TMI Blog1992 (8) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------------------------------------------------------------ "Sl. Description of goods Rate of sales Rate of Period of No. tax purchase tax operation --------------------------------------------------------------------------- 13 Oil-cakes 2% 2% July 1, 1981 to-date" ---------------------------------------------------------------------------- By a notification dated July 24, 1981, issued under section 41 of the Bombay Sales Tax Act, the State Government exempted all sales of oil-cakes including oil-cakes for the purpose of cattle feed within the State of Maharashtra from payment of whole of tax payable under the provisions of the Act. The said notification is set out below: "Finance Department Sachivalaya, Bombay, Decembe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er made an application to the Deputy Commissioner of Sales Tax, Nagpur Division, seeking the determination of tax payable on oil-cakes sold by it in the inter-State trade in view of the aforesaid notification. It may be mentioned herein that section 52 of the Bombay Sales Tax Act provides for determination of the disputed questions including a question whether any tax is payable in respect of any part of the sale or purchase. The Deputy Commissioner examined the dispute referred to him and came to a conclusion that the oil-cakes being fully exempted from tax under the Bombay Sales Tax Act by virtue of notification dated July 24, 1981, issued by the Government of Maharashtra under section 41 of the Act, sales of such goods made in the course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f oil-cakes by virtue of its inclusion in Schedule C to the Act under item 13. There is no provision for levy of purchase tax as such. Section 13 of the Act to which reference has been made in the order of the Tribunal simply provides for levy of a purchase tax on the turnover of certain purchases of goods specified in Schedule B or C only when a dealer, who is liable to pay tax under the provisions of this Act, purchases the same from a person or Government who or which is not a registered dealer implying thereby that the purchases are made without payment of tax, and uses them for purposes which may not attract the levy of sales tax in his hands on such goods. This, in fact, is a provision enabling the State to realise tax in certain spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Supreme Court reported in International Cotton Corporation (P) Ltd. v. Commercial Tax Officer [1975] 35 STC 1. Before we proceed to deal with these submissions, it may be expedient to set out the provisions of section 8(2A) of the Central Sales Tax Act which read as follows: "8(2A). Notwithstanding anything contained in sub-section (1A) of section 6 or sub-section (1) or clause (b) of sub-section (2) of the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout any condition. It may be observed that under the column "condition" it has been clearly mentioned "nil". The contention of the respondents that the use of the expression "within the State of Maharashtra" itself is a condition is untenable as admittedly the power of the State Government under the State sales tax law is to levy tax or to grant exemptions only in respect of sales or purchases taking place within the State. The State or the authorities under the State law do not have power to make any order in respect of interState sales. If the sales or purchases are generally exempt from tax under the State law, section 8(2A) automatically comes into operation and no tax can be levied on the inter-State sales of such goods. No further no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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