TMI Blog1981 (12) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... he Kerala Additional Sales Tax Ordinance (9 of 1978) in respect of the sales effected by them in the course of inter-State trade. Exhibit P2 which is identical to the other notices reads: "On scrutiny of the returns in form No. II filed under Central sales tax for the month of April, 1978, onwards it is seen that you have not paid the additional tax due as per the Kerala Additional Sales Tax Ordinance No. 9 of 1978. Additional sales tax is also leviable on goods coming under section 8(2A) of the Central Sales Tax Act. You are therefore requested to pay the difference of tax for the months of April to September, 1978, within 3 days." (emphasis* supplied) Ordinance 9 of 1978 was replaced by the Kerala Additional Sales Tax Act, 1978 (Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orced by the authorities empowered to administer the K.G.S.T. Act. They shall exercise their power under the Central Act for and on behalf of the Central Government. The Central Act does not extend to sales which have taken place within the State. Nor does the K.G.S.T. Act or Act 20 of 1978 extend to levy authorised under the Central Act. Neither the State Government nor the officers empowered under the K.G.S.T. Act can exercise power under the Central Act, except in so far as power is specifically granted under the Central Act. Save for the limited power recognised under section 8(5), the tax leviable under the Central Act cannot be varied by the State Government. By resort to Act 20 of 1978 the State Government cannot enhance the tax paya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b) of sub-section (2) of this section, the tax payable under this Act by a dealer on his turnover in so far as the turnover or any part thereof relates to the sale of any goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate State, exempt from tax generally or subject to tax generally at a rate which is lower than four per cent (whether called a tax or fee or by any other name), shall be nil or, as the case may be, shall be calculated at the lower rate. Explanation.-For the purposes of this sub-section a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law the sale or purchase of such, good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such sales shall be calculated at such lower rates than those specified in sub-section (1) or sub-section (2) as may be mentioned in the notification." 4.. Sub-section (2A) of section 8 is a curb on the power to levy tax under sub-sections (1) and (2)(b) of that section. Where in respect of sale within the State certain goods are exempt from tax under the State law or subject to tax at a rate lower than four per cent, then, in respect of such goods sold in the course of inter-State trade or commerce, the tax payable under the Central Act shall be nil, or as the case may be, shall be calculated at the lower rate. Sub-section (5) of section 8 is also a fetter on the power to levy tax. That fetter applies de hors the rate of tax payable unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision allows enhancement of tax in any event. It was in exercise of the power vested in the State Government under sub-section (5) of section 8 of the Central Act that Notification S.R.O. No. 117/66 was issued reading as follows "In exercise of the powers conferred by sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (Act 74 of 1956), the Government of Kerala being satisfied that it is necessary so to do in the public interest, hereby direct that in respect of coconut oil and its cake the tax payable under the said Act by an oil miller having his place of business in the State of Kerala in respect of the sale by him from such place of business of the said goods in the course of inter-State trade or commerce shall be calcu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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