Report No. 61

Point 11-Penalties-Section 9(2), Central Sales Tax Act

There is some uncertainty as to how far section 9(2) of the Central Sales Tax Act covers penalties leviable under the State Sales Tax law. The doubt arises because of absence of specific mention of penalties. One alternative (to remove the doubt on the subject) would be to insert the following sub-section in section 9:

"2(A) In particular, and without prejudice to the generality of the provisions of sub-section (2), penalties leviable under the general Sales Tax law of the State shall also be leviable for the purposes of this Act, as if the tax under this Act had been levied under the general Sales Tax law of the State."

But this would not meet the objection of inequality which has been raised in some cases1. To remove that objection, a better course would be to provide penalties in the Central Act. [Details of the provision cannot be indicated, as that involves several administrative aspects].

1. See Mohan Lal Chokhani v. Commercial Tax Officer, (1971) 28 STC 367 (373) (Cal).

[Chapter 4]