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2014 (9) TMI 301 - HC - VAT and Sales TaxExemption from tax - Advance ruling - Whether the provisions relating to Clarification and Advance Rulings contained in section 67 of the Andhra Pradesh Value Added Tax Act, 2005 would automatically apply to assessments made under the Central Sales Tax Act, 1956, inasmuch as section 9 of the latter Act applies the machinery provisions of the former Act to assessments, levy and collection of tax under the latter Act - Held that:- Provision for "advance ruling" is a mechanism introduced by the Legislature to ensure uniformity in orders of assessment, appellate and revisional orders (other than a revisional order passed by the Commissioner), with regard to the classification of goods under different entries of the various Schedules to the Act or the rate of tax applicable to such goods, etc., thereby avoiding conflicting orders being passed by different assessing/appellate/revisional authorities. Such a mechanism can only be introduced by way of a substantive provision in a statute and cannot be implied. Tax collected under the Central Sales Tax Act is ultimately assigned to the State in view of article 269 as explained in N.K. Nataraja Mudaliar's case [1968 (4) TMI 61 - SUPREME COURT OF INDIA] and the Central sales tax though levied for and collected in the name of the Central Government is a part of the sales tax levied and imposed for the benefit of the State. But from this it does not follow nor does it follow from section 9 of the Central Sales Tax Act that every provision of the VAT Act including provisions relating to "advance ruling" would apply to proceedings for assessment, reassessment, collection and enforcement of payment of tax in relation to inter-State sale transactions under the Central Sales Tax Act. First respondent is entitled to initiate and complete the assessment under the Central Sales Tax Act in respect of the petitioner when its application for "advance ruling" was pending before the authority for advance ruling and pendency of its appeal against the said ruling before the S.T.A.T would also not impede or operate to disentitle the first respondent in any way in initiating or completing the assessment under the Central Sales Tax Act, as the provisions of section 67 of the VAT Act would not apply to assessments made under the Central Sales Tax Act. - it cannot be said that the impugned orders dated March 30, 2011 and February 23, 2012, passed by the first respondent under the Central Sales Tax Act are without jurisdiction. - Decided against assessee.
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