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Report No. 61

4.4. The question of applicability of State amendments.-

Under the section, the provisions of the "General Sales Tax" law of the State concerned on various matters mentioned in the section, apply in relation to the collection and assessment of tax. A controversy has arisen as to whether only the provisions of the State Act, as they existed when the Central Act was passed, are attracted by virtue of this sub-section, or whether amendments made in the State Act subsequent to the passing of the Central Act also become applicable.

4.5. Most High Courts,1-2-3 have taken the latter view. The Madhya Pradesh High Court has also held that the procedure for recovery of Central Sales Tax by the States is governed by the law in force at the time of the recovery of the tax, and not by the law in existence when the Central Act came into force.4 The judgment points out that the definition of "sales tax law" uses the words "for the time being". This is also the Mysore view.5 In the Mysore case6, it was held that in the last part of sub-section (2) of section 9 of the Central Act, the applicability of the provisions of the General Sales Tax law of the State has not been confined only to those cases where the authorities have exercised any power under that law (i.e., the State law). Subject to any rules made under the Central Act, the provisions of the general sales tax law of the State could be applicable for all or any of the purposes mentioned in section 9(2).

1. Auto Pins (India) v. State, AIR 1970 Punj 333 (337), paras. 8 to 11.

2. K.V. Adinarayana Setty v. Corn. Tax Officer, (1963) 14 STC 587 (Mys).

3. C.S.T. v. Kantilal Mohanlal, (1967) 19 STC 377 (MP).

4. Jiwanman Sons (P.) Ltd. v. Deputy Commissioner of Sales Tax, 1971 MP 14 684: 28 STC 247 (251) (Bishmber Dayal, C.J. and Shiv Prasad, J.) (MP).

5. (a) K.V. Adinarayana-Setty v. C.T.O., (1963) 14 STC 517 (597) (Mys);

(b) Mysore Electrical Industries v. C.T.O., AIR 1970 Mys 259 (263), para. 15.

6. K.V. Adinarayana Setty v. C.T.O., (1963) 14 STC 587 (597) (Mys).

Certain Problems connected with Powers of the States to Levy a Tax on the Sale of Goods and with the Central Sales Tax Act, 1956 Back

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