1985 (4) TMI 65 - SC - VAT and Sales Tax

Whether cotton yarn could not be subjected to sales tax because one of the conditions prescribed by S. 15 of that Act had not been complied with?

Held that:- There is ample power under s. 5A of the State Act enabling the Chief Commissioner to specify the single point at which tax may be levied in a series of sales. This can, however, be done by him only by a notification in the Official Gazette. No such notification has been placed before us which could relate to the assessment year under consideration. We hold, therefore, that a vital prerequisite of S. 15 of the Central Sales Tax Act, namely, that the tax shall not be levied at more than one stage, has not been satisfied in respect of the turnover of cotton yarn, and accordingly the assessment complained of is liable to be quashed.

Thus the assessment of the turnover of cotton yarn for the assessment year 1968-69 under the Bengal Finance (Sales Tax) Act, 1941, as applied to the Union Territory of Delhi cannot be sustained. Appeal allowed.