Report No. 61
Intro.-10. Analysis of the Central Sales Tax Act.- An analysis of the long title of the Central Sales Tax Act will indicate the principal purposes of the enactment. These are-
(1) to formulate principles for determining when a sale or purchase of goods takes place-
(a) in the course of inter-State trade or commerce (section 3), or
(b) outside a State (section 4), or
(c) in the course of import into or export from India (section 5);
(2) to provide for the-
(a) levy (sections 6 & 8),
(b) collection [sections 9(1) and 9(2)1, and
(c) distribution [see, section 9(4)] of taxes on sales at (1) above, and sale of goods declared to be of special importance in inter-State trade or commerce; and
(3) to declare certain goods to be of special importance in inter-State trade or commerce [section 14]; and
(4) to specify the restrictions and conditions to which State laws imposing taxes on the sale or purchase of such goods of special importance shall be subject [section 15].
The remaining sections of the Act relate to ancillary matters or confer powers, e.g., section 1 (giving the short title, etc.), section 2 (giving definitions), section 7 (providing for registration of dealers), sections 9A, 10 and 11 (banning the collection of tax except by registered dealers, enumerating offences and providing for penalty, cognizance, etc.,) section 12 (providing for indemnity to officers), section 13 (granting a rule-making power) and section 16 (repealing an earlier Act declaring certain goods to be essential commodities). We now proceed to discuss the questions referred to us, and such other matters as have raised difficulties.