9911796707
TMI Blog1997 (9) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... sment for the years 1976-77 and 1977-78 did not levy additional tax of 2 per cent of the tax payable by the dealer on the inter-State sales made by him on cotton yarn, waste cotton yarn and yarn other than the cotton yarn. This was done ignoring the additional tax at the rate of 2 per cent payable under section 5A of the State Act. Original tax imposed was at the rate of 2 per cent on the cotton yarn and waste yarn and 1 per cent on yarn other than cotton yarn. 3.. Revisional authority took suo motu action and issued notice to the assessee proposing that the rates of sales tax on cotton yarn and waste cotton yarn at 2.04 per cent and on yarn other than cotton at 1.02 per cent, i.e., after including the additional tax imposed by the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot create liabilities. Section 6 of the Central Act is the charging section. As no additional tax has been imposed under the charging section of the Central Act, the additional tax imposed under the State Act could not be levied on the inter-State sales. 5.. On these facts, at the instance of the department, the following question of law has been referred to this Court for its opinion: Whether, in the facts and circumstances of the case, the additional tax partakes the character of the original tax in the inter-State transactions and enhances the rate of tax applicable to the goods and that section 8(2-A) of the Central Sales Tax Act, 1956, does not exclude the applicability of the additional rate of tax? 6.. Question referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s affects the rates under the Central Act. Consequently, it was held that in cases where rate of tax under the local laws is less than 4 per cent on declared goods then that rate shall be applicable to the inter-State sales of the same commodity if the provisions of section 8(2-A) of the Central Act are applicable. The dealer would then be liable to pay tax at the rates as enhanced by the additional tax and, therefore, the rate applicable would include the additional tax on the inter-State sales as well. It was observed: ............The question for consideration is as to whether the additional tax levied under the Kerala Additional Sales Tax Act is also to be considered as sales tax under the sales tax law of the State. The question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only the General Sales Tax Act provisions and not the Additional Sales Tax Act provisions. Section 2(i) of the Central Sales Tax Act defines sales tax law as meaning any law for the time being in force in any State or part thereof which provides for the levy of taxes on the sale or purchase of goods generally or on any specified goods expressly mentioned in that behalf, and general sales tax law means the law for the time being in force in any State or part thereof which provides for the levy of tax on the sale or purchase of goods generally . The definition does not say that the sales tax law or the general sales tax law which levies taxes on sale or purchase of goods shall be under a single enactment. What is relevant is whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Legislature. The rates of tax in certain cases under the Central Act are linked to the rates fixed under the local Acts and that is how the amendment of the local Acts affects the rates under the Central Act. It is still the Central Act that is applied but only for purposes of fixing the rate of tax leviable under the Central Sales Tax Act the provisions of the local Act are looked into. So construed we have no doubt that in all cases where the rate of tax under the local law is less than four per cent that will be the rate applicable to the inter-State sale of the same commodity if the provisions of section 8(2-A) of the Central Sales Tax Act are applicable. The dealer undoubtedly would be paying at the rate as enhanced by the Additional ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
