The central sales tax act 1956 the central sales tax act, 1956 act no. Form c under central sales tax act 1956 caclubindia. Commission and in consultation with he state governments, the central sales tax act, 1956 was enacted which came into force on 05. Bengal sales tax act, 1954 for short, the 1954 act or the west bengal sales tax act, 1994 for short, the 1994 act. Sales return in the current year against the sales made in the immediately preceding financial year can also be deducted from the current year turnover. Government of india law commission of india report. Cst act section 6a of cst act, 1956, which governs the transfer of goods otherwise than by way of sale is held constitutional by honorable karnataka high court in the case of new kiran cashews vs. Get free access to the complete judgment in kalaburagi cements pvt. Central sales tax act, 1956 for brevity, the cst act on. Claim and grant of setoff in respect of purchases made during any. However, from judgment of tribunal further reference is made to honble bombay high court and the outcome of the same will decide the fate of exempted sale. The central sales tax act 1956 e prescribed means prescribed by rules made under this act.
Act read with section 9 2 of the central sales tax act, 1956 for short cst act. Particulars relating to registration, licence, permission. Central sales tax act, 1956 taxation by the states of sales in the course of import. Section 5 of the central sales tax act,1956 law commission of india. The central sales tax act, 1956 page amendment to the central sale. The admitted factual position in the present cases is that after importing foreign made cigarettes, the appellants stored the same in. Exercising this power the parliament vide section 14 of the central sales tax act 1956 has declared some goods as of special importance and has placed restrictions us 15 of cst act. Subsequent sale sale in transit under cst act, 1956 taxguru. Feb 01, 2005 the question raised is whether particular transactions entered into between the appellant were interstate sales within the meaning of the central sales tax act, 1956 or were sales which have taken place in vishakhapatnam in the state of andhra pradesh and, therefore, subject to the tax under the andhra pradesh general sales tax act, 1957.
On the basis of the findings of the enforcement department, the case was adjudicated and the exemption claim of the appellant was disallowed. The devastating impact of the proposed amendment to the. The levy of tax on interstate sales under the central sales tax act. Under the act the central sales tax act, 1956 department. Cst forms excise and taxation department himachal pradesh. Mar 22, 2014 the said transaction falls us 52 of central sales tax act, 1956. Central sales tax act 1956 section 8 court madhya pradesh. Central sales tax act 1956 act 74 of 1956 an act to formulate principles for determining when a sale or purchase of goods takes place in the course of interstate trade of commerce or outside a state or in the course of imports into or export from india, to provide for. The central sales tax law is comparatively very small act. The assessee is registered under the provisions of the central sales tax act, 1956 for short hereinafter referred to as the cst act and the karnataka value added. On 511957 the entire act came into force except section 15. Return by a dealer under the central sales tax act, 1956 161 kb form vib notice under rule 9a of the central sales tax bombay rules, 1957 75. The central sales tax act, 1956 department of goods and. Central sales tax act, 1956 as on 5th march 2014 act no.
Sales tax bond to bond sale does not qualify as high seas. Status or relationship of the person, who makes this. Provisions related to declared goods under cst act, 1956. This act may be called the central sales tax act, 1956. Ans section 3a of cst act, 1956 defines the interstate salepurchase transaction. These appeals take exception to the judgment and order of the high court at calcutta for short, the high court, dated 16. Before taxation laws ammendment act 2007 section 82a of the cst act 1956 provided that if declared goods are sold to unregistered dealer in the cource of interstate sale, the cst rate will be twice the rate applicable in case of local sales. Section 3b defines the interstate sale effected by transfer of documents of title to goods. The central sales tax act, 1956 6 the time being in force in any state or part thereof which provides for the levy of tax on the sale or purchase of goods generally and includes value added tax law.
All these four appeals are being dealt with by this judgment as they all. The central sales tax pondicherry rules, 1967 in exercise of the powers conferred by subsections 3, 4 and 5 of section of the central sales tax act, 1956 act 74 of 1956 read with the notification no. Act, he needs to furnish formf to be issued by punjab vat department to his. Although cst act 1956 is on the verge of its end with the advent of gst as it is knocking at the door even since long and waiting to change the whole picture of indirect taxation in india. The central sales tax accountsand procedure rules, 1957 was enacted in exercise of the powers conferred by subsection 1 of section of the central sales tax act, 1956 and the government of meghalaya has amendment the respective provisions of this act by virtue of these rules meghalaya rules. The appellant, were registered dealers under the bombay sales tax act,1959 as well as the central sales tax act, 1956 respectively. Chapter i preliminary short title and commencement. The central sales tax act, 1956 page 1 of 20 the central sales tax act, 1956 act no. Major head 0040 tax on sales, trade etc minor head 101 receipts under the central sales tax act. It is engaged in the business of manufacture and supply of construction chemicals. Thakar, advocate 1 uti mutual fund vat sa 100 to 102 of 2014 dt. They are importers of drugs, pharmaceuticals and laboratory chemicals. In these rules, unless the context otherwise requires. An interstate sale contemplated by clause b is one, which is effected by transfer of documents of title.
Sales tax bond to bond sale does not qualify as high. Section 81 b of cst act, 1956 provides that the dealer can deduct the sale price of goods returned with in the period of six months from the date of sale from his current gross turnover. Jasbir singh, desired that a copy of its judgment may be sent to the law commission of india for taking appropriate measures for amending the hindu adoptions and maintenance act, 1956, w. Definitions 3 7 7 chapter ii formula non of prinoples for determining when a sale or purchase of goods takes place in the course of. Section 62 of the act provides for exemption from payment of tax on the subsequent interstate sales of goods, if such dealer claiming exemption files before his assessing authority a certificate in form ei or eii as the case may be obtained from his seller and a declaration in form c obtained from his purchasing dealer. In exercise of the powers conferred by subsection 1 of section of the central sales tax act, 1956 74 of 1956, the central government hereby makes the following rules, namely. Central sales tax act, central sales tax act 1956goi, 215 kb, pdf, download. Thereafter, relying on the madras high court judgement in case of state trading.
Levied by central govt the cst is leveied by the central govt. Mar 19, 2021 the central sales tax act, 1956 is derived out of entry 92a of the union list of schedule vii of the constitution of india. In our opinion, however, such construction would not be proper to interpret the provisions of section 3 of the 1956 act. An act to formulate principles for determining when a. When the goods are in movement from one state to other. The further issue arises about exempted sale from ftwz. The demand was also confirmed by the first appellate authority. Form eii, certificate under subsection 2 of section 6, pdf icon 99. Year ended on 4 amount in figure rs 5 amount in words 6 head of account. Exemption to penultimate sale under section 53 of the cst act. Section 7172 of the central sales tax act, 1956 and give the following particulars for this purpose. All these four appeals are being dealt with by this judgment as they all involve adjudication on a common question of law arising out of sections 3 and 6 of the central sales tax act, 1956 1956 act, which was operational at the material point of time.
Central salestax act, 1956 the finance bill, 2005 bill no. The following are the features of central sales tax act, 1956. Section 5 of the central sales tax act, 1956 taxation. Central salestax act, 1956 department of value added tax. Under the act the central sales tax act, 1956 department of. Central salestax act, 1956 the finance act, 2005 act no 18 of 20051 th may, 2005 be it enacted by parliament in the fiftysixth year of the republic of endia as follows. Sales in course of import and high seas sales under cst. The act provides for concessional rate of tax against furnishing of forms as prescribed. Article 246 governs the subject matter of the laws made by the parliament and by the legislature of tates. Section 52 of the central sales tax act, 1956 cst act read with. Sales in course of import and high seas sales under cst act, 1956. Scope the central sales tax act extends to the whole of india.
Where any dealer claims that he is not liable to pay tax under this act, in respect of any goods, on the ground that the movement of such goods from one state to another was occasioned by reason of transfer of such goods by him to any other place of his business or to his agent or principal, as the case may be, and not by reason of sale, the burden of proving that the movement of those goods. These civil appeals arise out of common judgment and decree dated 12th september 2008 passed by the high court of judicature at allahabad in second appeal no. Some important judicial decisions under mvat and cst sale in. It was enacted with the purport of laying down principles for levy, collection and distribution of tax on the sale or purchase of goods in interstate trade or commerce. The scheme grants 100% waiver of arrears of penalty and interest payable by a dealer under the karnataka sales tax act, 1957 and central sales tax act, 1956 relating to the assessments reassessments rectification orders. These rules may be called the central sales tax registration and turnover rules, 1957. Government of india law commission of india report no. Rules, 1957 to the best of my judgment without any further reference. Andhra pradesh court fees and suits valuation act, 1956. Originally, the rate of cst was 1%, which was increased to 2%, 3% and w.
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