G.1070/2007/DTP.
GOVERNMENT OF KERALA
Law (Legislation-Publication) Department
NOTIFICATION
No. 22387/Leg. Pbn.3/2007/Law. Dated, Thiruvananthapuram, 11th October 2007.
The following Act of Parliament, published in the Gazette of India,
Extraordinary, Part II, Section I, dated the 28th March 2007 is hereby republished
for general information. The Bill as passed by the Houses of Parliament received
the assent of the President on the 26th March 2007.
By order of the Governor,
P. S. GOPINATHAN,
Law Secretary.
Kerala Gazette No. 51 dated 25th December 2007.
PART I
Section i
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THE TAXATION LAWS (AMENDMENT) ACT, 2007
(ACT No. 16 OF 2007)
AN
ACT
further to amend the Central Sales Tax Act, 1956 and the Additional
Duties of Excise (Goods of Special Importance) Act, 1957.
BE it enacted by Parliament in the Fifty-eighth Year of the Republic of
India as follows:—
CHAPTER I
PRELIMINARY
1.
Short title and commencement.— (1) This Act may be called the Taxation
Laws (Amendment) Act, 2007.
(2)
It shall come into force on such date as the Central Government may,
by notification in the Official Gazette, appoint.
CHAPTER II
CENTRAL SALES TAX
2.
Amendment of section 8.—In the Central Sales Tax Act, 1956 (74 of 1956)
(hereinafter in this Chapter referred to as the principal Act), in section 6, for sub-
section (2), the following sub-section shall be substituted, namely:—
“(2) Notwithstanding anything contained in sub-section (1) or sub-
section (1A), where a sale of any goods in the course of inter-State trade or
commerce has either occasioned the movement of such goods from one State
to another or has been effected by a transfer of documents of title to such
goods during their movement from one State to another, any subsequent
sale during such movement effected by a transfer of documents of title to
such goods to a registered dealer, if the goods are of the description referred
to in sub-section (3) of section 8, shall be exempt from tax under this Act :
Provided that no such subsequent sale shall be exempt from tax
under this sub-section unless the dealer effecting the sale furnishes to the
prescribed authority in the prescribed manner and within the prescribed time
or within such further time as that authority may, for sufficient cause,
permit,—
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(a)
a certificate duly filled and signed by the registered dealer
from whom the goods were purchased containing the prescribed particulars
in a prescribed form obtained from the prescribed authority ; and
(b)
if the subsequent sale is made to a registered dealer, a
declaration referred to in sub-section (4) of section 8:
Provided further that it shall not be necessary to furnish the
declaration referred to in clause (b) of the preceding proviso in respect of a
subsequent sale of goods if,—
(a)
the sale of purchase of such goods is, under the sales tax
law of the appropriate State exempt from tax generally or is subject to tax
generally at a rate which is lower than three per cent. or such reduced rate
as may be notified by the Central Government, by notification in the Official
Gazette, under sub-section (1) of section 8 (whether called a tax or fee or by
any other name) ; and
(b)
the dealer effecting such subsequent sale proves to the
satisfaction of the authority referred to in the preceding proviso that such
sale is of the nature referred to in this sub-section.”.
3.
Amendment of section 7.—In section 7 of the principal Act, in
sub-section (2A), for the words, brackets, letter and figures “clause (a) of
sub-section (4) of section 8”, the words, brackets and figures “sub-section (4) of
section 8” shall be substituted.
4.
Amendment of section 8.—In section 8 of the principal Act,—
(a)
for sub-sections (1) and (2), the following sub-sections shall be
substituted, namely:—
“(1) Every dealer, who in the course of inter-State trade or commerce,
sells to a registered dealer goods of the description referred to in
sub-section (3), shall be liable to pay tax under this Act, which shall be
three per cent. of this turnover or at the rate applicable to the sale or
purchase of such goods inside the appropriate State under the sales tax law
of that State, whichever is lower :
Provided that the Central Government may, by notification in the Official
Gazette, reduce the rate of tax under this sub-section.
(2)
The tax payable by any dealer on his turnover in so far as the
turnover or any part thereof relates to the sale of goods in the course of
inter-State trade or commerce not falling within sub-section (1), shall be at
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the rate applicable to the sale or purchase of such goods inside the
appropriate State under the sales tax law of that State.
Explanation.—For the purposes of this sub-section, a dealer shall be
deemed to be a dealer liable to pay tax under the sales tax law of the
appropriate State, notwithstanding that he, in fact, may not be so liable
under that law.’’;
(b)
in sub-section (3), in the opening portion, for the words,
brackets, figure and letter “The goods referred to in clause (b) of sub-
section (1)”, the following shall be substituted, namely:—
“The goods referred to in sub-section (1),—”;
(c)
for sub-section (4), the following shall be substituted, namely:—
“(4) The provisions of sub-section (1) shall not apply to any
sale in the course of inter-State trade or commerce unless the dealer selling
the goods furnishes to the prescribed authority in the prescribed manner a
declaration duly filled and signed by the registered dealer to whom the
goods are sold containing the prescribed particulars in a prescribed form
obtained from the prescribed authority :
Provided that the declaration is furnished within the prescribed time
or within such further time as that authority may, for sufficient cause,
permit.”;
(d) In sub-section (5), in clauses (a) and (b), the words “or the
Government” and the words, brackets and figure “or sub-section (2)”,
wherever they occur, shall be omitted.
5.
Amendment of section 9.—In section 9 of the principal Act, in
sub-section (1), in the proviso, in clause (a), for the words, letter, brackets
and figures “clause (a) of sub-section (4) of section 8”, the words, brackets
and figures “sub-section (4), of section 8”shall be substituted.
6.
Amendment of section 10.—In section 10 of the principal Act, in
clause (a), the words “certificate or” shall be omitted.
7.
Amendment of section 10A.—In section 10A of the principal Act, in
sub-section (2), in clause (a), for the words, letter, brackets and figures
“clause (a) of sub-section (4) of section 8”, the words, brackets and figures
“sub-section (4) of section 8” shall be substituted.
8.
Amendment of section 14.—In section 14 of the principal Act,
clause (ix) shall be omitted.
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CHAPTER III
ADDITIONAL DUTIES OF EXCISE
9.
Omission of section 4.—In the Additional Duties of Excise (Goods of
Special Importance) Act, 1957 ( 58 of 1957) (hereinafter referred to as the
Additional Duties of Excise Act), section 4 shall be omitted.
10.
Amendment of First Schedule.—In the Additional Duties of Excise Act,
in the First Schedule, headings 2401, 2402 and 2403, and sub-headings and tariff
items thereunder, and the entries relating thereto shall be omitted.
11.
Omission of Second Schedule.—In the Additional Duties of Excise Act,
the Second Schedule shall be omitted.
G.1070/2007/DTP.