9911796707
TMI Blog2000 (3) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... "Dear Sir, With reference to the above, I am to say that the Assam General Sales Tax Act has become an Act on May 14, 1993 and the provisions of the Act have come into force w.e.f. July 1, 1993. In case of the items covered by Schedule IV of the Act, if a registered dealer effects a sale to an unregistered dealer or a consumer out of goods purchased on payment of tax inside Assam from an importer or a manufacturer, no matter whether purchased prior or after July 1, 1993, he shall have to pay tax at the rate specified under column (c) of the aforesaid Schedule w.e.f. July 1, 1993 and alternatively if the registered dealer sells such goods purchased from an importer or manufacturer in Assam to another dealer registered under the Assam General Sales Tax Act, 1993 he need not pay any tax but shall have to furnish to the assessing officer the relevant purchase voucher as well as a declaration in form 'A' from the purchasing dealer in respect of such sale. I hope the matter has been clarified." 3.. Dr. A.K. Saraf, learned counsel appearing for the petitioner-Association, submitted that the Commissioner of Taxes acted beyond his jurisdiction in issuing the aforesaid circular wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover at the rates specified in column 3 of the Schedule attached to the Act. Sub-section (2) of section 3 provided that the tax under sub-section (1) shall be payable at the stage of first sale of the taxable goods in Assam. For better appreciation we may quote the relevant part of section 3 of the Act of 1956. It reads as follows: "3. Liability to tax.-(1) Every dealer in taxable goods shall pay a tax on his turnover at the rates specified in column 3 of the Schedule attached to this Act. (2) The tax under sub-section (1) shall be payable at the stage of first sale of the taxable goods in Assam: Provided that where any question arises as to whether any particular sale is the first sale in Assam the burden of proof that it is not the first sale shall be on the dealer making the sale." 6.. Component parts of the motor vehicles and trailers were included as item No. 10A to the list of taxable goods attached to the Assam Finance (Sales Tax) Act, 1956. The said item No. 10A reads as follows: "10A. Component parts of the motor vehicles and trailers (including 12 paise in pneumatic tyres) and tubes ordinarily used for motor a rupee." vehicles and trailers (whether or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This has been categorised again into two different parts, i.e., (i) on sale to registered dealers and (ii) at the point of last sale in the State of Assam. In case of sale to a registered dealers, the tax has been levied at the rate of 8 per cent and, in case of last sale, tax has been levied at the rate of 6 per cent. Thus, it appears that the rate of tax has been recast within the limit of 14 per cent. More precisely, the provisions in Schedule IV as quoted above show that the rate of sales tax has been increased from 12 per cent to 14 per cent with effect from July 1, 1993 with a break-up thereof depending upon the status of the customers. Consequently, the levy of sales tax at 6 per cent at the last point of sale is the inevitable outcome of such break-up. 10.. The provisions of the Act of 1993 as pointed out above cannot be a matter of grievance for the registered dealers. The provisions for levy of tax at the point of last sale in the State are also not in challenge. Dr. Saraf, however, maintained that goods purchased before July 1, 1993 on payment of tax at 12 per cent and sold after July 1, 1993 will be taxed again at 6 per cent at the point of last sale which, according ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of payment of tax at the rate of 6 per cent on the last/second sale by a registered dealer to any other person. The policy to levy sales tax at 6 per cent at the last point of sale made on or after July 1, 1993 in the State of Assam has been made the law by the State Legislature. This policy is completely foreign to the taxation policy under the Act of 1956. It is in no way in clash with any right vested under the Act of 1956. The Commissioner of Taxes by the impugned letter simply clarified the provisions of the law as above. Therefore, it cannot be faulted with. 12.. I have also given due consideration to the provisions of repeal and savings as incorporated in section 74 of the Act of 1993. It is true that the notifications/orders, etc., issued under the 1956 Act have been saved by the provisions incorporated in section 74. But this does not in any way support the stand of the writ petitioners. It is not their case that they were enjoying exemption from payment of tax payable under the repealed Act by virtue of any exemption notification. In the instant case, the Legislature levied tax at the last point of sale within the State of Assam with effect from July 1, 1993, i.e., th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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