1982 (12) TMI 163

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....r-State transactions of sale of cotton. With respect to a turnover of Rs. 9,50,201.57, it showed the Central sales tax collected by it separately in the bills. The authorities have, in the light of the proviso to section 8A(1), taken into account only the net turnover for the purpose of levying the Central sales tax. With respect to the turnover of Rs. 76,71,405.75 however the petitioner did not show the Central sales tax separately in its bills, but claimed deduction on account of Central sales tax in accordance with the formula contained in section 8A(1). Its contention was that irrespective of the fact whether the turnover is shown to be inclusive of Central sales tax or not, it is entitled to such deduction. This has been negatived by t....

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....e from the aggregate of the sale prices, namely: (a) the amount arrived at by applying the following formula: rate of tax x aggregate of sale prices ----------------------------------------------------100 plus rate of tax. Provided that no deduction on the basis of the above formula shall be made if the amount by way of tax collected by a registered dealer in accordance with the provisions of this Act has been otherwise deducted from the aggregate of the sale prices....................................." Section 8A was introduced by Amendment Act No. 28 of 1969 with retrospective effect from 5th January, 1957. Earlier to the Amendment Act, rule 11(2) of the Central Sales Tax Rules provided for a similar deduction. Before we....

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....er arrived at is called the net turnover, upon which Central sales tax is levied and collected. For the purpose of separating or deducting, as it may be called, the Central sales tax component from the aggregate sale price, in cases where the Central sales tax is not otherwise deducted, section 8A prescribed a formula, viz., rate of tax x aggregate of sale prices ----------------------------------------------------- 100 plus rate of tax. The proviso makes it clear that the above formula shall not apply if the amount collected by way of Central sales tax by a dealer has been otherwise deducted from the aggregate of sale price. The language as well as the object underlying the formula makes it clear that it applies only where Cent....