Central sales tax appeals may be subject to State-law payment preconditions, and unequal State appeal rules do not automatically violate Article 14.

Section 9(3) of the Central Sales Tax Act applies the relevant State sales tax machinery to assessment, collection, enforcement, and connected appellate matters, including appeals, reviews, revisions and similar proceedings. On that construction, a State-law requirement of proof of tax payment before an appeal is entertained can operate in Central Sales Tax appeals, even if the condition is substantive in character. The article further notes that variation between State appeal conditions does not, by itself, establish discrimination under Article 14, because the Central Sales Tax Act contemplates reliance on the appropriate State law for such matters. The stated result is that the challenge to the appellate precondition fails.

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Issues: (i) Whether the requirement under the State sales tax law of proof of payment of tax as a condition for entertaining an appeal applies to appeals under the Central Sales Tax Act by virtue of section 9(3). (ii) Whether the differing appeal conditions in State sales tax laws render the impugned requirement discriminatory and violative of Article 14.

Issue (i): Whether the requirement under the State sales tax law of proof of payment of tax as a condition for entertaining an appeal applies to appeals under the Central Sales Tax Act by virtue of section 9(3).

Analysis: Section 9(3) of the Central Sales Tax Act makes the State machinery and the provisions of the appropriate State sales tax law applicable for assessment, collection, enforcement of payment, and for matters relating to returns, appeals, reviews, revisions, references, penalties, and compounding of offences. The language is comprehensive and is not confined to merely procedural rules. The State provision requiring proof of payment of tax before an appeal is entertained, though substantive in character, falls within the provisions made applicable by section 9(3). The Act therefore authorises the Tribunal to insist on compliance with that requirement.

Conclusion: The condition is applicable to appeals under the Central Sales Tax Act and is valid.

Issue (ii): Whether the differing appeal conditions in State sales tax laws render the impugned requirement discriminatory and violative of Article 14.

Analysis: Article 14 is offended only when the statute itself creates an impermissible classification. Mere variation between the sales tax laws of different States does not amount to constitutional discrimination, because the Central Sales Tax Act itself contemplates application of the relevant State law for levy, collection, and connected appellate matters. The scheme of the Act, read with the constitutional allocation of legislative power over inter-State sales, permits diversity in State enactments. The alleged inequality is therefore not attributable to the Central Sales Tax Act.

Conclusion: The challenge based on Article 14 fails.

Final Conclusion: The petitioner's challenge to the appellate precondition under the State sales tax law was rejected, and the writ petition was dismissed with costs.

Ratio Decidendi: Where the Central Sales Tax Act adopts the provisions of the appropriate State sales tax law for appeals and connected matters in comprehensive terms, even a substantive condition attached to the entertainment of an appeal becomes applicable, and mere differences among State enactments do not by themselves establish discrimination under Article 14.

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