PROPOSED AMENDMENTS TO CENTRAL SALES TAX FOR APPEALS AGAINST THE ORDERS PASSED BY THE HIGHEST APPELLATE AUTHOIRTY.

Below are the extracts from Union Budget 2010 – 2011 related to Central Sales Tax – as found relevant to Bombay Sales Tax and Maharashtra VAT.

UNION BUDGET 2010 -2011

[Extract of Finance Bill 2010 as introduced in the Parliament on 27 Feb 2010] 

79. In section 20 of the Central Sales Tax Act, for sub-section (1) and the Explanation thereunder, the following sub-section shall be substituted, namely:—

 “(1) An appeal shall lie to the Authority against any order passed by the highest appellate authority of a State under this Act determining issues relating to stock transfers or consignments of goods, in so far as they involve a dispute of inter-State nature.”. 

80. In section 22 of the Central Sales Tax Act,—

 (a) for the word “pre-deposit”, wherever it occurs, the word “deposit” shall be substituted;

 (b) after sub-section (1A), the following sub-section shall be inserted, namely:—

 “(1B) The Authority may issue direction for refund of tax collected by a State which has been held by the Authority to be not due to that State, or alternatively, direct that State to transfer the refundable amount to the State to which central sales tax is due on the same transaction: 

Provided that the amount of tax directed to be refunded by a State shall not exceed the amount of central sales tax payable by the appellant on the same transaction.”. 

81. In section 25 of the Central Sales Tax Act, the proviso to sub-section (2) shall be omitted.

 NOTES ON CLAUSES OF AMENDMENTS

[as proposed in the Finance Bill 2010]

 Clause 79 of the Bill seeks to amend section 20 of the Central Sales Tax Act, by substituting sub-section (1) thereof to provide that an appeal shall lie to the Authority against any order passed by the highest appellate authority of a State under this Act determining issues relating to stock transfers or consignments of goods, in so far as they involve a dispute of inter-State nature and to omit the Explanation thereunder.

 Clause 80 of the Bill seeks to amend section 22 of the Central Sales Tax Act, so as to –

(a) substitute the word “pre-deposit”, wherever it occurs, with the word “deposit”; and

(b) to insert a new sub-section (1B) to provide for the authority to issue direction for refund of tax collected by a State.

 Clause 81 of the Bill seeks to amend section 25 of the Central Sales Tax Act, so as to omit the proviso to sub-section (2) of that section.

 Explanatory memorandum

[to Finance Bill 2010]

 O. AMENDMENTS IN CENTRAL SALES TAX ACT 1956

 The provisions of CST Act are being amended so as to provide for :

[i]     – - – -.

[ii]    – - – -

[iii]  filing of appeal against any order passed by the highest appellate authority of a State on disputes of interstate nature relating to stock transfer or consignments of goods to the CST Appellate Authority.

The above changes will come in to effect on enactment of the Finance Bill.

Written by ntnirale on February 27th, 2010 with comments disabled.
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