil Nadu [1976] 38 STC 134, which clarified that while double taxation on declared goods by a State law is prohibited, the Central sales tax can be imposed more than once. Consequently, the exemption claimed by the petitioner for second inter-State sales was denied, and the tax levy was confirmed, resulting in the dismissal of the tax case without costs.