The division judge bench of Justice M.R. Shah and Justice Krishna Murari of the supreme court of India in the case of Tata Motors Limited Vs Central Sales Tax Appellate Authority & Ors held that the transaction is for the period prior to insertion of Section 22(1B) to the Act 1956 and the impugned order has been passed by the Appellate Authority pre-insertion of section 22(1B) to the Act 1956. Therefore, it cannot be said that the Appellate Authority has committed any error in not issuing any direction which now is permissible under Section 22(1B) of the Act 1956.
BRIEF FACTS
The factual matrix of the case is that although the transaction/sales of buses made through RSO in Vijayawada and sold to the Andhra Pradesh State Road Transport Corporation (also known as "APSRTC") were determined to be of an interstate nature by the impugned order, no subsequent order has been passed by the Appellate Authority directing to adjust the amount of tax paid on the aforesaid transactions.
COURT’S OBSERVATION
The hon’ble court observed that it is not in dispute that with respect to the transaction in question, namely, sales effected through RSO, Vijayawada with respect to vehicles/buses sold to APSRTC, the sale/s is/are found to be in the nature of inter-state sale/s. In that view of the matter, the appellant – Tata Motors Limited was liable to pay central sales tax to the State of Jharkhand. However, treating the sale as a stock transfer, the appellant/its representative had paid the tax on the aforesaid transaction to the State of Andhra Pradesh which is not leviable by the State of Andhra Pradesh. Therefore, the amount of central sales tax recovered by the State of Andhra Pradesh is required to be transferred to the State of Jharkhand, and the same is required to be adjusted towards the amount of tax to be paid to the State of Jharkhand. Further, prior to the insertion of Section 22(1B) to the Central Sales Tax Act, 1956 (hereinafter referred to as the ‘Act 1956’), there was no provision by which the Appellate Authority could have issued directions for a refund of the tax collected by the State which has been held by the Appellate 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 and in the present case the transaction is for the period prior to insertion of Section 22(1B) to the Act 1956 and the impugned order has been passed by the Appellate Authority pre-insertion of Section 22(1B) to the Act 1956. Therefore, as such, it cannot be said that the Appellate Authority has committed any error in not issuing any direction which now is permissible under Section 22(1B) of the Act 1956.
CASE NAME- Tata Motors Limited Vs Central Sales Tax Appellate Authority & Ors
CITATION- CIVIL APPEAL NO. 6450 OF 2012
DATED- 21.09.22
CORUM- Justice M.R. Shah and Justice Krishna Murari
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