TMI Blog1996 (10) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... by an order dated July 17, 1990 assessed certain transactions made in the course of inter-State sales during the period October 23, 1987 to March 31, 1989 unsupported by "C" forms to tax under the CST Act at the normal rate amounting to Rs. 5,827 (plus surcharge of Rs. 473) and levied interest of Rs. 3,024 under section 11B, RST Act. The DC (Appeals) by his order dated December 12, 1990 in Appeal No. 159/Sp-3 /CST/90-91 set aside the assessing authority s order on the appeal by the dealer. The department s appeal against this was rejected by the Board by its order dated September 1, 1994 in Appeal No. 202/91/ST/Jaipur. This gives rise to revision No. 74 of 1995. 5.. We have heard the learned counsel for the parties. 5.1. The learned counsel for the respondent-dealer had two preliminary objections. 5.2. The first was that the applications for revision could have been filed only by the Commissioner, Commercial Taxes (CCT) and not by the present petitioner. This objection has no force. Section 15(2), RST Act, is relevant and provides that the CCT may, if he objects to any order made by the Board under section 14B direct any Commercial Taxes Officer (CTO) or Assistant Commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho in the course of inter-State trade or commerce,- (a) sells to the Government any goods; 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 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 inside the appropriate State, whichever is higher; and for the purpose of making any such calculation any such dealer shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate State, notwithstanding that he, in fact, may not be so liable under that law. (2-A) Notwithstanding anything contained in sub-section (1-A) of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, and subject to such conditions as may be specified therein, direct,- (a) that no tax under this Act shall be payable by any dealer having his place of business in the State in respect of the sales by him, in the course of inter-State trade or commerce, from any such place of business of any such goods or classes of goods as may be specified in the notification, or that the tax on such sales shall be calculated at such lower rates than those specified in subsection (1) or sub-section (2) as may be mentioned in the notification; (b) that in respect of all sales of goods or sales of such classes of goods as may be specified in the notification, which are made, in the course of interState trade or commerce, by any dealer having his place of business in the State or by any class of such dealers as may be specified in the notification to any person or to such class of persons as may be specified in the notification, no tax under this Act shall be payable or the tax on 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." 9.. Rule 12(1) of the Central Sales Tax (Registration and Turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and no other. In other words, the condition mentioned in sub-section (4) of section 8 cannot be insisted upon as a condition for obtaining the benefit under the notification. We are of the opinion that the said contention is misconceived and that the Division Bench of the High Court has erred grievously in accepting it. Sub-section (5) of section 8 is an integral part of section 8 and the Act as such. The said powers has to be exercised in public interest. The power of exemption and its exercise is to be guided by and be consistent with the provisions of the Act. More important, the levy of Central sales tax and the prescription of rate is not by the notifications but by the Act itself. Section 8(1) prescribes the rate and sub-section (4) the condition that has to be satisfied for availing of the rate in sub-section (1). What the notifications do is to reduce the rate prescribed by section 8(1) further, subject to certain conditions. The conditions prescribed by the notifications are the conditions prescribed for availing the further reduction of rate provided by the notification. The notifications merely reduce the rate of tax; they do not do away with the levy altogether. All ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trictly speaking, superfluous and redundant and can be said to have been made by way of clarification and abundant caution and cannot be taken to mean that prior to March 7, 1994 there was no such requirement. 11.. In this view of the matter, the impugned orders of the Board dated August 19, 1994 and September 1, 1994 and of the Deputy Commissioner (Appeals) dated January 16, 1991 and December 12, 1990 cannot be sustained and are hereby set aside. 12.. During the course of arguments an oral plea was made by the learned counsel for the respondent-dealer that in one of the cases the "C" forms submitted by the dealer was not accepted by the assessing authority as it covered more than one transaction which should be accepted and cited Commercial Taxes Officer, Pali v. Kanhayalal Mohanlal [1987] 64 STC 449 (Raj) in support in which it was held that in the case of form ST-17 under the RST Act/Rules the furnishing of a single declaration form for more than one transaction was only a technical default and could be overlooked. The forms in question are not before us and nor can adequate details be discerned from the orders of the lower authorities for this Tribunal to take a view in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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