TMI Blog1990 (6) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, under section 14 of the Central Sales Tax Act, 1956 ("the CST Act", for short). Section 15 of the CST Act imposes certain restrictions and conditions in regard to tax on sale or purchase of declared goods within a State. By Karnataka Act 23 of 1983, tax is levied on sale, as well as purchase of coconuts in the State of Karnataka, which according to the petitioner is constitutionally impermissible. It is asserted that, under the KST Act, tax was leviable on the fresh purchase in the State. In respect of coconuts purchased locally within the State, tax was being levied at the earliest point of purchase; now after the amendment, in respect of purchases made by inter-State sales, tax is not levied, but tax is levied at the point of first sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State of Karnataka by inter-State trade, tax is already levied under section 15 of the CST Act; such coconuts already bear the tax burden; imposition of one more tax again, while these coconuts are sold in the State, at the first point of sale, enhances the burden on the goods; this primarily attracts the bar imposed by article 304(a). 5.. It is not possible for us to accept the arguments of the learned counsel. Under entry 54, List II of the Constitution, sales tax may be levied on any aspect of the sale transaction. There is no bar against choosing either points of the transaction of sale for the levy; whether, the levy is at the point of sale or at the point of purchase, the levy is on the transaction of sale; concept of "sale" nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le answer is to note that this is inevitable in any kind of inter-State transaction. The State of Karnataka cannot examine the higher cost of production and other components which go into the cost of goods brought into Karnataka; the Constitution, nowhere, contemplates such a restriction on the State's power to levy sales tax. Article 304(a) of the Constitution prohibits imposition of a tax on goods imported from other States, if "similar" tax is not imposed on goods manufactured or produced in the State. Sales tax is levied on sale transactions of coconuts in the State of Karnataka. If so, sales tax can be levied on sale transactions of coconuts which are brought into Karnataka. The point of levy is irrelevant so long as the rate of tax is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly brought out and established. The discriminatory treatment has to be a real discrimination. State of Karnataka here, has not levied anything on coconuts brought into Karnataka, which, coconuts produced in this State need not suffer. A single point of levy regarding the sale transaction is envisaged by the impugned entry 5(e), either at the point of purchase or at the point of sale. 9.. The ratio of the decision of the Supreme Court in Sri Doki China Guruvulu Son Co. v. Government of Andhra Pradesh [1990] 76 STC 235, is equally applicable to the instant case. Relevant facts are neatly summarised in the head note to the report at page 235, which reads: "Tamarind was originally liable to sales tax in the State of Andhra Pradesh un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of tamarind purchased within the State, i.e., produced within the State, the tax is levied at the point of first purchase, and in the case of imported tamarind, i.e., purchased outside the State, the tax is levied at the point of first sale in the State." Thereafter, the contention of the petitioner therein, that the cost of tamarind imported into the State being more (in view of freight charges, etc.) it should not be taxed again in the State, was rejected: "Tamarind will be imported only when it can be sold in the market here at the same price as the tamarind produced within the State. Only when after bearing the other State tax and freight charges, if it is able to compete with the locally produced tamarind, it will normally be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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