TaxTMI 
TaxTMI 
1993 (7) TMI 314
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....x Act and the purchase turnover relating to inter-State sale of coconuts was granted exemption. The purchase turnover of coconuts was Rs. 4,52,984 and the sale turnover was Rs. 5,73,512. The assessment was completed on July 28, 1979. On the same day the assessing authority completed the assessment under the Central Sales Tax Act, 1956, levying tax at 3.3 per cent on the inter-State sales. Thereafter the assessing authority noticed that the turnover was assessed at a low rate and proposed to assess the turnover at 6.6 per cent. This was objected to by the assessee. According to him tax is leviable only at the rate of 3 per cent. Rejecting the contentions of the assessee the assessment was completed. Tax was levied at 6.6 per cent. The Appell....
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....ment made under the Central Sales Tax Act ignoring the Government notification issued in S.R.O. No. 350/65 is sustainable in law? and (ii) What is the rate at which the turnover has to be assessed? On both these issues the Tribunal entered a finding against the assessee. On hearing the submissions on both sides we see no error of law in the order of the Tribunal. 5.. The main contention advanced by learned counsel for the petitioner is that tax should have been levied only at the lower rate of 3 per cent under section 8(2A) of the Central Sales Tax Act. Section 8 of the Act deals with rates of tax on sales in the course of inter-State trade or commerce. A classification is made in that section in respect of inter-State sales to Governmen....
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.... of section 8. That subsection reads: "Notwithstanding anything contained in sub-section (1A) of section 6 or sub-section (1) or clause (b) of sub-section (2) of this section, the tax payable under this Act by a dealer on his turnover in so far as the turnover or any part thereof relates to the sale of any goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate State, exempt from tax generally or subject to tax generally at a rate which is lower than four per cent (whether called a tax or fee or by any other name), shall be nil or, as the case may be, shall be calculated at the lower rate. Explanation.-For the purposes of this sub-section a sale or purchase of any goods shall not be....
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....he goods were sold to a registered dealer. The sales were not supported by form "C" declarations. The Tribunal has not therefore committed any error in finding that the rate of tax leviable is twice the rate applicable to the sale or purchase of such goods inside the State of Kerala. The finding that subsection (2A) providing for exemption or payment of tax at a lower rate does not cover the transactions falling under section 8(2)(a) is therefore justified and does not call for interference. 8.. For the assessment years 1978-79 and 1979-80 tax payable under the Kerala General Sales Tax Act on purchase of coconuts is 3 per cent. The tax which was earlier levied at the rate of 4 per cent was reduced to 3 per cent with effect from August 30....