9911796707
TMI Blog2025 (1) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... On the verification of the monthly returns revealed in their Form-1 return filed under the CST Act, 1956, the dealer have reported inter-state sales amounting to Rs. 2,23,00,635.00/- as taxable @ 2% concessional rate, and the tax payable has been paid. But no 'C' forms have been filed in support of their claim of concessional rate of tax. In the absence of 'C' forms your claim of concessional rate of tax are proposed to be treated as sales effected under Section 8(2) of the CST Act, 1956, liable to tax at the rate applicable to the sale inside the state @ 14.5%. For the above reasons, it is proposed to levy tax @ 14.5% on all their interstate sales treating the same as falling under Section 8(2) of the CST Act, 1956, as detailed below subject to consideration of objections if any to be filed in this regard. By the dealer after receiving the proceeding and filed his reply with C-Form in the reference 2nd based. Then, examined the Form-C, the revised below mentioned fresh proceeding is passed. C-Form Submitted Details (Some C-Form has involved by the debit note): S. No. Name of the Purchasing Dealer State C-Form Serial No. Issued Date Goods Value Tax 2% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cific notification to exempt a dealer from payment of tax. It is submitted that the above condition is not fulfilled as no notification has been issued under Section 8(5) of the CST Act. That apart, all the requirements laid down in Sub-Section 4 to Section 8 of the CST Act have also not been fulfilled. 8. It is submitted that in absence of specific notification issued under Section 8(5) of the CST Act, the petitioner cannot claim benefit of exemption under the above notification issued under the Tamil Nadu Value Added Tax (TNVAT) Act, 2006 for local clearance. 9. It is further submitted that the above Notification No.II(1)/CTR/30(a- 2)/2007 (TNGG Extraordinary/March 23, 2007) [G.O.Ms.No.79, Commercial Taxes and Registration (B2) Department dated 23.03.2007] is only intended to exempt the petitioner from payment of Local Tax viz., Value Added Tax under the provisions of the TNVAT Act and therefore would not apply to exemption from payment of the CST under Section 8 of the CST Act. 10. I have considered the arguments advanced by the learned counsel for the petitioner and the learned Additional Government Pleader for the respondent and also perused the decision of this Court rende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Sri Sobarjee. Entry 84 of List-I of the Seventh Schedule to the Constitution empowers the Parliament to make a law providing for levy of duties of excise on tobacco and other goods manufactured or produced in India [except, of course, certain goods mentioned therein]. Indisputably, the special excise duty is an excise duty and is relatable to Entry 84. If so, the levy must be on the manufacture or production of goods. That is how the words "goods manufactured or produced in India" in Entry 84 have been understood by this Court throughout. Once the levy is not there at the time when the goods are manufactured or produced in India, it cannot be levied at the stage of removal of the said goods. The idea of collection at the stage of removal is devised for the sake of convenience. It is not as if the levy is at the stage of removal. It is only the collection that is done at the stage of removal. Admittedly, the special excise duty is an independent duty of excise separate and distinct from the duties of excise levied by the Central Excises and Salt Act, 1944. This levy came into effect only on and from March 1, 1978 which means that the goods produced prior to that date were not subj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , transfer of liability of any firm or Hindu undivided family to pay tax in the event of the dissolution of such firm or partition of such family, recovery of tax from third parties, appeals, reviews, revisions, references, [refunds, rebates, penalties] [charging or payment or interest,] compounding of offences and treatment of documents furnished by a dealer as confidential, shall apply accordingly. 19. As per Sub-Section (1) to Section 8 of the CST Act, every dealer, who in the course of interstate trade or commerce, sells to a registered dealer goods of the description referred to in Sub-Section (3), shall be liable to pay tax under the Act, which shall be 3% of his turnover or at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State, whichever is lower. 20. The goods that are referred to in Sub-Section (3) to Section 8 of the CST Act are as under:- "(3) The goods referred to in Sub-Section (1), (a) .... * (b) are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for resale by him or subject to any rules made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse of interstate trade or commerce not falling within Sub-Section (1), shall be at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State. 24. Explanation to Sub-Section (2) to Section 8 of the CST Act also makes it clear that a dealer shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate State, notwithstanding that he, in fact, may not be so liable under that law. 25. Thus, the rate applicable to sale of purchase of goods inside the appropriate state under the sales tax law of the State is applicable insofar as the turnover or in part thereof which relates to the sale of goods in the course of interstate trade or commerce which does not fall within the purview of Sub- Section (1) to Section 8 of the CST Act. 26. However, there is an exception provided in Sub-Section (5) to Section 8 of the CST Act. It stipulates that notwithstanding anything contained in this Section, the State Government may (on the fulfillment of the requirements laid down in Sub-Section (4) by the dealer), if it is satisfied that it is necessary so to do in the public interest, by notification in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
