TMI Blog1977 (6) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of which only a single point sales tax is leviable under section 5(2)(b) of the Andhra Pradesh General Sales Tax Act. Section 5 deals with levy of tax on sales or purchases of goods and under section 5(1) every dealer (other than a casual trader and an agent of a non-resident dealer) whose total turnover for a year is not less than Rs. 25,000 and every agent of a non-resident dealer, whatever be his turnover for the year, shall pay a tax for each year, at the rate of four paise on every rupee of his turnover. Every casual trader shall pay a tax at the rate of four paise on every rupee of his turnover. Under section 5(2)(b), notwithstanding anything contained in sub-section (1), the tax under the Act shall be levied in the case of the goods mentioned in the Second Schedule, at the rates and only at the point of purchase specified as applicable thereto, effected in the State by the dealer purchasing them, on his turnover of purchase in each year relating to such goods irrespective of the quantum of turnover. Item 19 of the Second Schedule, which was inserted with effect from 9th September, 1976, is in these terms: Description of goods Point of levy Rate of tax 19. Prawn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only the last sale effected by the actual exporter, who exported the goods out of the territory of India that was covered by section 5(1). In view of this decision of the Supreme Court in the Serajuddin's case(1), the Parliament, in order to give relief to those who entered into the penultimate transactions with the actual exporters of goods, enacted the Central Sales Tax (Amendment) Act (103 of 1976) and by virtue of sub-section (3) of section 5, relief is sought to be given not only to the actual exporter but also to the last dealer whose sale or purchase of any goods is the immediate sale or purchase preceding the sale or purchase occasioning the export of those goods out of the territory of India. So, over and above the transaction of the actual exporter out of India, even the transaction of a person who sells these goods to that exporter is now brought within the meaning of the words "sale or purchase in the course of export of the goods out of the territory of India". At this stage, we may point out that, under section 38 of the Andhra Pradesh General Sales Tax Act, nothing contained in the Act is to be deemed to impose or authorise the imposition of a tax on the sale or p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dhra Pradesh Act 49 of 1976 must be decided with reference to the provisions of the law on the day when the enactment has come to be made. From these premises, Mr. Chowdhary contends that section 38 exempts only sales or purchases covered by section 5(1) and (2) of the Central Sales Tax Act and not those covered by section 5(3) which was brought on the statute book nearly 19 years after section 38 was enacted. It was contended that the State Legislature cannot be imputed with the intention to abdicate its legislative power in favour of the Central Legislature. Mr. Chowdhary relied upon the decision of the Supreme Court in Shama Rao v. Union Territory, Pondicherry(1), and contended that it was not open to the State Legislature to adopt future law. He, therefore, submitted that Central Act 103 of 1976 cannot be said to be in the contemplation of the State Legislature when it enacted section 38 of the Andhra Pradesh General Sales Tax Act and he said affirmatively that section 38 must be taken to comprehend only Chapter II of the Central Sales Tax Act, 1956, as it existed on the day when the Andhra Pradesh General Sales Tax Act was enacted in 1957. He contended that the State law, as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , by enacting section 8(2)(b) of the Central Sales Tax Act effectuated its legislative policy, according to which the rate of Central sales tax should in certain contingencies be not less than the rate of local sales tax in the appropriate State. Such a law cannot be said to be suffering from the vice of excessive delegation of legislative function. On the contrary, it carries out the objective of the legislature, viz., to prevent evasion of payment of Central sales tax and plug the possible loopholes. Thus, on the facts of the case before us, it is obvious, as is clear from this decision of the Supreme Court, that the question of the Andhra Pradesh State Legislature delegating its legislative function to the Central Parliament never arose, because the Andhra Pradesh State Legislature merely gave effect to the provisions of article 286(2) of the Constitution. In this connection, we may also point out that, in Sundararamier Co. v. State of Andhra Pradesh[1958] 9 S.T.C. 298 (S.C.)., in the context of article 286, the provisions of section 22 of the Madras General Sales Tax Act were considered by the Supreme Court. Section 22 of the Madras Act was in terms identical with section 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... outside sales, but invalid in so far as sales in which goods are delivered inside the State are concerned, because such sales are hit by article 286(2)." Thus, the provisions of section 38 and the explanation to section 38 have to be read in the light of article 286(2) of the Constitution. In this connection, we may also point out that, in I. C. Corporation (P.) Ltd. v. Commercial Tax Officer[1975] 35 S.T.C. 1 (S.C.)., Alagiriswami, J., speaking for the Supreme Court, pointed out how the question of interaction between the Central Sales Tax Act and the State Sales Tax Act has to be considered. The question in I.C. Corporation (P.) Ltd. v. Commercial Tax Officer(1) was the same as in the earlier decision in State of Tamil Nadu v. Sitalakshmi Mills Ltd.[1974] 33 S.T.C. 200 (S.C.). The argument similar to the argument advanced by Mr. Chowdhary regarding what the Andhra Pradesh State Legislature had in mind in 1957 while enacting section 38, also appears to have been advanced before the Supreme Court and at page 7 of the Reports, Alagiriswami, J., observed as follows: "It is next contended that as section 8(2)(a) states that the tax payable shall be calculated at the rate applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ises the imposition of, a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce, be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify. It was pointed out in that decision that the meaning or the interpretation of clause (3) of article 286 of the Constitution of India is not to destroy all charging-sections in the Sales Tax Acts of the States which are discrepant with section 15(a) of the Central Sales Tax Act, 1956, but to modify them in accordance therewith. The law of the State is declared to be subject to the restrictions and conditions contained in the law made by Parliament and the rate in the State Act would pro tanto stand modified. In our opinion, the same principles are to be applied in dealing with the problem before us. All that we have to do is to read the provisions of item 19 read with section 5(2)(b) of the Andhra Pradesh General Sales Tax Act in the light of and to the extent to which the same are modified by section 5(3) of the Central Sales Tax Act, when it is contended that the sale or purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... desh General Sales Tax Act read in the light of article 286 of the Constitution, it is for the sales tax authorities in the State of Andhra Pradesh to consider whether (1) the sale or purchase occasioned the export of the goods covered by item 19 out of the territory of India; and (2) whether it is the sale or purchase immediately preceding the sale or purchase which occasioned the export of those goods out of the territory of India. In the light of what we have observed above, it will be for the sales tax authorities to give effect to the provisions of section 5(3) of the Central Sales Tax Act and give exemption if the requirements of section 5(3) of the Central Sales Tax Act are satisfied in respect of any particular sales or purchases of the dealers. With these remarks, we must hold that it is not open to us exercising our jurisdiction under article 226 of the Constitution to issue any specific direction to the sales tax authorities because the required machinery for assessment would be competent and adequate to deal with these questions regarding the satisfaction of the requirements of section 5(3) of the Central Sales Tax Act, which are essentially questions of fact. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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