9911796707
TMI Blog1986 (7) TMI 384X X X X Extracts X X X X X X X X Extracts X X X X ..... e the State. The petitioners state that the inter-State turnover of coconut oil and cake is assessable only at one per cent of the sale price of the goods sold, on the basis of Notification SRO No. 117 of 1966 dated 8th March, 1966, promulgated by the Kerala Government under section 8(5) of the Central Sales Tax Act. It is their case that the inter-State sales turnover of coconut oil and cake are not exigible to tax under the Kerala Additional Sales Tax Act, 1978 (Act 20 of 1978). By that Act, the tax payable under the Kerala General Sales Tax Act, 1963, was increased by ten per cent of such tax from April, 1978, and by fifteen per cent from 13th June, 1983. The respondent in the original petition (the assessing authority) issued notice to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealer on his turnover relating to inter-State sales, shall be exempt from tax generally or subject to tax generally at a rate which is lower than 4 per cent similar to the provisions of or same as the sales tax law of the appropriate State. Counsel contended that the learned Judge was in error in ignoring the significance of section 8(2A), in holding that additional tax levied under Act 20 of 1978 has no application to the instant case. 3.. We are unable to accept this submission. In brief, the scheme for the levy of sales tax under the Central Sales Tax Act, 1956, relating to inter-State sales, seems to fall under five categories: (i) Inter-State sales by a dealer to the Government or to a registered dealer, of the description of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e State Government may, in public interest and subject to such conditions as may be specified by it, exempt any person from payment of tax regarding the inter-State sales, or levy a rate lower than that specified in section 8(1) or (2). [Section 8(5)]. Section 8(5) of the Central Sales Tax Act enables the State Government to either totally exempt from tax the inter-State sales or to levy a lower rate of tax. 4.. In the instant case, it is common ground that the State Government in exercise of the powers vested in it under section 8(5) of the Central Sales Tax Act, passed SRO No. 117 of 1966 with effect from 1st April, 1966, to the effect that in respect of coconut oil and cake sold in the course of inter-State trade or commerce, tax sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .. Learned Government Pleader concedes that "inter-State" sales are taxable only under section 8 of the Central Sales Tax Act, 1956. The only plea of the learned Government Pleader to sustain the levy of additional tax under the Kerala Additional Sales Tax Act, 1978 (Act 20 of 1978), on the "inter-State" sales, is based on the legal effect flowing from section 8(2A) of the Central Sales Tax Act. We are of the view, that reliance placed by the Revenue on section 8(2A) of the Central Sales Tax Act is entirely misplaced. In para 3 supra, we have briefly analysed the scheme relating to levy of tax under the Central Sales Tax Act. Broadly, there are five different situations or categories. Section 8(2A) of the Central Sales Tax Act is in the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er conditions specified therein. In other words, the levy of tax under the Central Act will follow the levy of tax on the sale or purchase of the goods under the State law. The Act, by which the tax is levied, for the sale or purchase of the goods, under the State law, on the specified commodity, alone is relevant or should be looked into. This seems to be the plain meaning of the words used in section 8(2A) of the Central Sales Tax Act. The eye need look no further. Section 8(2A) of the Central Sales Tax Act deals with a situation different from the one contemplated by section 8(5) of the Central Sales Tax Act. The fields of operation of section 8(2A), and section 8(5) of the Central Sales Tax Act, are distinct and different. In the circum ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
