9911796707
TMI Blog1965 (7) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... 58. The notification was published in the Kerala Gazette dated 30th September, 1958. 3.. Section 6 of the General Sales Tax Act, 1125, deals with the power of the Government to notify exemption and reduction of tax, and reads as follows: (1) Government may by notification in the Gazette, make an exemption, or reduction in rate, in respect of any tax payable under this Act- (i) on the sale of any specified class of goods at all points or at any specified point or points in the series of sales by successive dealers; or (ii) by any specified class of persons in regard to the whole or any part of their turnover. (2) Any exemption from tax, or reduction in the rate of tax notified under sub-section (1)- (a) may extend to the whole of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Tax (Second Amendment) Act, 1958, substituted a new section for the old section 9 in the Central Sales Tax Act, 1956. Sub-section (1) of the substituted section 9 (omitting the proviso thereto) reads as follows: "The tax payable by any dealer under this Act on sales of goods effected by him in the course of inter-State trade or commerce [whether such sales fall within clause (a) or clause (b) of section 3] shall be levied and collected by the Government of India in the manner provided in sub-section (3) in the State from which the movement of the goods commenced:"; and sub-section (3) of that section (omitting the proviso thereto): "The authorities for the time being empowered to assess, collect and enforce payment of any tax under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les tax law of the State is assessed, paid and collected; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, appeals, reviews, revisions, references, penalties and compounding of offences, shall apply accordingly. (3) The proceeds (reduced by the cost of collection) in any financial year of any tax levied and collected under this Act in any State on behalf of the Government of India shall, except in so far as those proceeds represent proceeds attributable to Union territories, be assigned to that State and shall be retained by it; and the proceeds attributable to Union territories shall form part o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that section 8(1) does not apply to the facts of the case, but the proviso is important as it indicates that in some cases falling within the proviso the rate may be nil. In other words, notwithstanding section 6, the dealer may not be liable to pay any tax if he comes within the proviso to section 8(1). It follows that the scheme of the Act is not that every transaction in inter-State trade must bear some tax. Section 8(2) provides for the method of calculating the tax; under that sub-section, the tax shall be calculated at the same rates and in the same manner as would have been done if the sale had, in fact, taken place inside the appropriate State. The expression 'in the manner' may give rise to two conflicting views, namely, (i) it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Act refers to the expression 'levied' in section 5(3)(a) of the State Act. There is no reason why the Central Act made a departure in the manner of levy of tax on the specified goods which are taxed only at a single point under the State Act; if any such radical departure was intended, the Central Act would have expressly stated so. The Central Act was passed to levy and collect sales tax on inter-State sales to avoid confusion and conflict of jurisdictions; the tax is also collected only for the benefit of the States. Therefore, the construction we accept avoids the anomaly of the State collecting tax on powerloom textiles only at a single point and the Centre, through the agency of the State authorities, collecting the said tax for a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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