Inter-State sales tax under Section 8(2) excludes State minimum turnover exemption and treats licence fee as tax.

Section 8(2) of the Central Sales Tax Act is read to require inter-State sales tax to be computed at the same rate and in the same manner as corresponding intra-State sales, without importing the State law minimum turnover exemption available to dealers. The text treats the words "at the same rates and in the same manner" as governing the method of calculation as well as the rate, and applies the plain meaning of the fiscal provision. It also states that licence fee leviable under the Mysore Sales Tax laws falls within "tax" for section 8, so the matter was to be determined on that basis and remitted for fresh consideration.

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Issues: (i) Whether, under section 8(2) of the Central Sales Tax Act, the tax on inter-State sales must be calculated at the same rate and in the same manner as if the sales had taken place inside the appropriate State, without applying the State law minimum turnover exemption applicable to dealers; (ii) Whether licence fee leviable under the Mysore Sales Tax laws is "tax" within the meaning of section 8 of the Central Sales Tax Act.

Issue (i): Whether, under section 8(2) of the Central Sales Tax Act, the tax on inter-State sales must be calculated at the same rate and in the same manner as if the sales had taken place inside the appropriate State, without applying the State law minimum turnover exemption applicable to dealers.

Analysis: The expression "at the same rates and in the same manner" was held to govern the calculation of tax and not merely the rate. The deemed liability clause in section 8(2) was understood as removing the State-law exemption available to a dealer, because the Central levy is confined to inter-State sales and the rationale for a minimum turnover threshold under the State law does not apply with equal force. The construction urged on behalf of the revenue was rejected as inconsistent with the words used in the provision and with the principle that fiscal liability must be found within the letter of the statute.

Conclusion: The issue was answered in favour of the petitioner. Section 8(2) applies without importing the State law minimum turnover exemption, and the disputed inter-State sales are taxable at the same rate and in the same manner as corresponding intra-State sales.

Issue (ii): Whether licence fee leviable under the Mysore Sales Tax laws is "tax" within the meaning of section 8 of the Central Sales Tax Act.

Analysis: The licence fee was treated as falling within the expression "tax" for the purposes of section 8. The contrary view taken by the Tribunal was held to be incorrect, and the matter was directed to be determined on the footing that the licence fee is tax within the meaning of the Central enactment.

Conclusion: The issue was answered in favour of the petitioner. The licence fee is "tax" within section 8.

Final Conclusion: The revision matters were disposed of by applying section 8 of the Central Sales Tax Act to the disputed transactions and by remitting the matters to the Tribunal for fresh determination in accordance with the legal position declared.

Ratio Decidendi: In construing a fiscal statute, the plain words of the provision control, and under section 8(2) of the Central Sales Tax Act the tax on inter-State sales is to be computed as if the sale had occurred inside the State, excluding the dealer exemption based on minimum turnover under the State law.

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