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TMI Blog1968 (8) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... ning the appeal unlike the provisions of the A.P.G.S.T. Act. The restriction imposed as a condition for entertaining the appeal has been challenged on two grounds: firstly, that section 9(3) of the Central Sales Tax Act does not incorporate by reference, all the provisions of the A.P.G.S.T. Act, and in particular, section 21(6) of that Act. but only incorporated the procedural provisions relating to filing of the appeals and, consequently, the Tribunal has no jurisdiction to insist on payment of tax as a precondition for entertaining the appeal; and secondly, that even if it is held that the restriction is valid and that the Tribunal can demand payment of tax before entertaining the appeal, that restriction is discriminatory, in that other States have no provision similar to this in their respective State Acts. Sri Upendralal Waghary has sought to apply by analogy the observations of their Lordships of the Supreme Court in Collector of Customs and Excise, Cochin v. M/s. A.S. Bava (Civil Appeals Nos. 2007 and 2008 of 1966 dated 27th July, 1967(1)), while dealing with the provisions of the Central Excises and Salt Act and of the Sea Customs Act of 1878. We may at the outset point o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me being empowered to assess, collect and enforce payment of any tax under the general sales tax law of the appropriate State not only to assess, collect and enforce payment of any tax including any penalty, payable by a dealer under the Central Sales Tax Act, on behalf of the Government of India and subject to any rules made under the Central Sales Tax Act in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is assessed, paid and collected, but also empowers them to exercise all or any of the powers they have under the general sales tax law of the State. It was further provided that the provisions of such law, including provisions relating to returns, appeals, reviews, revisions, references, penalties and compounding of offences shall apply accordingly. It is under this provision of the Central Sales Tax Act that the Appellate Tribunal is seeking to apply the provisions of sub-section (6) of section 21 of the A.P.G.S.T. Act dealing with appeals to the Appellate Tribunal. Section 21 of the A.P.G.S.T. Act deals with appeals to the Appellate Tribunal, and prescribes the procedure regulating the filing of an appeal. Sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court, observed: "The expression 'in the manner' may give rise to two conflicting views, namely (i) it is concerned only with the calculation of the tax, and (ii) it deals not only with the calculation of the rates but also the manner of levy of the tax. But section 9(1) dispels the ambiguity for it says that the tax payable by any dealer under the Central Act shall be levied and collected in the appropriate State by the Government of India in the manner provided in sub-section (2); and sub-section (2) of section 9 empowers the appropriate State authorities to assess, collect and enforce payment of any tax payable by any dealer under the Central Act in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is assessed, paid and collected......When section 9(1) says that under the Central Act tax shall be levied in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the State is assessed, paid and collected, it is reasonable to hold that the expression 'levied' in section 9(1) of the Central Act refers to the expression 'levied' in section 5(3)(a) of the State Act. There is no reason why ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions as it thinks necessary in the best interests of that State. Prior to the amendment of Article 269 of the Constitution, each State was trying to impose a tax on transactions which were inter-State transactions, by treating them as intra-State transactions. In order to avoid this confusion, Article 269 as well as List I of Schedule VII to the Constitution were amended by inserting sub-clause (3) in Article 269 and item 92-A in List I, for the purpose of empowering Parliament to enact legislation dealing with inter-State transactions and to formulate principles for determining when a sale or purchase of goods takes place in the course of inter-State trade or commerce. The object of these amendments was to make available the amounts collected under the provisions of the Central Sales Tax Act to the respective States. With that object in view, the Central Sales Tax Act was passed and as is evident, the States were authorised by virtue of the provisions in that Act not only to levy and collect sales tax under the Central Act but to appropriate the amounts so collected as State revenues. The purpose and the object of the Act itself would therefore show that it had given freedom fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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