Amendment in CST Act by finance Bill 2010

Feb 28, 2010

Section 6A:

Amendment in Sub- section (2 ) of 6A :

i) Provide that for making an order under that sub
section the assessing officer shall, in addition to
satisfying himself about the truthfulness of particulars
 furnished by a dealer , shall also satisfy himself that
 no interstate sale have been effected and also to provide
that the deeming provision as contained therein to the effect
 that the movement of goods have not occasioned as 
a result of sale SHALL BE SUBJECT TO THE  provisions
of sub-section (3) and


ii) Insert a new sub-section ( 3 ) so as to specify
 that nothing contained in sub- section (2) shall
 preclude re assessment by the assessing authority
on the basis of new fact discovered or revision by
a higher authority on the ground that the finding
of the assessing authority are contrary to law and
 such re assessment or revision may be done in
accordance with the provisions of general sales
tax law of the state.


New chapter VA inserted relating to appeals to
 the highest appellate authority of the state:

The proposed section seeks to insert a new
section 18A so as to make a provision foe
appeals to the highest appellate authority of
every state against the orders made under sub
section ( 2) and newly inserted sub section ( 3 ) of
 section 6A including incidental
issues relating to rate of tax ,
 computation of assessable turnover
and penalty and also
procedure before such highest
appellate authority.

Sub section ( 1) of section 20 substituted
 along with explanation given earlier :

To provide that an appeal shall lie to the authority against any order
 passed by the highest appellate authority of a state under
this act determining issues relating to stock transfers
or consignments of goods , in so far as they involve
a dispute of inter – state nature and to omit
explanation there under.

Prior to amendment Sub section ( 1 ) of section 20 :

The provision of this chapter shall apply to Apples filed by any
aggrieved person against any order of the highest appellate authority
 of a state, made under section 6A read with section 9.

Explanation :For the purpose of this section and
 section 21 , 22, and 25 highest appellate authority
of a state means any authority or tribunal or court

Sub section 1A of section 22 ( Power of the Authority )amended
and substituted the PRE DEPOSIT  words with DEPOSIT  :

The authority may grant stay of the operation of the order
of the highest appellate authority against which the appeal
is filled before it or order the pre- deposit deposit of the
tax before entertaining the appeal and while granting such
stay or making such order for the pre deposit deposit of the
tax, the Authority shall have regard, if the assessee has made
pre- deposit deposit of the tax under the general sales tax
law of the state concerned, to such pre- deposit deposit or
 pass such appropriate order as it may  deem feet.

New subsection (1B) provided under section 22 for the
 authority to issue direction for refund of tax collected by state.

Section 25 amended to delete the proviso to sub
section (2) related to transfer of pending cases :

Provided that where the highest appellate authority
find that the appellant has not availed of the
opportunity of filling first appeal before the
appellate authority , such case shall be forwarded to such authority.