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TMI Blog2015 (8) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Kerala) Rules, 1957 ("the Rules", for short) and exhibits P8 to P10 orders of assessment and for other incidental reliefs. The learned single judge admitted the writ petition on prayer No. 1 alone by which a declaration that rule 11B(2)(c) of the Central Sales Tax (Kerala) Rules, 1957 as invalid and ultra vires was sought. The petitioner was relegated against the statutory remedies of the appeal against exhibits P8 to P10 orders which was later confirmed in intra court appeal. The only prayer in this writ petition is to declare rule 11B(2)(c) of the Central Sales Tax (Kerala) Rules,1957 as invalid and ultra vires being in consistent with the Central Sales Tax (Registration and Turnover) Rules framed by the Central Government and beyond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso of the CST is a complete code by itself providing exemption from payment of tax on any subsequent sale effected during the movement of goods from one State to another subject to production of certificate and declaration prescribed therein. Section 6 of the Central Sales Tax Act, 1956 (as it stood before the amendment which came into effect on April 1, 2007, i.e., when this writ petition was filed) reads as follows: "6. Liability to tax on inter-State sales.-(1) Subject to the other provisions contained in this Act, every dealer shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, not being earlier than thirty days from the date of such notification, be liable to pay tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less the dealer effecting the sale furnishes to the prescribed authority in the prescribed manner and within the prescribed time or within such further time as that authority may, for sufficient cause, permit,- (a) a certificate duly filled and signed by the registered dealer from whom the goods were purchased containing the prescribed particulars in a prescribed form obtained from the prescribed authority; and (b) if the subsequent sale is made- (i) to a registered dealer, a declaration referred to in clause (a) of sub-section (4) of section 8, or (ii) to the Government, not being a registered dealer, a certificate referred to in clause (b) of sub-section (4) of section 8: Provided further that it shall not be necessary to furnish the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hes to the prescribed authority a certificate in the prescribed manner on the prescribed form duly filled and signed by the official, personnel, consular or diplomatic agent, as the case may be." However, section 6(2) was amended with effect from April 1, 2007 as under: "6. (2) Notwithstanding anything contained in sub-section (1) or sub-section (1A), where a sale of any goods in the course of inter State trade or commerce has either occasioned the movement of such goods from one State to another or has been effected by a transfer of documents of title to such goods during their movement from one State to another, any subsequent sale during such movement effected by a transfer of documents of title to such goods to a registered dealer, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-section." What can be discerned from the contents of section 6 is that the condition for availing of the exemption provided under that section is specified in the provision itself and what is left to the rule-making authority is to frame rules concerning the procedural aspects, viz., the authority before whom a declaration has to be furnished in the manner and time-frame within which it has to be submitted, etc. Therefore, according to the learned counsel for the petitioner, the rule-making authority cannot legislate a law which has the effect of amending the provisions of the statute. Section 13 of the Act deals with the power to make rules. Sub-section (3) of section 13 makes it clear that the State Government may make rules not inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he only requirement of section 6A(2) of the Act is to find whether the particulars contained in the declaration furnished by the dealer are true. Once the prescribed documents are furnished, production of further documents cannot be insisted upon; it was argued by the learned counsel for the petitioner. I see force in the said submission. The Parliament in its wisdom declared under section 6(2) that where a sale of any goods in the course of inter-State trade or commerce has either occasioned the movement of the goods from one State to another or has been effected by a transfer of documents of title to such goods during their movement from one State to another, any subsequent sale effected by a transfer of documents of title to such goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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