TMI Blog1968 (3) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee under the Central Sales Tax Act was valid?" 2.. The questions arise in this manner. The assessee, Messrs Girja Prasad Sunderlal, Satna, is a dealer in tendu leaves at Satna. In proceedings for assessment of sales tax for the year 1961-62, the assessee was assessed to pay tax at 7 per cent. on a turnover of Rs. 81,954.15 P. from sales of tendu leaves to one Messrs A.S. Kasim Brothers of Tadpali in Andhra Pradesh. The assessing authority declined to assess the turnover at 1 per cent. under sub-section (1) of section 8 of the Central Sales Tax Act, 1956 (74 of 1956), on the ground that the declaration in Form "C" of the purchasing dealer submitted by the assessee was invalid being contrary to the proviso to rule 8 of the Madhya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority" and "prescribed manner" mean the authority and manner prescribed by rules made under the Act. Section 13(1) of the Central Sales Tax Act authorises the Central Government to make rules providing, inter alia, the form in which, and the particulars to be contained in, any declaration or certificate to be given under the Act. 4.. The assessee did furnish the requisite declaration in Form "C" prescribed under the Rules, framed by the Central Government, in exercise of the powers vested in them by section 13(1)(d) of the Act. Its liability to pay tax at the higher rate proceeds on the breach of the proviso to rule 8 of the Madhya Pradesh Sales Tax (Central) Rules, 1957, framed by the Madhya Pradesh Government under sections 13(3) and 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In State of Madras v. R. Nand Lal Co. [1967] 20 S.T.C. 374 S.C. , their Lordships of the Supreme Court have recently questioned the validity of the corresponding rule,10(1) of the Central Sales Tax (Madras) Rules, 1957, in these words: "We are constrained to observe that the rule-making authorities have failed to appreciate the scheme of section 13 of the Central Sales Tax Act. We are of the opinion that it was not within the competence of the State authorities under section 13(3) and (4) of the Central Sales Tax Act to provide that a single declaration covering more than one transaction shall not be made. Authority to prescribe such an injunction cannot have its source in section 13(3) or section 13(4)(e): it can only be in the authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) of section 8 of the Central Sales Tax Act and its turnover was, therefore, taxable at the lower rate of 1 per cent. under section 8(1) of the Act because, without the proviso, all the statutory requirements were admittedly fulfilled. Even otherwise, on the finding reached by the Tribunal, there was only one transaction of sale of tendu leaves and the declaration in Form "C" submitted by the assessee must be held to be valid. 5. In the view we have taken, the second question must be answered in the affirmative. The first question has, therefore, become academic and we would decline to answer it on that ground. The assessee shall have its costs of this reference. Hearing fee Rs. 50, if certified. Reference answered accordingly. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
