JANATHA EXPELLER CO Vs. ASST COMMR SALESTAX

JUDGEMENT

(1.) The petitioners are registered dealers under the Kerala General Sales Tax Act, 1963 (the "K.G.S.T. Act") as well as under the Central Sales Tax Act, 1956 (the "Central Act"). They purchase copra within the State and produce oil and cake which they sell. In respect of such sales they pay sales tax under the K.G.S.T. Act as well as under the Central Act. The petitioners are aggrieved by Exts. P2 to P11 notices calling upon them to pay the additional tax Imposed under the Kerala Additional Sales Tax Ordinance (9 of 1978) in respect of the sales effected by them in the course of inter state trade. Ext. P2 which is identical to the other notices reads: -

(2.) The competent authority to levy tax under the Central Act in respect of interstate sale is the Central Government. Subject to this power of the Central Government, the tax payable under the Central Act shall be assessed or collected or payment thereof enforced by the authorities empowered to administer the K. G. S. T. Act. They shall exercise their power under the Central Act for and on behalf of the Central Government. The Central Act does not extend to sales which have taken place within the State. Nor does the K. G. S. T. Act or Act 20/1978 extend to levy authorised under the Central Act. Neither the State Government nor the Officers empowered under the K. G. S. T. Act can exercise power under the Central Act, except in so far as power is specifically granted under the Central Act. Save for the limited power recognised under S.8(5), the tax leviable under the Central Act cannot be varied by the State Government. By resort to Act 20/1978 the State Government cannot enhance the tax payable under the Central Act. This appears to be the scheme of the Act.

(3.) I shall now deal with the relevant provisions. S.8 of the Central Sales Tax Act reads: -