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2014 (6) TMI 688 - HC - VAT and Sales TaxCharge on property - Crown debt - Priority of recovery of dues of Central Sales Tax (CST) - dispute towards liability towards the component of Central sales tax imposed under the CST Act on account of absence of any provision of such priority being specifically stipulated in the CST Act - Held that:- not only the proceeds of the tax are meant for the benefit of the State, the actual recovery also takes place by the State. It is in view thereof that section 9(1) of the CST Act provides that even tax payable under the CST Act though levied by the Government of India would be collected by the State Government in accordance with provisions of section 9(2) of the State Act from which the movement of goods commences. - for all ends and purposes, the mode of assessment, reassessment, collection and enforcement of payment of tax mechanism provided under the State Sales Tax Act would equally apply to the Central sales tax to be collected under the CST Act. Principle of priority of crown debt is incorporated in almost all the State Sales Tax Acts. We had, in fact, put a specific query to learned counsel for the petitioner as to whether he was aware of any State Sales Tax Act where such priory provision was not incorporated, but the learned counsel was not able to give any such example of a State Act nor is such an example incorporated even in the subsequent written synopsis filed by the petitioner. Charge stands created if meaning is to be given to the words "collection" and "enforcement" found in various provisions, more specifically section 9(1) and 9(3) of the CST Act read with the relevant provisions of section 9(2) of the CST Act, coupled with the right of appropriation conferred in the States though the tax may be collected by the Central Government. Thus, the priority given under section 50 of the RST Act to the recovery of local sales tax will apply with equal force to the recovery of Central sales tax qua inter-State trade or commerce. - Decided against assessee.
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