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TMI Blog2011 (11) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... n Territory of Delhi ? b) Whether the Tax imposed on cotton yarn under the Bengal Finance (Sales Tax) Act, 1941 as extended to the Union Territory of Delhi, is in accordance with law irrespective of the fact that no stage of imposition has been fixed under the said Act? c) Whether under the Bengal Finance (Sales Tax) Act, 1941 as extended to the Union Territory of Delhi, the tax imposed on cotton yarn without fixing the stage of imposition is in conformity with the provisions of Section 15 of the Central Sale Tax Act, 1956? d) Whether on the facts and in the circumstances of the case the tax imposed on cotton yarn declared to be of special importance under Section 14 of the Central Sales Tax Act, 1956, is in accordan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersed by the Delhi High Court. The matter was taken in the appeal before the Supreme Court and was pending before the Supreme Court. In another case namely Dina Nath and Sons (37 STC 357) which was also heard along with the case of M/s Govind Saran Ganga Saran, the Delhi High Court did not approve the view of the Financial Commissioner as in the case of M/s Govind Saran Ganga Saran. In view of the decision of the Delhi High Court in those two cases, it was noted that the sales of cotton yarn was assessable to sales tax at one stage and that the State Sales Tax Act had only to ensure that they were not taxed at more than one stage. Consequently, the view of the Delhi High Court in the cases of M/s Govind Saran Ganga Saran and Dina Nath and S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Section 15 of the Central Sales Tax Act, 1956? 4. Whether on the facts and in the circumstances of the case the tax imposed on cotton yarn declared to be of Special importance under Section 14 of the Central Sales Tax Act, 1956, is in accordance with law? The Tribunal declined to do so, relying upon the Delhi High Court's Judgment in the case Dina Nath and Sons Vs. Sales Tax Officer ( Delhi) reported in 37 STC 356. The decision in Dina Nath and Sons stand impliedly overruled by the Judgment of this court in Govind Saran Ganga Ram Vs. Commissioner of Sales Tax and others, reported in 1985 (3) S.C.R. 985. This appeal by special leave against the decision of the Tribunal in appeal No. 551/73 declining to refer to the High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e concerned with the taxation of goods which under Section 14 of the Central Sales Tax Act have been declared to be of special importance in inter-State trade or commerce. Where the turnover of such goods is subjected to tax under the sales tax law of a State, section 15 prescribes the maximum rate at which such tax may be imposed and requires that such tax shall not be levied at more than one point. The two conditions have been imposed in order to ensure that inter-State trade or commerce in such goods is not hampered by heavy taxation within the State occasioned by an excessive rate of tax or by multi-point taxation. Section 15 enacts restrictions and conditions which are essential to the validity of an impost by the State on such goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved as under:- "We are of opinion that there is ample power under section 5A of the State Act enabling the Chief Commissioner to specify the single point at which tax may be levied in a series of sales. This can, however, be done by him only by a notification in the Official Gazette. No such notification has been placed before us which could relate to the assessment year under consideration. We hold therefore that a vital prerequisite of section 15 of the Central Sales Tax Act, namely, that the tax shall not be levied at more than one stage, has not been satisfied in respect of the turnover of cotton yarn, and accordingly the assessment complained of is liable to be quashed." 7. In the present case also, we find that there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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