2014 (9) TMI 911

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....e Central Sales Tax Act it made sales of various items to the canteen stores department in Assam during four quarters ending 31st December, 2003. The sale value was Rs. 10,18,30,914/-. Chargeable Central Sales Tax was @ 4%. The writ petitioner also regularly made sales under West Bengal Sales Tax Act. I would like to say this at the outset, that undisputedly collection of 4% Central Sales Tax and State Sales Tax or VAT is credited directly into the consolidated fund of the State. This was observed in Cotmac Private Limited Vs. Commercial Tax Officer , 20 STC 20, by a Division Bench of the Mysore High Court as follows:- "It is not possible, in our opinion, to adjust the tax refundable under one Act against Tax due under another A....

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....he Central Sales Tax and State Sales Tax are directly credited into the Consolidated Fund of the State. Nevertheless, Central Sales Tax is an item under list I entry 92A of the Seventh Schedule to the Constitution over which Parliament has exclusive power to legislate and Sales Tax falls under list II entry 54 over which the State Legislature has exclusive power. A Division Bench of the High Court of Mysore in Cotmac Private Ltd. vs. Commercial Tax Officer, 1st Circle Hubli and Another expressed an opinion quoted above which if applied here without going into the facts, would have been fatal for the writ petitioner. But on a close scrutiny of the facts it appears that in that case reliance was placed on a proviso to rule 20 of the Mysore....

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.... two taxes are credited into the same fund it creates a gross credit in the fund. Similarly, short payment of Central Sales Tax in circumstances above into a fund against a corresponding increased payment of State Sales Tax into it does not reduce the gross credit. Therefore, if a dealer wants adjustment or set off, it is to be readily granted without insisting on any formalities. There is no question of charging any interest, penalty etc. provided the deposits were made concurrently. Interest is a kind of damages which a person claims for loss of money, according to Bhai Jaspal Singh and Another Vs. Assistant Commissioner of Commercial Taxes and Others reported in (2011) 1 SCC 39 and Indodan Industries Ltd. Vs. State of U.P. and Others rep....