P SUBRAMANIAN Vs. SALES TAX OFFICER SPECIAL CIRCLE PALGHAT
HIGH COURT OF KERALA
SALES TAX OFFICER, SPECIAL CIRCLE, PALGHAT
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(1.)The petitioners in these two writ applications are dealers and assessees to sales tax under the Central Sales Tax Act, 1956 (hereinafter referred to as the Act). The turnover relating to which it was contended by the petitioners that a tax of only 1% should be imposed relates to the sale of 'green ginger' by the petitioners to purchasers in Bombay and other places. This claim that tax can be imposed only at 1% is made because of the provision in S.8(1)(b) of the 'Act reading:
"8. Rates of tax on sales in the course of Inter State trade or commerce:
(1) Every dealer, who in the course of inter State trade or commerce:
(b) sells to a registered dealer other than the 'Government goods of the description referred to in Sub-s.(3);
shall be liable to pay tax under this Act, which; shall be one per cent of his turnover."
(2.)It is admitted that the goods are of the description referred to in Sub-s.(3) of S.8, But there has been no compliance with clause (a) of Sub-s.(4) of S.8 which enacts:
"(4) The provisions of Sub-s.(1) shall not apply to any sale in the course of inter State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the pre scribed manner:
(a) a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority;"
(3.)This non compliance with clause (a) of Sub-s.(4) of S.8, it is urged, was due to the fact that it was impossible, or at least impracticable, to obtain the declaration from the dealers to whom the goods were sold. Those dealers, it is admitted, had not been registered under the Act. They did not so register because, it is said, that at was impossible for them to get themselves registered. The section that deals with registration is S.7 of the Act and we are concerned in this case only with Sub-s.(i) and (2) of S.7. Those Sub-sections are in these terms:
"7. Registration of dealers-- (i) Every dealer liable to tat tax under this Act, shall, within such tune as may be prescribed for the purpose, Such an application for registration under this Act to such authority in the appropriate State as the Central Government may, by general or special order specify, and every such application shall contain such particulars as may be prescribed.
(2) Any dealer liable to pay tax under the sales tax law of the appropriate State, or where there is no such law in force in the appropriate; State or any part thereof, any dealer having a place of business in that State or part, as the case may be, may, notwithstanding that he is not liable to pay tax under this Act, apply for registration under this Act to the authority referred to in Sub-s.(i), and every such application, shall contain such particular as may be prescribed.
Explanation:- For the purposes of this sub-section, a dealer shall be deemed to be liable to pay tax under the sales tax law of the appropriate State notwithstanding that under such law a sale or purchase made by him is exempt from tax or a refund on rebate of tax is admissible in respect thereof;"
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