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2021 (4) TMI 1217 - HC - VAT and Sales TaxClassification of goods - rate of tax - plywood when it is sold locally to Railways within the State and if sold to Railways under CST on interstate sales - eligibility for concessional rate of sales tax - HELD THAT:- The facts regarding supply of plywoods to the Indian Railways are not disputed by the respondents. The petitioner produced evidence and established that they are the supplier of plywoods to the Indian Railways. Therefore, they are entitled for the concessional rate of Sales Tax as contemplated under Entry 112 of Part-B of the First Schedule, which reads as “Railway wagons, engines, coaches and parts thereof”. The Explanation to Section 8 of the Act, contemplates that “for the purpose of this sub-section, a dealer shall be deemed to be a dealer liable to pay tax under the Sales Tax Law of the appropriate State, notwithstanding that he, in fact, may not be so liable under that law” - the provisions of the Act is clear that the rate of tax on sales in the course of interstate trade or commerce is enumerated under Section 8(1) of the Act. Under sub section (2) of Section 8 of the Act, once the concession for rate of tax is extended to the dealer, who supplied the materials to the Indian Railways, then the said benefit extended under Entry 112 of Part-B of the First Schedule is to be extended to another State supply also. In other words, there cannot be two sales tax, one for the supply inside the State and the other for another State supply. Once the concession is extended as far as the supply within the State is concerned, then the same benefit is to be extended in respect of interstate supply. Admittedly, supply of plywoods in WP 10623 of 2008 is supplied to the Indian Railways, more specifically, for construction of Railway coaches. This Court is of an opinion that the concessional tax granted to the petitioner with reference to supply of plywoods, within the State is to be extended in respect of supply of plywoods to interstate to the Indian Railway - Petition allowed.
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