9911796707
TMI Blog1997 (7) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... inter-State sales, the assessee is entitled to the benefit of the notification issued by the Governor of Tamil Nadu on March 19, 1976, in exercise of the powers conferred by section 8(5) of the Act, reducing the rate of tax on sale of cotton yarn in the course of inter-State trade or commerce to two per cent, as that notification does not mention the date from which it shall take effect, and has therefore to be, deemed to be effective for the whole of the year, for which tax is payable. 3.. We have been taken through the order of the Commissioner. We have also seen the report made by the inter-State Investigation Cell, which had inspected the premises of the assessee at Madras and that of its agent at Coimbatore. That report as also the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal and whose order was the subject-matter of the suo motu revision. 6.. Learned counsel for the assessee contended that the notification issued by the Governor of Tamil Nadu on March 19, 1976 does not specify the date from which it shall come into effect, and therefore, effect is required to be given to that notification from the date of commencement of the financial year, viz., April 1, 1975 to cover the entire period of twelve months, therefrom, i.e., till March 31, 1976. It is not in dispute that the notification does not mention the date on which it shall come into force. The relevant part of the notification reads as under: In exercise of the powers conferred by sub-section (5) of section 8 of the Central Sales Tax Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dge then went on to hold that if the tax is yearly and is to be paid on the taxable turnover of a dealer, then the exemption, whenever it comes in, in the year for which the tax is payable, would exempt sales of those goods throughout the year, unless the Act said that the notification was not to have this effect, or the notification fixed the date for the commencement of the exemption . 8.. Following that judgment, the High Court of Bombay, in the case of Commissioner of Sales Tax v. Cooper Co. [1968] 22 STC 111 held that a notification issued under the Central Sales Tax Act, granting a deduction must be given effect to for the whole of the assessment year, if in that notification the date on which it shall come into force or being g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the date notified as the date from which the levy under that section shall come into force. Section 9(2) of the Act makes the provisions of State Sales Tax Act applicable, inter alia, to the assessment, reassessment, collection and enforcement of payment of any tax under this Act, in the same manner as done by the same authorities under the State Act. 11.. Having regard to these provisions of the Act, it is clear that the levy of the tax under the Act is on goods sold in the course of the inter-State trade during the year at the rates prescribed or those applicable for the year unless a contrary intention is disclosed in the notification. 12.. In the instant case, the notification issued under section 8(5) of the Act does not ment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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