9911796707
TMI Blog1962 (4) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... s covered by C forms. A notice issued by the assessing authority to the petitioners proposing assessment at 1% on the turnover covered by C forms and at 2% on the balance of the turnover, elicited a reply from them that as the purchase value of cotton had been assessed under the Andhra Pradesh General Sales Tax Act, 1957 (hereinafter referred to as the "State Act "), their turnover of sales should not be assessed under the Central Act. The assessee's contention was negatived on the ground that the transactions in question were liable to tax under the State Act as he was the first purchaser in the State add that the sales effected by him to dealers outside the State were liable to the levy of tax under the Central Act as they were transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e shall, in so far as it imposes, or authorises the imposition of, a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce, be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify." The Central Sales Tax Act is enacted by Parliament with a view to formulate principles for determining when a sale or purchase of goods takes place in the course of inter-State trade or commerce or outside a State or in the course of import into or export from India, to provide for the levy, collection and distribution of taxes on sales of goods in the course of inter-State trade or commerce, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of import or export. Section 6 is the charging section. It is in the following terms: "6. Liability to tax on inter-State sales.-(1) Subject to the other provisions contained in this Act, every dealer shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, not being earlier than thirty days from the date of such notification, be liable to pay tax under this Act on all sales effected by him in the course of inter-State trade or commerce during any year on and from the date so notified. (2) Notwithstanding anything contained in sub-section (1), where a sale in the course of inter-State trade or commerce of goods of the description referred to in sub-section (3) of section 8(a) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of making any such calculation any such dealer shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate State, notwithstanding that he, in fact, may not be so liable under that law." The scheme of taxation provided by section 8 envisages classification of goods into certain categories. Category (1) comprises declared goods, and category (2), of goods other than declared goods. The object of the classification is clearly to extend the benefit of a lower rate of tax in the case of declared goods, which are defined as meaning goods declared under section 14 to be of special importance in inter-State trade or commerce. If the goods are declared goods, then the tax of 1%, or the tax levied by the appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buyer for a price. There may be a contract of sale between one part owner and another. (2) A contract of sale may be absolute or conditional. (3) Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to the fulfilled, the contract is called an agreement to sell. (4) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred. " The definition of "sale" which is contained in the Central Act has already been extracted. In the Sale of Goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n succinctly summarised by their Lordships of the Supreme Court in Fernandez v. The State of Kerala[1957] 8 S.T.C. 561. as follows: "It is no doubt true that in construing fiscal statutes and in determining the liability of a subject to tax one must have regard to the strict letter of the law and not merely to the spirit of the statute or the substance of the law. If the Revenue satisfies the Court that the case falls strictly within the provisions of the law, the subject can be taxed. If, on the other hand, the case is not covered within the four corners of the provisions of the taxing statute, no tax can be imposed by inference or by analogy or by trying to probe into the intentions of the legislature and by considering what was the subst ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
