TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 553
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....ollector of Central Excise, Hyderabad Vs. Vazir Sultan Tobacco Co. Ltd., reported in 1996 (83) E.L.T.3(S.C) is not relevant. In the above case, the Hon'ble Supreme Court has merely held that adoption of provision of one fiscal statute does not mean that tax is payable under the adopting Act wherever it is payable under the adopted legislation. The case dealt with levy of excise duty under Section 3 of the Central Excise and Salt Act, 1944 as it stood then and the rules made thereunder. The Court merely held nil rate of duty is also a rate of duty following its ratio in Wallace Flour Mills Company Limited Vs. Collector or Central Excise, 1989 (4) SCC 592. 12. The Hon'ble Supreme Court in Vazir Sultan Tobacco Company Limited's case (cited supra) further held that once the levy is not there at the time when the goods are manufactured or produced in India, it cannot be levied at the state of removal of the said goods. The idea of collection at the stage of removal is devised for the sake of convenience. 13. The Court dealt with Special Excise Duty. It held that the idea of collection at the stage of removal is devised for the sake of convenience. It is not as if the lev....
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....e read to shift the levy from the stage of manufacture or production of goods to the stage of removal. The levy is and remains upon the manufacture or production alone. Only the collection part of it is shifted to the stage of removal. Once this so, the fact that the provisions of the Central Excise Act are applied in the matter of levy and collection of special excise duty cannot and does not mean that wherever the Central Excise duty is payable, the Special Excise duty is also payable automatically. 16. Thus, the said decisions is of no relevance to the facts of the present case. Similarly, the decisions of the Hon'ble Supreme Court in Collector of Central Excise, Bombay VS. Polyset Corporation reported in 2000 (115) E.L.T. (S.C) is also not relevant to the facts of the case. 17. As far as the present case, the product traded and sold by the petitioner was exempt in terms of 26th Item in Sl.No.121 to the Schedule to the Tamil Nadu Value Added Tax (TNVAT) Act, 2006 and under Sections 8(2) and 9(2) of the CST Act, 1956. 18. Under Section 9(2) of the CST Act, subject to the other provisions of the Act and the Rules made thereunder, the authorities who are empowered to asse....
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....g of goods for sale. (d) are containers or other materials used for the packing of any goods or classes of goods specified in the certificate or registration referred to in clause (b) or for the packing of any containers or other materials specified in the certificate of registration referred to in clause (c). Note: * omitted by Act 8 of 1963, with effect from 01.04.1963." 21. In this case, we are not concerned with either of the situation contemplated in Sub-Section (1), Sub- Section (3) or Sub-Section (8) to Section 8 of the CST Act. 22. Thus, the applicable provision would be Sub- Section (2) to Section 8 of the CST Act. Sub-Section 1 and Sub-Section 2 to Section 8 of the CST Act are reproduced below for the sake of clarity:- Sub-Section (1) Sub-Section (2) Every dealer, who in the course of interstate trade or commerce, sells to a registered dealer goods of the description referred to in Sub- Section (3), shall be liable to pay tax under the Act, which shall be 3% of his turnover or at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State, whichever is lower: Provided that the Central Government ....
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.... goods or classes of goods as may be specified in the notification, or that the tax on such sales shall be calculated at such lower rates than those specified in Sub-Section (1) as may be mentioned in the notification. (b) that in respect of all sales of goods or sales of such classes of goods as may be specified in the notification, which are made, in the course of interstate trade or commerce, to a registered dealer by any dealer having his place of business in the State or by any class of such dealers as may be specified in the notification to any person or to such class of persons as may be specified in the notification, no tax under the Act shall be payable or the tax on such sales shall be calculated at such lower rates than those specified in Sub-Section (1) as may be mentioned in the notification. 27. Similarly, the proviso to Sub-Section (8) to Section 8 of the CST Act, will also not apply to any sale of goods made in the course of interstate trade or commerce unless the dealer selling such goods furnishes to the prescribed authority referred to in Sub- Section (4), a declaration in the prescribed manner on the prescribed form obtained from the authority specified by t....