(A) Delhi Sales Tax Act, 1975, Section 4(1) – Central Sales Tax Act, 1956, Section 14 and 15 – Constitution of India, Articles 266 to 269 – Sales Tax – Demand – Demand made for the period between 15th January 2000 and 31st March 2000 – During the said period, silk fabric was a part of Schedule I of the DST Act, on which sales tax was leviable at the rate of 12% – Sections 14 and 15 of the Central Sales Tax Act were deleted by Act No. 18 of 2017 – Section 14, before its deletion, declared certain goods specified therein as of special importance in inter-state trade or commerce – Until 11th May 1968, item (xi) was incorporated in Section 14, which covered the item of “silk sarees”- However, with effect from 11th May 1968, the said item was deleted by Act No. 19 of 1968 – Section 15(1) of the CST Act, as existed during the period for which the impugned assessment was made, provided that the local sales tax rate on declared goods should not exceed 4% of the sale or purchase price of such goods – So long as the silk fabric was a part of the list of declared goods under Section 14 of the CST Act, the sales tax levy under the DST Act could not have exceeded 4% in view of Section 15(1) of the CST Act – However, silk fabric was deleted from the list contained in Section 14 of the CST Act, effective 11 May 1968 – Held that during the relevant period for which the impugned assessment order was issued, as silk fabric was not a part of the list under Section 14, there was no embargo on levying sales tax on silk fabric at a rate exceeding 4%. Therefore, the argument based on Section 15(1) of the CST Act will not help the appellant. (Para 5 and 6)
(B) Delhi Sales Tax Act, 1975, Section 4(1) – Additional Duties of Excise (Goods of Special Importance) Act, 1957, item no.50.05 of the First Schedule – Sales tax – Demand – Second Schedule of the ADE Act provides that during each financial year, each State shall be paid a certain percentage of net proceeds of the additional duties levied and collected during the financial year in respect of the goods described in column (3) of Schedule I – However, no additional duty was made payable on silk fabric under the ADE Act – The proviso makes it clear that notwithstanding the ADE Act, there is no bar on the States levying sales tax – If the States do that, no part of the additional duty under the ADE Act will be payable to the concerned States – Argument that as silk fabric formed a part of Schedule I of the ADE Act, it disentitled the State Government from levying sales tax held to be fallacious and cannot be accepted. (Para 8)
SUPREME COURT OF INDIA
2024 STPL(Web) 192 SC
[2024 INSC 240]
SAREE SANSAR Vs. GOVT. OF NCT OF DELHI & ORS.
Civil Appeal No. 3774 of 2011-Decided on 21-03-2024
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