9911796707
TMI Blog2013 (10) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in the Official Gazette for this purpose. Further power has been conferred upon the Central Government to provide for the lower rate in respect of said goods at par with the rate applicable to the sale or puchase of said goods inside appropriate State under the State tax law. To attract the said clause 8 (1) it is but necessary that there is a notification by the Central Government declaring that the rate of tax on turn over of a selling dealer would be 2 % during course of inter State trade covered by Section 8 (1) or the lower rate as applicable on the sale of the same goods within the State under the State law. So long as a notification under Section 8 (1) is not issued, the proviso to Section 8(1) would continue to hold the field ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds of the Tribunal while recording the findings that since on goods manufactured (Iron Steel) from tax paid raw material on sales within the State attract tax @ 2 %, the same rate would be applicable in respect of inter state sales made from the goods manufactured from tax paid raw material. According to learned counsel for the department the impact of proviso to Section 8 (1) has completely been ignored. The proviso clarifies that so far as a notification under section 8(1) is not issued by an appropriate government notifying the rate of tax being 2 % on the turn over of a selling dealer, the rate would continue to be 4 %. In the facts of the case no notification under Section 8 (1) had been brought on record nor any such notification h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Sales Tax Act or would it be covered by the proviso to Section 8 (1) and, therefore, attract tax @ 4 %. It is not in dispute that the assessee had produced a certificate in Form C as required under Section 8 (4) and, therefore, the other conditions of Section 8 (1) are satisfied. For the purposes of appreciating the controversy, it is worthwhile to reproduce Section 8(1) along with the proviso, which reads as follows : "8 Rates of tax on sales in the course of inter-State trade or commerce (1) Every dealer, who in the course of inter-State 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); shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the lower rate as applicable on the sale of the same goods within the State under the State law. So long as a notification under Section 8 (1) is not issued, the proviso to Section 8(1) would continue to hold the field. The proviso prescribes the rate of tax to be 4 % of the turn over.This follows from simple reading of the proviso quoted above. This Court, therefore, has not hesitation to hold that so long as the notification under the main Section 8 (1) is not issued by the Central Government fixing the rate of tax as 2 % or for lower rate of tax as applicable on the sales within the State under State law, the main section shall also not apply and in that circumstance, the proviso shall determine the rate of tax, which will be 4 % of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
