TMI Blog1985 (7) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... cial Appeal Nos. 69 and 83 of 1976, which the Board of Revenue refused to do by its order dated 11th October, 1979: "(1) Whether, under the facts and circumstances of the case, the Board of Revenue was justified in holding that the rate of tax on packing material sold along with cereals is 2 and 1 per cent and not at the rate of 10 per cent in absence of C forms? (2) Whether, under the facts and circumstances of the case, the Board of Revenue was justified in holding that the rate of tax on packing material will be the same which is applicable on the goods packed therein, whereas the packing material was taxable in the State at the rate of 3 per cent and in the absence of C forms the rate which is applicable under section 8(2) of the CS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer-assessee as well as the CTO challenged the order dated 17th March, 1976, passed by the Chairman of the Board, by filing special appeals. The Division Bench of the Board modified the order dated 17th March, 1976, of the Chairman to this extent that rate of tax applicable to sale of "bardana" would be 2 per cent and 1 per cent according to the rate imposable on the goods packed therein instead of 3 per cent. In view of this, the special appeal filed by the CTO (assessing authority) was rejected and the appeal filed by the dealer-assessee was partly, accepted. Reference application under section 15(1) of the Act against the order by which the appeal filed by the dealer-assessee was partly allowed was filed. The Board rejected that appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or (b) sells to a registered dealer other than the Government goods of the description referred to in sub-section (3); shall be liable to pay tax under this Act, which shall be four per cent of his turnover. (2) The tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates to the sale of goods in the course of inter-State trade or commerce not falling within sub-section (1)- (a) in the case of the declared goods, shall be calculated at twice the rate applicable to the sale or purchase of such goods inside the appropriate State; and (b) in the case of goods other than declared goods, shall be calculated at the rate of ten per cent or at the rate applicable to the sale or purchase of such goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the State, whichever is higher. Section 8(2A) is in the nature of proviso. According to it, despite the provisions made in sub-section (1A) of section 6 or in sub-section (1) or clause (b) of sub-section (2); this has to be read as proviso with regard to the rate of tax, which is prescribed under section 8(1) of the CST Act. The word "turnover" used in sub-section (2A) of section 8 of the CST Act shows that if the turnover is exempt from the payment of sales tax under the State Act, it shall also be exempt from the payment of the tax under the CST Act. The goods, on the sale of which, the tax is sought to be assessed, is the packing material and by virtue of the aforesaid proviso to section 5 of the Act, it will be taxable at the rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Division Bench of the Board that the aforesaid proviso of section 5 of the Act is applicable, is correct and when this is the case, the concessional rate on the sale of "bardana" will be applicable to the assessment under the CST Act. In this view of the matter, the Board in special appeal was right in holding that the rate of tax applicable to the sale of "bardana" would be 2 per cent and 1 per cent according to rate of tax imposable on the goods packed therein instead of 3 per cent and no illegality has been committed by it. The application under section 15(2)(b) of the Act, which has been heard as a revision under section 15 of the Act as substituted by the Amendment Act, is dismissed without any order as to costs. Petition dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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