1992 (12) TMI 214 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of notifications regarding sales tax rates on inter-State sale of pulses under the Central Sales Tax Act.

Detailed Analysis:

Issue 1: Notification Interpretation
The case involved a dispute over the applicability of sales tax rates on inter-State sale of pulses under the Central Sales Tax Act. The petitioner argued that the notification dated March 9, 1970, prescribing a tax rate of 1%, was revived due to subsequent notifications being rescinded. However, the Sales Tax Tribunal held that the March 9, 1970 notification was not automatically revived without specific provisions to that effect, citing previous judgments in similar cases.

Issue 2: Legal Precedents
The petitioner relied on judgments from the State of Orissa and the Karnataka High Court to argue that the General Clauses Act did not apply in this case, and previous notifications were revived upon rescission. However, the court referenced its own judgments and upheld the principle that superseded notifications are not automatically revived without express provisions to that effect.

Issue 3: Application of Tax Laws
The court also referred to the Supreme Court's decision in International Cotton Corporation case, stating that subsequent amendments in the Schedule of the Rajasthan Sales Tax Act apply to the Central Sales Tax Act. It emphasized that the prevailing law at the relevant time in the State must be considered for determining tax liabilities under the Central Sales Tax Act.

Conclusion:
Ultimately, the court dismissed the revision petition, ruling in favor of the tax authorities. It held that the petitioner was liable to pay tax on inter-State sale of pulses at the rate of 2%, along with interest, based on the applicable notifications and legal precedents. The court emphasized that rescinding a notification does not automatically revive previous notifications, and the petitioner's arguments lacked merit based on established legal principles.