9911796707
TMI Blog2012 (8) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... istered dealers under the Central Sates Tax Act, 1956 and also are registered dealers under the Bihar Finance Act (Act of 5 of 1981) and then also registered dealers under the Jharkhand Value Added Tax Act, 2005. The petitioners are paying the tax as collected under the Central Sales Tax Act, 1956 to the State of Jharkhand upon every transaction for the inter-State trade and are also paying tax to the State of Jharkhand under the provisions of the Jharkhand Value Added Tax Act, 2005. The coal/coke is a declared goods under section 14 of the CST Act and as such the petitioners make payment to the State Government at the time of purchase of run of mines (R.O.M.) coal from the subsidiaries of Coal India Ltd. or from other coal dealers/units. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exclusive power to make laws with respect to any of the matter enumerated in List I of the Seventh Schedule which is a Union List. Therefore, in view of the entry 42 read with article 246(1), the tax can be imposed only by the Parliament and not by the State legislation. Therefore, the State Government exceeded in its jurisdiction and has illegally imposed tax on the subject covered under article 246(1) read with List I of the Seventh Schedule. 4. The learned counsel for the petitioners submitted that by virtue of this insertion, if the petitioners will sell the goods to any unregistered dealer, then they will not be entitled to the input-tax credit. It is submitted that if the petitioners purchase the commodity of Rs. 5 and added value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the petitioners will be liable to deposit the entire CST realized by them from unregistered dealers/persons of other States with the Government of Jharkhand. It is also submitted that in the Act of 2005, tax is not levied at total value of the commodity, and therefore, the contention of the petitioners is incorrect The tax is to be realized by the dealers on total amount of sale value which is called output tax but the dealers are allowed to deduct tax paid at the time of the purchase (input tax) from output tax and pay the differential amount of the tax to the Government. However, such input-tax credit is not allowable in the circumstances mentioned in the clause 18(8) of the Act. According to the learned counsel for the petitioners, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction on inter-State sale which is apparent from the Jharkhand Value Added Tax Act, 2005. The Jharkhand Value Added Tax Act, 2005, provides to consolidate the law relating to the levy of value added tax on sales or purchase of goods and on entry of goods on local area in the State of Jharkhand and to collect funds for the purpose of development of trade, commerce and industries of the State. 10. So far as the State's power to enact the law relating to levy of value added tax on sales or purchase on goods and on entry of goods into the local area in the State of Jharkhand is concerned, it is not being questioned. The "assessee", "dealer", "input", "input tax", "output tax", etc., have been defined in various clauses under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause as has been made by the statutory provisions. The State has decided to encourage the trade with the registered dealers under the CST Act by giving some credit known as input-tax credit and has not levied any tax or penalty upon the petitioners on their entry to trade with the unregistered dealers. Therefore, from the impugned substitution of sub-clause (ii) of sub-section (4) of section 18, neither the State Government has levied some additional tax on the subject-matters covered under the article 246(1) nor has put any restrictions against the trade by the petitioners with unregistered dealers. Therefore, the petitioners' challenge to substituted provisions of sub-clause (ii) of sub-section (4) of section 18 of the Jharkhand Va ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
