Concessional inter-State sales tax notifications block added surcharge under the CST Act when no higher levy basis is shown.

A concessional notification under the Central Sales Tax regime fixed a lower rate for inter-State sales and dispensed with Form C for sales outside Rajasthan. The text explains that once tax is validly payable at the notified rate in public interest, no additional surcharge or extra sales tax can be superadded. It also notes that no basis was shown to bring the transactions within the higher-levy provision relied on by the revenue. The surcharge was therefore treated as not leviable on the inter-State turnover, and the appellate deletion of that surcharge was stated to be in accordance with law.

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Issues: Whether surcharge or additional tax was leviable on inter-State sales covered by the notification prescribing a four per cent rate under the Central Sales Tax Act and the Rajasthan Sales Tax Act.

Analysis: The notification dated 7 March 1994 prescribed a four per cent rate for similarly situated dealers and also dispensed with the requirement of form C for sales outside Rajasthan. The appellate authorities found that the assessee had paid tax at the notified rate and that no case was made out for invoking any higher levy. The Court relied on the settled position that where tax is payable under section 8(5) of the Central Sales Tax Act, 1956, and a lower rate is fixed in public interest, additional sales tax or surcharge cannot be superadded. It also noted that no basis was shown to bring the case within section 8(3) of the Central Sales Tax Act, 1956.

Conclusion: Surcharge was not leviable on the assessee's inter-State turnover, and the deletion of the surcharge by the appellate authorities was in law.

Final Conclusion: The revision failed, as the concurrent factual and legal findings that no additional surcharge could be imposed were upheld.

Ratio Decidendi: Where inter-State sales are taxed under a valid section 8(5) notification fixing a concessional rate, additional surcharge or additional sales tax cannot be imposed over and above that notified rate.

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