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1999 (12) TMI 703 - SC - VAT and Sales TaxNotification dated March 12, 1997 issued by the State of Rajasthan under section 8(5) of the Central Sales Tax Act whereby it reduced the rate of sales tax on inter-State sale of cement by any dealer from that State to 4 per cent and did away with the requirement of furnishing of declaration in form C or certificate in form D contemplated by section 8(4) of the Act challenged Held that:- Appeal dismissed. The mere fact that the local sale of cement in Gujarat may have been adversely affected cannot result in the impugned notification being regarded as affecting the free flow of trade and being violative of article 301 of the Constitution. The said provision is concerned with the movement of goods from one State to the another and as far as the present case is concerned, with the lowering of tax, the movement has increased rather than decreasing. We cannot subscribe to the view that the said notification by dispensing with the requirement of furnishing declaration in form C had the effect of facilitating evasion of payment of tax and was violative of the scheme of the Constitutional provisions contained in Chapter XIII. Thus uphold the validity of the impugned notification dated March 12, 1997 issued by the State of Rajasthan.
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