(1.) A few facts need be noticed in order to appreciate the point involved in the question referred to us by the Gujarat Sales Tax Tribunal (hereinafter referred to as "the Tribunal") at the instance of the Commissioner of Sales Tax for our opinion under section 61 of the Bombay Sales Tax Act, 1959.
(2.) IN the course of assessment of the period from 17th January, 1966, to Aso Vad 30 of S. Y. 2022 (corresponding date being 12th November, 1966), the assessee, who is opponent before us, had purchased cotton yarn worth Rs. 46,775 from registered dealers on payment of sales tax of Rs. 924. 50 on the said purchases. The assessee then made inter-State sales of such cotton yarn purchased from registered dealers on which the sales tax was paid. The Sales Tax Officer had levied sales tax at the rate of 2 per cent. on the aforesaid inter-State sales under the Central Sales Tax Act, 1956 (hereinafter referred to as "the Central Act") and an amount of Rs. 947. 20 was recovered from the assessee by way of Central sales tax. The assessee was, however, granted refund of the sales tax paid by the assessee to the registered dealers from whom he purchased cotton yarn under rule 47 of the Bombay Sales Tax Rules, 1959. The assessee had gone in appeal before the Assistant Commissioner of Sales Tax from the order of the Sales Tax Officer levying Central sales tax at the rate of 2 per cent. on the aforesaid inter-State sales. His contention in the course of appeal that no Central sales tax could be levied, found favour with the Assistant Commissioner, who directed the refund of the Central sales tax of Rs. 947. 20 levied on inter-State sales of the yarn. The Assistant Commissioner, however, in exercise of his suo motu revisional powers, called upon the assessee to show cause why refund of the amount of the sales tax of Rs. 924. 50 should not be withdrawn, since, in his opinion, the assessee was not entitled thereto as no Central sales tax was paid on inter-State sales by him. After hearing the assessee, the Assistant Commissioner withdrew the refund of the amount of sales tax of Rs. 924. 50. The assessee, being aggrieved with this order of the Assistant Commissioner, carried the matter in revision before the Gujarat Sales Tax Tribunal.
(3.) IT would be profitable to advert to the material parts of the relevant provisions of law which have a bearing on the point involved in the said question. They are section 15 of the Central Act, section 46b of the Bombay Sales Tax Act, 1953, section 44 of the Bombay Sales Tax Act, 1959, and rule 47 of the Bombay Sales Tax Rules, 1959. Section 15 of the Central Act has a chequered history. We need not go into the different vicissitudes from which the said section passed from time to time but we are concerned with the altered section as it emerged and placed on the statute book with effect from 1st October, 1958. Section 46b of the Bombay Sales Tax Act, 1953, was also simultaneously inserted in the Bombay Act by the Bombay Amending Act 71 of 1958 with effect from the same day as section 15 of the Central Act was put on the statute book, i. e. , 1st October, 1958. Section 44 of the Bombay Sales Tax Act, 1959, came on the statute book with effect from 1st January, 1960, that is, the date on which the Act of 1959 came into force. Rule 47 of the Bombay Sales Tax Rules, 1959, was enacted in exercise of the powers conferred by the Bombay Act of 1959. Section 15 of the Central Act, so far as relevant for our purposes provided as under : " 15. Every sales tax law of a State shall, in so far as it imposes or authorises the imposition of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely :- (a ). . . . . . . . . . . . . . . . . . . . . . . . . . (b) where a tax has been levied under that law in respect of the sale or purchase inside the State of any declared goods and such goods are sold in the course of inter-State trade or commerce, the tax so levied shall be refunded to such person in such manner and subject to such conditions as may be provided in any law in force in that State. "