9911796707
TMI Blog2000 (3) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... has claimed that he has paid full tax prescribed under the Rajasthan Sales Tax Act on the paddy at the rate of 3 per cent without reference to section 5-C of the Rajasthan Sales Tax Act. He is not liable to pay any tax on the sale of rice sold in the course of inter-State trade or commerce under the aforesaid notification. 3.. It has been case of the revenue that there is another notification of the same date (annexure 5) produced along with petition which provides where tax has been levied under the Rajasthan Sales Tax Act, 1954, in respect of paddy, the tax leviable under the said Act on rice procured out of such paddy, shall be reduced by the amount of tax levied on such paddy. According to revenue such turnover of rice was subjected to tax at the rate of 3 per cent and his liability was reduced by adjusting the amount of tax paid by the assessee on paddy under the Rajasthan Sales Tax Act. annexure 5 being the notification specially governing the tax on paddy and rice, the notification (annexure 6) is not applicable to the petitioner. Accordingly the assessing authority charged tax at 3 per cent on the turnover relating to sale of rice in the course of inter-State trade or c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act No. 74 of 1956), hereinafter referred to as the said Act, the State Government being satisfied that it is necessary so to do in the public interest, hereby directs that the tax payable by any dealer having his place of business in the State, in respect of sale by him from any such place of business in the course of inter-State trade or commerce in respect of- 1.. Paddy, rice and wheat in all their forms including atta (flour) and bran thereof but excluding maida, suji, wheat-flakes and sewaiyan shall be calculated at the rate of three per cent: Provided that where tax has been levied under the Rajasthan Sales Tax Act, 1954, in respect of paddy, the tax leviable under the said Act on rice procured out of such paddy, shall be reduced by the amount of tax levied on such paddy; (Explanation.For the purpose of this item, 'bran of rice' shall also include 'rice-polish'). 2................................... 3................................... 4................................... This shall have immediate effect. Annexure 6: "S. No. 324: No. F. 4(67) FD/Gr. IV/76-25 dated the 8th September, 1976. S.O. 129.-In exercise of the powers conferred by sub-section (5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... difference between the amount of tax on the sale of such raw material at the full rate applicable thereto under section 5 and the amount of tax payable under sub-section (1) but not exceeding one and one quarter times the amount of tax at such full rate, as the assessing authority may determine, having regard to the circumstances in which such use was made." Section 8(5) of the Central Sales Tax Act reads as under: "(5) Notwithstanding anything contained in this section, the State Government may, if it is satisfied that it is necessary so to do in the public interest, by notification in the official gazette, and subject to such conditions as may be specified therein, direct- (a) that no tax under this Act shall be payable by any dealer having his place of business in the State in respect of the sales by him, in the course of inter-State trade or commerce, from any such place of business of any such goods or classes of goods as may be specified in the notification, or that the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) or sub-section (2) as may be mentioned in the notification; (b) that in respect of all sales of goods o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of declared goods, to be calculated (at twice the rate) applicable to the sale or purchase of such goods inside the appropriate State and in the case of goods other than declared goods, shall be calculated at the rate of 10 per cent or at the rate applicable to the sale or purchase of such goods inside the appropriate State, whichever is higher. However, sub-section (5) of section 8 which is relevant for the present purposes provides exception to levy of tax under the sub-sections (1) and (2) of the section 8 of the CST Act. Sub-section (5) enables the State Government to grant concession in payment of tax leviable under sub-sections (1) and (2) in two ways. One by directing that no tax shall be payable under the CST Act by any reason having his place of business in the State in respect of such goods or class of goods as may be specified in the notification and secondly it also enables the State Government to direct the tax on interState trade or commerce shall be calculated at such lower rates than those specified in sub-section (1) or sub-section (2). There is no inhibition that State Government can exercise its power under section 8(5) in only one of the ways in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... saged tax on rice procured out of paddy which has suffered tax under relevant law the actual amount of tax payable on turnover of rice at the rate prescribed therein is to be reduced by amount of tax suffered on paddy from which rice has been procured. Lastly by third notification (annexure 6) No. 25 dated September 8, 1976 also in exercise of powers under section 8(5) of the CST Act, the State Government has directed that no tax shall be paid in respect of sale of any commodity including rice where tax has been paid in respect of such goods under the RST Act otherwise than under section 5C of that Act. Obviously this notification applies to cases where tax on the raw material from which commodity mentioned in the aforesaid notification, annexure 6, has been procured if the same has suffered tax as prescribed under section 5 of the RST Act without availing the benefit of concession under section 5C. That part of the turnover of a dealer in respect of sales of commodities referred to in annexure 6 is not to suffer any tax on such sale in the course of interState trade or commerce. This was in exercise of power for directing full exemption from payment of tax under the CST Act. 14. ..... 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