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2009 (12) TMI 866 - MADRAS HIGH COURTWhether the levy of additional sales tax at one per cent so as to bring the rate of tax to four per cent in respect of inter-State sale of cotton during the assessment year 1996-97 is correct when the rate of tax under the local Act is only three per cent? Held that:- The section 8(2A) categorically provides that if the goods are exempted under the local Act, generally the tax under the Central Sales Tax Act is nil. If the local tax is less than four per cent, then the tax under the Central Sales Tax Act is also at a lower rate, as provided under the local Act. Incidentally, the Division Bench of this court in the case of Sree Ayyanar Spinning and Weaving Mills Limited v. State of Tamil Nadu [1998 (2) TMI 558 - MADRAS HIGH COURT] has also stated that moreover, it was impermissible to add additional sales tax to the lower rate of levy made in the public interest, in respect of the goods, to which a notification had been framed under sub-section (5) of section 8 of the Act. When it is the law laid down in respect of the goods for which the notification has been issued under section 8(5) of the Act, there cannot be any levy of additional sales tax, as the section clearly states that the Central sales tax would be at a lower rate as that of the rate fixed in the local Sales Tax Act. W.P. dismissed.
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