TMI Blog1991 (2) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... ed hides and skins in the course of inter-State trade and also paid tax due under the Central Sales Tax Act, 1956 (hereinafter referred to as "the Central Act") on their inter-State sales turnover. Thereafter, he applied for refund of the amount paid under the State Act in view of the provisions of section 15(b) of the Central Act read with sections 6 and 38 of the State Act and rule 27-A of the Rules framed under the State Act. The assessing authority and the Deputy Commissioner held that tanned hides and skins which were sold in the course of inter-State trade were a different commodity from the raw hides and skins and, therefore, the assessee was not entitled to any relief. They relied upon the decisions of the Madras High Court reported in Gordon Woodroffe Company (Madras) P. Ltd. v. State of Tamil Nadu [1977] 40 STC 130 and K.A.K. Anwar and Company v. State of Tamil Nadu [1984] 56 STC 58 and distinguished the decision of our High Court in State of Andhra Pradesh v. Associated Tanners [1975] 36 STC 32 as well as the decision in T.R.C. No. 11 of 1969 dated February 10, 1971. The Tribunal has allowed the appeal. The Seventh Schedule read with article 246 of the Constitution o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a State shall, in so far as it imposes or authorises the imposition of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely: (a) the tax payable under that law in respect of any sale or purchase of such goods inside the State shall not exceed four per cent of the sale or purchase price thereof, and such tax shall not be levied at more than one stage; (b) where a tax has been levied under that law in respect of the sale or purchase inside the State of any declared goods and such goods are sold in the course of inter-State trade or commerce, and tax has been paid under this Act in respect of the sale of such goods in the course of inter-State trade or commerce, the tax levied under such law shall be reimbursed to the person making such sale in the course of inter-State trade or commerce in such manner and subject to such conditions as may be provided in any law in force in that State; (c) ................................. (d) ................................." The Andhra Pradesh General Sales Tax Act, 1957, i.e., the State Act, provides for levy of sales tax on declared goods by section 6 read with the Third Schedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the territory of India; or (iii) in the course of inter-State trade or commerce. Explanation.-The provisions of Chapter II of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) shall apply for the purpose of determining when a sale or purchase takes place in the course of inter-State trade or commerce or outside a State or in the course of import or export." It is not in controversy that the goods covered by entry-hides and skins-whether in a raw or dressed state in section 14 of the Central Act are included in entry 9 of the Third Schedule of the State Act. The State Act has treated untanned hides and skins as a commodity distinct from tanned hides and skins and this will apply for levy of State sales tax. A perusal of the various items of declared goods in section 14 of the Central Act shows that the Parliament was conscious of declared goods in one entry could be more than one commercial commodity. In respect of item (iii) the language extracted above, i.e., hides and skins whether in a raw or dressed state indicates that this is treated as one commodity for the Central Act. The controversy in this is about relief claimed on the sales of declared goods, i.e., one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any such distinction as the goods, hides and skins, whether in raw or dressed state, are of special importance in inter-State trade and commerce. It is with a view to promote inter-State trade and commerce that this benefit is sought to be given to one who has paid tax under the State law in respect of hides and skins, whether they were exported in raw state or exported after they were tanned or dressed.......... If the State, as may be seen from item 9 of Schedule III, has classified hides and skins into two categories, (a) raw hides and skins and (b) tanned hides and skins, it is for the purpose of collection of tax under the State law, and that classification has no relevancy when a dealer asks for relief invoking the provisions of sections 14 and 15 of the Central Sales Tax Act read with the proviso to section 6 of the A.P.G.S.T. Act." In the case reported in State of Andhra Pradesh v. Associated Tanners [1975] 36 STC 32 (AP), the controversy was whether the interState sale of tanned hides and skins was exempt from levy of Central sales tax after the raw hides and skins have suffered tax under the State law in view of section 8(2A) of the Central Act. This contention was n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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