- (1.) The Department has preferred this Sales Tax Revisions against the order of the Tribunal dated 17.02.2007 whereunder the Tribunal has held that since the goods manufactured and sold within the State of U. P after purchase of raw material within the State attract State road tax @ 2 % then in that circumstance the iron steel manufactured from tax paid raw material within the State of U.P. would also attract Central Sales Tax @ 2 % in view of Section 8(2)(a) of the Central Sales Tax Act, as was applicable at the relevant time.
(2.) Counsel for the department submitted that there has been complete reading of the Section 8(2)(a), which provided that in case of declared goods the rate to be applied for inter state sales would be twice the rate applicable on sale or purchase of the same goods inside the appropriate State. He, therefore, submits that in the facts of case since for sales within State of U.P rate of 2 % was applicable, the rate of Central Sales Tax would be 4 %.
(3.) I have heard the counsel for the department and examined the records of this revision.;