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Untitled Document
MINISTRY
OF FINANCE
( Department of Revenue)
NOTIFICATION
NO
1/2007-CST.,
Dated: March 29, 2007
S.O.
464(E)- In exercise of the powers conferred by sub-section (2)
of section 1 of the Taxation Laws (Amendment) Act, 2007(16 of 2007), the
Central Government hereby appoints the 1st day of April, 2007, as the date
on which the said Act shall come into force.
F.No.34/135/2005-ST
R
G CHHABRA
Under Secy
MINISTRY
OF LAW AND JUSTICE
(Legislative Department)
New
Delhi, the 28th March, 2007
The following Act of Parliament received the
assent of the President on the 26th March, 2007, and is hereby published for
general information:-
THE
TAXATION LAWS (AMENDMENT) ACT, 2007
No.
16 OF 2007
[26th
March, 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 Repulic of India
as follows:-
Chapter
I
Preliminary
Short
title and commencement.
1.
(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
Amendment
of section 6
2.
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—
(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 or 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.”
Amendment
of section 7.
3.
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.
Amendment
of section 8.
4.
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 his 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 insofar 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 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.
Amendment
of section 9.
5.
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.
Amendment
of section 10.
6.
In section 10 of the principal Act, in clause (a), the words “certificate
or” shall be omitted.
Amendment
of section 10A.
7.
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.
Amendment
of section 14.
8.
In section 14 of the principal Act, clause (ix) shall be omitted.
Chapter
III
Additional Duties of Excise
Omission
of section 4.
9.
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.
Amendment
of First Schedule.
10.
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.
Omission
of Second Schedule.
11.
In the Additional Duties of Excise Act, the Second Schedule shall be omitted.
K
N CHATURVEDI
Secy. to the Govt. of India
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