- (1.) Heard Sri U. K. Pandey on behalf of the department and Sri Shubham Agrawal on behalf of the assessee. The department has filed this revision under Central Sales Tax Act against the order of the Tribunal dated 17.02.2007 passed in Appeal no.542 of 2001 for the assessment year 1995-96. The Tribunal having regard to the provisions of Section 8(1) of the Central Sales Tax Act read with Section 8 (4) has proceeded to hold that since the assessee had furnished a certificate in Form C, the rate of tax to be applied on the inter state sale of Iron & Steel manufactured from tax paid raw material would attract tax at the rate of 2 % only.
(2.) Learned counsel for the department submits that there has been complete misreading of the proviso to Section 8 (1) at the hands of the Tribunal while recording the findings that since on goods manufactured (Iron & Steel) from tax paid raw material on sales within the State attract tax @ 2 %, the same rate would be applicable in respect of inter state sales made from the goods manufactured from tax paid raw material. According to learned counsel for the department the impact of proviso to Section 8 (1) has completely been ignored. The proviso clarifies that so far as a notification under section 8(1) is not issued by an appropriate government notifying the rate of tax being 2 % on the turn over of a selling dealer, the rate would continue to be 4 %. In the facts of the case no notification under Section 8 (1) had been brought on record nor any such notification has been noticed by the Tribunal while holding that the rate of tax on Iron & Steel sold by the assessee to dealers outside the State would attract tax under the Central Sales Tax Act @ 2 % only. He submits that in absence of notification the proviso will hold the field and the rate of tax would be 4 %.
(3.) Learned counsel for the assessee submitted before this Court that since Form C was submitted by the selling dealer as contemplated by Section 8 (4), the provisions of section 8 (1) were satisfied. Since, the rate of tax applicable on the sales affected within the State on such goods was 2 % only. The same rate would apply for inter State sales also. This according to him flows from simple reading of Section 8 (1) of Central Sales Tax Act and, therefore, the order of the Tribunal according to him, is legally justified.;