TaxTMI Login
AI Drafter ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the rate of sales tax on cotton fabrics for the quarter ending 30 June 1958 was required to be reduced to 2 per cent.; (ii) whether the restrictions and conditions in section 15 of the Central Sales Tax Act, 1956 applied for the quarter ending 30 June 1958, although that provision came into force later.
Issue (i): Whether the rate of sales tax on cotton fabrics for the quarter ending 30 June 1958 was required to be reduced to 2 per cent.
Analysis: Cotton fabrics were declared goods of special importance in inter-State trade or commerce. Section 7 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 expressly provided that, from 1 April 1958, State sales tax laws in so far as they imposed tax on declared goods would be subject to the restrictions and conditions specified in section 15 of the Central Sales Tax Act, 1956. The later actual commencement of section 15 did not control the operation of the express statutory mandate in section 7.
Conclusion: The reduction of sales tax to 2 per cent. for the quarter ending 30 June 1958 was and justified.
Issue (ii): Whether the restrictions and conditions in section 15 of the Central Sales Tax Act, 1956 applied for the quarter ending 30 June 1958, although that provision came into force later.
Analysis: Parliament enacted section 7 of the 1957 Act with knowledge that the Central Sales Tax Act was on the statute book and that section 15 had not yet commenced. By making the State sales tax laws subject from 1 April 1958 to the restrictions in section 15, Parliament intended those restrictions to operate from that date irrespective of the actual commencement of section 15 itself on 1 October 1958.
Conclusion: The restrictions and conditions in section 15 applied from 1 April 1958 for declared goods, including the quarter ending 30 June 1958.
Final Conclusion: The reference was answered in favour of the assessee, and the Tribunal's view was upheld on both questions.
Ratio Decidendi: Where a later statute expressly makes an earlier date operative for the application of restrictions in another enactment, the express legislative mandate prevails even if the referenced provision commences only at a later date.
TaxTMI 
