The Hindu : Sales Tax Act to be amended

Online edition of India's National Newspaper
Wednesday, Oct 22, 2003

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Business

Sales Tax Act to be amended

By Our Special Correspondent

NEW DELHI OCT. 21. The Centre today decided to create 10 additional benches of the Income Tax Appellate Tribunal (ITAT) to speed up the disposal of pending cases, and to amend the Central Sales Tax Act in respect of an Appellate Authority. It was also decided to introduce a bill to regulate/prohibit the use of the state emblem by members of the public, including retired/former Government officials and former MPs unless authorised by the Central Government.

Briefing mediapersons after a Cabinet meeting, the Health and Parliamentary Affairs Minister, Sushma Swaraj, said that at present there were 53 benches in the country and it was felt that more were needed in order to clear the 1.80 lakh pending cases.

On the CST appellate tribunal, she said the distinction between the sale of a stock/consignment transfer had often given rise to disputes. Since CST was collected by the States where the goods originated, these disputes had arisen between States and also between a State and dealers regarding the jurisdiction, incidence and quantum of tax, etc. She said in view of the Supreme Court's directions, the Central Sales Tax Act was amended to provide for setting up of a CST Appellate Authority.

However, pending the creation of such an authority, the work was assigned to the Authority for the Advance Rulings set up under Section 245 (O) of the Income Tax Act. The State Governments had been expressing reservations over the setting up of the CST Appellate Authority.

In August this year, the apex court had directed that to fine-tune the CST Act certain amendments should be carried out by the next date of the hearing in six weeks time.

The list of amendments suggested said that only such disputes which related to both the Inter-State Sales and consignment/stock transfers would be referred to the CST Appellate Authority for adjudication; cases involving more than one State government in a dispute would also be included; imposition of double burden of tax on assesses was to be avoided; proceedings other than appeal such as revision would also be entertained by the authority and the order passed by the authority would be binding on each State Government concerned and the respective assessing authorities of all States/Union Territories would pass consequential orders or may issue such directions as were necessary to give effect to the order of the authority.

The proposed legislation on the state emblem of India would also prohibit its improper use for professional and commercial purposes and for matters connected therewith. It would also regulate the use of emblem by government functionaries.

The proposed legislation envisages punishment and fine for any person who contravenes its provisions.

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