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TMI Blog2009 (12) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Sree Ayyanar Spinning and Weaving Mills Limited v. State of Tamil Nadu [1998 (2) TMI 558 - MADRAS HIGH COURT] has also stated that moreover, it was impermissible to add additional sales tax to the lower rate of levy made in the public interest, in respect of the goods, to which a notification had been framed under sub-section (5) of section 8 of the Act. When it is the law laid down in respect of the goods for which the notification has been issued under section 8(5) of the Act, there cannot be any levy of additional sales tax, as the section clearly states that the Central sales tax would be at a lower rate as that of the rate fixed in the local Sales Tax Act. W.P. dismissed. - 6618 of 2003 - - - Dated:- 2-12-2009 - RAVIRAJA PANDIA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned when the interState sales are covered by C form declaration prescribed under section 8(4) of the Central Sales Tax Act, the assessing officer cannot assess at a higher rate other than the rate prescribed under the local Act. The correctness of the said order is canvassed in this writ petition. Section 8(2A) reads as follows: 8. Rates of tax on sales in the course of inter-State trade or commerce. (2A) Notwithstanding anything contained in sub-section (1A) of section 6 or sub-section (1) or clause (b) of sub-section (2) of this section, the tax payable under this Act by a dealer on his turnover in so far as the turnover or any part thereof relates to the sale of any goods, the sale or, as the case may be, the purchase o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... four per cent. In a case covered by (a), the Central sales tax will be nil while in a case falling under (b), Central sales tax shall be chargeable at the same lower rate at which the State sales tax is chargeable. The Explanation appended to sub-section seeks to define the words exempt from tax generally . The Explanation is couched in negative terms. It says that for the purposes of the said sub-section, a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the State sales tax law if (i) under the State law the sale or purchase of such goods is exempt only in specified circumstances, or (ii) if under the State law the sale or purchase of such goods is exempt only under specified conditions, or (iii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnments do not place the local consumers in a better position than the consumers outside. Taking note of all these, the section categorically provides that if the goods are exempted under the local Act, generally the tax under the Central Sales Tax Act is nil. If the local tax is less than four per cent, then the tax under the Central Sales Tax Act is also at a lower rate, as provided under the local Act. Incidentally, the Division Bench of this court in the case of Sree Ayyanar Spinning and Weaving Mills Limited v. State of Tamil Nadu [1998] 109 STC 205, has also stated that moreover, it was impermissible to add additional sales tax to the lower rate of levy made in the public interest, in respect of the goods, to which a notification h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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