TMI Blog2021 (4) TMI 1217X X X X Extracts X X X X X X X X Extracts X X X X ..... ds as Railway wagons, engines, coaches and parts thereof . The Explanation to Section 8 of the Act, contemplates that for the purpose of this sub-section, a 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 - the provisions of the Act is clear that the rate of tax on sales in the course of interstate trade or commerce is enumerated under Section 8(1) of the Act. Under sub section (2) of Section 8 of the Act, once the concession for rate of tax is extended to the dealer, who supplied the materials to the Indian Railways, then the said benefit extended under Entry 112 of Part-B of the First Schedule is to be exte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, it is taxable at 12.5% . 3. Taking an exception, the petitioner-company have stated that two different imposition of tax contemplated by way of clarification is in violation of Section 8(2) of the Central Sales Tax Act, 1956 (hereinafter referred to as the 'Act' in short). Thus, they are constrained to move WP No.10623 of 2008. 4. The petitioner is the supplier of plywoods to the Railways for the usage under Railway Wagons/Coaches. 5. The facts regarding supply of plywoods to the Indian Railways are not disputed by the respondents. The petitioner produced evidence and established that they are the supplier of plywoods to the Indian Railways. Therefore, they are entitled for the concessional rate of Sales Tax as contempl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te trade or commerce is enumerated under Section 8(1) of the Act. Under sub section (2) of Section 8 of the Act, once the concession for rate of tax is extended to the dealer, who supplied the materials to the Indian Railways, then the said benefit extended under Entry 112 of Part-B of the First Schedule is to be extended to another State supply also. In other words, there cannot be two sales tax, one for the supply inside the State and the other for another State supply. Once the concession is extended as far as the supply within the State is concerned, then the same benefit is to be extended in respect of interstate supply. Admittedly, supply of plywoods in WP 10623 of 2008 is supplied to the Indian Railways, more specifically, for constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he TNVAT Act. Gaskets used in Railway engine as specified under Entry 112 of Part-B of the First Schedule, if sold outside the State are taxable at 5% if not covered by 'C' Form. However, gaskets having use other than in railway engines are taxable at 14.5% under the appropriate Entry under Part-C of the First Schedule to the TNVAT Act, 2006. 13. With reference to the above contentions, the learned counsel for the petitioner relied on the judgment of the High Court of Karnataka in the case of State of Karnataka vs. M/s.Mysore Thermo Electric Pvt Ltd etc. batches [In STRP Nos.128/11, 199/2011, 286/2011, 290/2011 and 439-452/2012 pronounced on 21.03.2014] , wherein, in paragraph-10, the following observations are made:- 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arnataka vs. Honey Comb International Inc. [(2015) 77 VST 76 (Kar)] , the High Court of Karnataka considered the following observations, which is extracted as under:- From the aforesaid judgments it is clear, a particular use to which an article can be applied in the hands of a special consumer is not determinative of the nature of the article. The intention of the legislature seems to levy a particular rate of tax in respect of sales transactions pertaining to a particular good as enumerated in the Schedules of the Act. What falls from that judgment is, if a particular good is enumerated to the Schedule of the Act, then, levy of tax should be according to the said specification. In fact, a Division Bench of this Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition with reference to the provisions of the Act and therefore, there is no reason to sustain the impugned clarificatory order dated 04.07.2007. 16. Adjudication of other grounds became unnecessary in view of the fact that the subsequent clarification of the first respondent dated 16.12.2013 stands in favour of the writ petitioner in respect of supply of gaskets to the Indian Railways and in WP No.10623 of 2008, the petitioner supplies plywoods for Indian Railways for construction of wagons/coaches. 17. This being the factum, there is no reason to adopt different yardstick as far as the supply of plywoods to the Indian Railways by the petitioner in WP 10623 of 2008 is concerned. 18. Under these circumstances, this Court is of an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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