Case Law Details
Case Name : M/s Jamuna Das Ram Kishan Vs Commissioner of Sales Tax (Delhi High Court)
Related Assessment Year :
Courts :
All High Courts Delhi High Court
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We are of opinion that there is ample power under section 5A of the State Act enabling the Chief Commissioner to specify the single point at which tax may be levied in a series of sales. This can, however, be done by him only by a notification in the Official Gazette. No such notification has been placed before us which could relate to the assessment year under consideration.
We hold therefore that a vital prerequisite of section 15 of the Central Sales Tax Act, namely, that the tax shall not be levied at more than one stage,
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In a case of Interstate sales, we have following query –
1. Company B in Gujarat has got a order from Company A in Gujarat for Supply of Heat Exchangers (Capital Goods)
2. Company B in turn has placed an order on Vendor C in Haryana for supply of the said Capital Goods.
3. B has free-issued SS tubes to C for incorporation in the Heat Exchanger.
4. B intends to follow 6(2) sales (In transit Sale) for the transaction : C will charge CST @ 2% a/g C form from B, B will in turn sell to A with Nil CST under 6(2) against C Form from A.
ED will be charged by C on the Order Value of B + Value of Free Issue Material, CST will be calculated on Order Value of B + ED only.
QUERY: IN this scenario where Free issue material is involved, can B take 6(2) sales benefit and charge 0% CST to A or GVAT becomes applicable? Pls clarify.