Retrospective central sales tax amendment made inter-State sales taxable under the Central Act despite different State law treatment.

A retrospective amendment to the Central Sales Tax Act altered the basis of liability for inter-State sales, so that taxability under the Central Act was no longer displaced by the treatment of the same sales under the Kerala sales tax law. The amended scheme substituted the turnover definition, inserted section 6(1A), and aligned section 9 so that liability arose under the Central Act while assessment and collection could be carried out through the State machinery. Assessment made without applying the amended provisions could not stand, and the matter was remitted for fresh reassessment under the amended regime.

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Issues: Whether, in view of the Central Sales Tax (Amendment) Ordinance, 1969, the turnover from inter-State sales of eggs was liable to tax under the Central Sales Tax Act, 1956 notwithstanding that under the Kerala General Sales Tax Act such sales were taxable only at the last point of purchase in the State.

Analysis: The Ordinance retrospectively amended the Central Sales Tax Act, 1956 by substituting the definition of turnover, inserting section 6(1A), and reworking section 9 so that the liability to tax on inter-State sales was governed by the Central Act, while the machinery for assessment and collection was supplied by the State sales tax law. The earlier view that non-taxability under the State law excluded liability under the Central Act could no longer stand after the retrospective amendments. Since the assessment had not been made in accordance with the amended provisions, the orders of the sales tax authorities and the High Court could not be sustained.

Conclusion: The turnover from inter-State sales was liable to be assessed under the Central Sales Tax Act as amended by the Ordinance, and the matter had to be sent back for fresh assessment.

Final Conclusion: The earlier assessment order was set aside and the case was remitted to the Sales Tax Officer for reassessment in accordance with the amended Central sales tax regime.

Ratio Decidendi: A retrospective amendment to the Central Sales Tax Act can impose liability on inter-State sales even where the corresponding intra-State sales are not taxable under the State law, and the State machinery may be used for assessment and collection under the Central Act.

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