2009 (1) TMI 829

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....x be levied under section 5A of the Punjab General Sales Tax Act, 1948? (ii) Whether, under the facts and circumstances of the case, the honourable Tribunal was justified in upholding the levy of interest under section 11D of the Punjab General Sales Tax Act, 1948 read with section 9(2) of the Central Sales Tax Act, 1956 on account of additional demand created by the revisional authority, even though the petitioner had paid the full amount of tax due as per returns filed and accepted by the assessing authority while framing assessment?" The facts, as per the statement of the Tribunal, are that the assessee is a registered dealer under the sales tax laws and is engaged in manufacturing/ upply of cycles and cycle parts. The Assessing Author....

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....v. Janatha Expeller Company [1987] 64 STC 435 (Ker) and Deputy Commissioner of Sales Tax v. Aysha Hosiery Factory (P.) Ltd. [1992] 85 STC 106 (SC). Being dissatisfied, the dealer approached this court and vide order dated July 29, 1996, the aforementioned questions of law have been referred for adjudication. We have heard the State counsel and have perused the record with her able assistance. In order to appreciate the controversy raised, it would be profitable to read section 8 of the Act, which is extracted below: "8. Rates of tax on sales in the course of inter-State trade or commerce.-(1) to (4) . . . . (5) Notwithstanding anything contained in this section, the State Government may on the fulfilment of the requirements laid down in....

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....der the Central Sales Tax Act would be payable by any dealer having his place of business in the State in respect of the sales by him in the course of inter-State trade or commerce. Once the aforesaid notification has been issued, then no additional tax would be payable by a dealer under section 5A of the Punjab General Sales Tax Act, 1948. Insofar as the State of Punjab is concerned, a notification effective from October 1, 1976 has been issued under section 8(5) of the Act in respect of the sales of bicycles, including their parts, accessories and attachments. The notification is reproduced hereunder for facility of reference: "Notification regarding rate of tax on inter-Sate sales of 'bicycles including their parts and accessories&....

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....te sales or purchases of goods in regard to which notification has been issued by the concerned State under section 8(5) of the Act fixing a specific lower rate by keeping in view the larger public interest. It is in this regard that the following observations made in Aysha Hosiery Factory (P.) Ltd. [1992] 85 STC 106 are relevant, which read thus (at page 112): ". . . However, sub-section (2A) of this section states that notwithstanding anything contained in clause (b) of sub-section (2) the tax payable under the Central Sales Tax Act by the dealer where the intra-State sale of the same under the 'sales tax law' of the State is 'exempt from tax generally or subject to tax generally at a rate which is lower than four per cent s....