KHEMKA AND COMPANY AGENCIES PVT LIMITED STATE OF MYSORE Vs. STATE OF MAHARASHTRA: GULDAS NARASAPPA THIMMAIAH OIL MILLS

JUDGEMENT

(1.) These appeals raise the question as to whether the assessees under the Central Sales Tax Act, 1956 hereinafter referred to as the Central Act could be made liable for penalty under the provisions of the State Sales Tax Act hereinafter referred to as the State Act. The penalty imposed under the State Act is for default in payment of taxes within the prescribed time.

(2.) The Central Act states in section 9 (1) that the tax payable by any dealer under the Central Act on sales of goods effected by him in the course of inter-state trade or commerce shall be levied by the Government of India and the tax so levied shall be collected by that Government in accordance with the provisions of sub-section (2) in the State from which the movement of goods commenced. Section 9 (2) of the Central Act is as follows

(3.) Section 6 of the Central Act provides for liability to tax on inter-State Sales. Section 8 of the Central Act provides for rates of tax on Sales in the course of inter State trade or commerce. section 9 of the Central Act provides for collection of tax and penalties.