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2014 (4) TMI 365 - DELHI HIGH COURTEntitlement for Deduction – Whether Tribunal was justified in holding that the exemption from furnishing ‘C’ forms cannot be granted by application u/Rule 7(3) of the Delhi Sales Tax Rules, 1975 r/w Section 9(2) of the CST, Act 1956 – Interpretation of statute - Held that:- Held that:- Judgemnt in Khemka & Co. (Agencies) Pvt. Ltd. Versus State of Maharashtra & State of Mysore Versus Guldas Narasappa Thimmaiah Oil Mills [1975 (2) TMI 91 - SUPREME COURT OF INDIA] followed - Whilst substantive right and liabilities are to be located within the main enactment, i.e. the Central Sales Tax, the procedure to be followed for assessment, collection of duty etc. is dictated by the local, prevailing State law – If penalty is not specifically provided in regard to certain matters, the local enactment cannot be relied upon for that purpose – Relying upon Orissa Cement Ltd. v. State of Orissa and Anr, [1970 (4) TMI 130 - SUPREME COURT OF INDIA] - If in the absence of interest under CST, a local law could not be enforced through Section 9(2) - If one were to keep this aspect in mind, then Orissa Cement (supra), on the other, suggests that rebate for timely payment – provided for in the State law – can be extended by virtue of Section 9(2) as it is intrinsically linked to the concept of tax collection which falls properly within Section 9(2) - The condition for grant of benefit, i.e., the benefit u/s 5(3) and 5(4), subject to production of prescribed declarations, is engrafted within the main statute, i.e. Central Sales Tax. Relying upon Kedarnath Jute Manufacturing Company [1965 (4) TMI 91 - SUPREME COURT OF INDIA] - SC even went to the extent of saying that occurrence of events such as fires cannot be covered expressly by Section 5 and that in the absence of any Rules under the CST Act, local State laws cannot be used to give relief - To take the logic further, permitting such relief in the absence of statutory authorisation would not only transgress the extent of jurisdiction allowed to State authorities by Section 9(2) to lead to diverse and probably contradictory results - In the administration of a concededly Central law, such as the Central Sales Tax Act, despite the statutory injunction contained in Section 5(3) and 5(4), each State of the Union would be free to carve-out myriad exceptions that would only undermine the object of the rule embodied in the substantive provisions - Therefore, Tribunal order does not call for any interference – Decided against assessee.
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