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TMI Blog1986 (11) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... trade or commerce- (a) sells to the Government any goods; or (b) sells to a registered dealer other than the Government goods of the description referred to in sub-section (3); shall be liable to pay tax under this Act, which shall be four per cent of his turnover. 8.. (2A) Notwithstanding anything contained in sub-section (1A) of section 6 or sub-section (1) or clause (b) of sub-section (2) of this section, the tax payable under this Act by a dealer on his turnover in so far as the turnover or any part thereof relates to the sale of any goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate State, exempt from tax generally or subject to tax generally at a rate which is lower tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook place to an unregistered dealer. The challenge in this case by the petitioners is on the basis of observations of the Supreme Court in the case of B. Shama Rao v. Union Territory of Pondicherry [1967] 20 STC 215. What the petitioners say is that the Bengal Finance (Sales Tax) Act, 1941, could not be extended to Delhi as was done in 1951, and the tax imposed under the Sales Tax Act of 1941. It is urged that on the reasoning given by the Supreme Court in B. Shama Rao v. Union Territory of Pondicherry [1967] 20 STC 215, the extension of the aforesaid Act to Delhi is bad. This contention is not available to the petitioners in view of the judgment of the Supreme Court in In re Delhi Laws Act [1951] SCR 747. As regards the contention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a legislative policy, it is not possible to hold that there has been delegation of essential legislative functions. In [1975] 35 STC the Supreme Court observed at page 8 as under: "All that is necessary now to add is that the rate applicable merely mean the rate applicable at the relevant point of time and not the rate applicable when section 8(2)(a) was enacted. The whole scheme of the Central Sales Tax Act is to adopt the machinery of the law relating to Sales Tax Acts of the various States, in cases where those States happen to be the appropriate States as also the rates prescribed by those Acts. " The observations of the Supreme Court with regard to section 8(2)(b) apply equally to the provisions of section 8(2A). The legislative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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