Holding

The additional tax imposed under the Kerala Additional Sales Tax Act, 1978 is part of the State's sales tax law and must be taken into account for determining the rate of Central Sales Tax under Section 8(2‑A).

Summary

The Kerala Additional Sales Tax Act, 1978 imposed an extra levy of 10% of the existing tax rate on all taxable sales and purchases in the State. Several dealers, including AysHA Hosiery Factory, challenged the inclusion of this additional tax in the calculation of Central Sales Tax (CST) on their inter‑state sales, arguing that under Section 8(2‑A) of the Central Sales Tax Act, 1956 only the rate prescribed by the original Kerala General Sales Tax Act, 1963 should be considered and that a State amendment could not increase the CST rate. The Kerala High Court upheld the challenge, but the State appealed. The Supreme Court held that the definition of "sales tax law" under the CST Act embraces any law levying tax on sale or purchase, including the Additional Sales Tax Act, and that the rate applicable under the State law at the relevant time must be used to determine the CST rate under Section 8(2‑A). Consequently, the additional tax is part of the sales tax law and must be factored into the CST liability, unless a specific notification under Section 8(5) overrides it, which was not the case. The assessment orders were therefore restored.

Issues considered

Whether the levy under the Kerala Additional Sales Tax Act, 1978 qualifies as "sales tax" within the meaning of Section 8(2‑A) of the Central Sales Tax Act, 1956.
Whether an amendment or additional levy by a State can affect the rate of Central Sales Tax liability under Section 8(2‑A).
The effect of a notification under Section 8(5) of the Central Sales Tax Act on subsequent amendments to State tax law.
The proper interpretation of the term "sales tax law" as defined in Section 2(i) of the Central Sales Tax Act.

Legislation cited

Central Sales Tax Act, 1956s. 2(i), s. 6(1-A), s. 8, s. 8(2), s. 8(2-A), s. 8(5)
Kerala Additional Sales Tax Act, 1978
Kerala General Sales Tax Act, 1963

Subjects

Central Sales Taxinter‑state salessales tax lawrate of taxstate amendmentadditional sales taxSection 8(2‑A)Kerala Additional Sales Tax Acttax liabilitynotification under Section 8(5)

Judgment

A DEPUTY COMMISSIONER OF SALES TAX ETC. ETC.
v.
AYSHA HOSIERY FACTORY (P) LTD. ETC. ETC.

JANUARY 16, 1992

B [S. RANGANATHAN, V. RAMASWt\MI AND N. D. OJHA, JJ]

Central Sales Tax Act, 1956.

Sections 6(1-A), 8, 9: Tax on sale of goods in inter-state trade-
Liability of dealer-Rate of tax-Whether applicable under the local Act at
C the particular point of time.
,)--...
Kera/a General Sales Tax Act, 1963 [l] Kera/a Additional Sales Tax
Act, 1978 :

Additional levy imposed under the 1978 Ac1--Whether amounts to
D amending the Sales tax Act-Such levy-Whether could be applied to inter-
state sales.

The Kerala Additional Sales Tax Act, 1978 sought to impose an
additional sales tax at 10% of the rate of tax already imposed under the
E Kerala General Sales Tax Act, 1963, on all taxable sales and purchases
in the State.

The assessees challenged before the High Court, the levy of addi-
tional sales tax in respect of their inter-state sales on the ground that the
said levy could not be considered as a levy under the sales tax law of the
appropriate State within the meaning of Section 8(2-A) of the Central
F
Sales Tax Act, and for the purpose of levying Central Sales Tax only the
rate of tax as per the original Kerala General Sales Tax Act, 1963 shall
be taken into account. It was also contended that the rate of tax on inter-
state sales payable under Section 8 of the Central Sales Tax Act cannot
be increased by any amendment or legislation by the State.
G
The High Court having upheld the challenge, the State has pre-
ferred the present appeals by special leave.

On the question whether the additional tax levied could also be
considered as sales 'ax under the Sales tax law of the State, for the
H purpose of Central Sales Tax levy.

---.--
140
DY. COMMISSIONER v. AYSHA HOSIERY 141

Allowing the appeals, this Court, A
1
HELD :1.1 The definition provided by Section 2(i) of the Central
sales Tax Act does not say that the sales tax law or the general sales tax
law which levies taxes on sale or purchase of goods shall be under a
single enactment. What is relevant is whether the tax partakes the
character of sales tax or purchase tax. Any other construction would B
restrict the applicability of Section 8(2-A) of the Central Sales Tax Act
to the sales tax law that was in force in 1956 when the Central Sales Tax
Act came into force and any amendment to the local law would not have
any effect on the applicability of that provision. If a particular intra-state
sale transaction in a particular assessment year is subjected to a particu-
lar rate of tax that automatically gets reflected in and had to be taken c
into consideration for finding the ·rate and the applicability of Section
8(2-A) or section 8(2) (b) of Central Sales Tax Act. [146F-G; 147-A]

1.2 Instead of an additional Sales Tax Act, if the legisfature has
simply amended the Kerala General sales tax Act by varying, the rate,
automatically that will come in for consideration and application of the D
~.
provision of Section 8(2) (b) and 8 (2-A) of the Central Sales Tax Act.
)
For this purpose amendment of the State Act is not considered as an
amendment of the Central Sales Tax Act. But since the rate applicable
to the intra-state sales at a particular point of time is a relevant consid-
eration for finding out the rate of tax on inter-state sale the amendment
of the State Act automatically has the effect of changing the rate E
provided under Section 8 of the Central Sales Tax Act. That is not to say
that the Central Act is amended by the State Legislature. The rates of •
tax in certain cases under the Central Act are linked to the rates fixed
under the local Acts and that is how the amendment of the local Acts
affects the rates under the Central Act. It is still the Central Act that is
F
applied but only for purposes of fixing the rate of tax leviable under the
~· Central Sales Tax Act, the provisions of the local Act are looked into. So
construed there is not doubt that in all cases where the rate of tax under
"'r
the local law is less than four per cent that will be the rate applicable to
the inter-state sales of the same commodity if the provisions of Section
8(2-A) of the Central Sales Tax Act are applicable. The dealer undoubtedly G
would be paying at the rate as enhanced by the Additional Sales Tax Act
and therefore that will be the rate that is including the additional tax,
that is to be taken into consideration for randing out the applicability of
Section 8(2-A) of the Central Sales Tax Act and the rate of tax in respect
of bis inter-state sales turnover. Therefore the respondents are liable to
pay sales tax at the rate including the additional sales tax in respect of H
their inter-state sale under the Central Sales Tax assessment orders.
~
142 SUPREME COURT REPORTS [1~92] 1 S. C.R.

A 1.3 For the purpose of applicability of Section 8(2-A) of the CST
Act one has to look to the rate of fax applicable for the time being under
the local Act and not a rate of tax which was applicable under the local
Act at the time when the CST Act was enacted. Any am.endment in the
local Act ultimately will have a renection in the assessment of the inter-
state sales. [147 A·F]
B
1.4 However, where a notification has been issued under Section
8(5) of the Central Sales Tax Act, the amendment to the State Act will
not have any affect on the notification.

Janta Expel/er Company & Ors. v. Assistant Commissioner (Assess-
C ment) Sales Tax, Special Circle, Trichur, 49 STC 216, referred to. ,.1o.-,

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4042of1987
etc. etc.

From the Judgment and Order dated 11.7.1986 of the Kerala High
D Court in T.R.C. No. 9 of 1985.

P.S. Poti and K.R. Nambiar for the Appellants.

AS. Nambiar, G. Vishwanatha Iyer, G.B. Pai, P.H. Parekh, P.K. Ma-
nohar, Smt. Shanta Vasudevan, Ms. Malini Poduval, S. Sukumaran and N.
E Sudhakaran for the Respondents.

The Judgment of the Court was delivered by

V. RAMASWAMI, J. Leave granted in Special Leave Petition Nos.
8417 and 8492-93 of 1987.
F
In this batch of appeals the appellantf are the State of Kerala. The
respondents are registered dealers under the Kerala General Sates Tax Act,
+-
1963, hereinafter called the State Act as well as under the Central Sales Tax i
Act,1956 hereinafter called the Central Act. Some of the assessees carry on
G the business of sales and purchase of Coir products which is taxable under
the State Act at 2%, some of the dealers carry on business of Hosiery which
is taxable at 3%. The respondents-assessees in Civil Appeal Nos. 1426-27 of
1988 deal in automobile spares which is taxable at 15% and the assessee in
Civil Appeal No. 1015 of 1988 deals in transformer which is taxable at 10%.
The respondent in Civil Appeal No. 4386 of 1988 is a dealer in titanium
H dioxide, Cement, and Paints products which are taxable at 10% and the

I
DY. COMMISSIONER v. AYSHA HOSIERY [V. RAMASWAMY, J.] 143

respondent in Civil Appeal No. 189 of 1990 is a dealer of Sewing Thread A
which is taxable at 3%. The assessee in Civil Appeal No. 5557 of 1990 is a
dealer in rice taxable at 2%. Under the Kerala Additional Sales Tax Act (20
of 1978) all taxable sales and purchases in the State including the local sales
of Coir, Hosiery, Rice, Automobile parts, titanium dioxide, Cement, Paints
and transformers etc. with which we are concerned, were subjected to an
additional sales tax calculated at 10% of the rate of tax already imposed B
under the Kerala General Sales Tax Act, 1963. The result of it was where the
rate of tax was 2% the tax payable became 2.2 % where it was 3% it was
3.3%, 10% became 11 %, 15% became 16.5%. In all these cases the assess-
ments in question were under the Central Sales Tax Act. The Kerala
Additional Sales Tax Act came into force with effec! from 1st April, 1978.
In the present appeals the assessment year in question were either 1978-79 or c
subsequent thereto. The assessing officers sought to levy tax in respect of the
inter-state sales of the assc.ssees by including the additional sales tax. The
assessees questioned the inclusion of the additional sales tax levy in respect
of their inter-sta'te sales on the ground that the levy under the Kerala
Additional Sales Tax Act is not and could not be considered as a levy "under
the sales tax law of the appropriate State" within the meaning of section 8(2- D
A) of the Central Act and for the purpose of levying Central Sales Tax in
view of the provision of section 8(2-A) of the CST Act only the rate of tax
as per the original Kerala General Sales Tax Act, 1963 shall be taken into
account. They also contended that the rate of tax on inter-state sales payable
under section 8 of the Central Act cannot be increased by any amendment of
the State Act or any legislation by the State. All the revision petitions. filed E
by the assessees were allowed by the High Court of Kerala accepting their
contention following the judgment of the Division Bench of the same Court
reported in Assistant Commissioner (Assessment) Sales Tax v. Janata Expeller
Company and Ors., 64 STC 435 which confirmed a Single Judge judgment
in Janata Expeller Company & Ors. v. Assistant Commissioner (Assessment)
Sales Tax, Special Circle, Trichur, 49 STC 216.
F

Before we deal with the decision relied on by them it is better we set
'f out the relevant provisions and understand the scope and implications of the
same.
G
"8. Rates of tax on sales in the course of inter-state trade or
commerce.-(1) Every dealer, who in the course of inter-State
trade or commerce-

(a) sells to the Government any goods; or
H
144 SUPREME COURT REPORTS [1992] 1 S. C.R.

A (b) sells to a registered dealer other than the Government
goods of the description referred to in sub-section (3);
shall be liable to pay tax under this Act, which shall ,be four
percent of the turnover.

(2) The tax payable by any dealer on his turnover in so far as the
B 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)-

(a) in the case of declared goods shall be calculated at twice
the rate applicable to the sale or purchase of such goods
c inside the appropriate State; and

(b) in the case of goods other than declared goods, shall be
calculated at the rate of ten per cent or at the rate applicable
to the sale or purchase of such goods inside the appropriate
State, whichever is higher;
D
and for the purpose of making any such calculation any such
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.

E (2A) Notwithstanding anything contained in sub-section (IA) of
section 6 or sub-section (1) or clause (b) of sub-section (2) of this
section, the tax payable under this Act by a dealer on his turnover , .
in so far as the turnover or any part thereof relates to the sale of
any goods, the sale or, as the case may be, the purchase of which
is, -under the sales tax law of the appropriate State, exempt from
F tax generally or subject to tax generally at a rate which is lower
than four percent (whether called a tax or fee or by any other +--
name), shall be nil or, as the case may be, shall be calculated at
y
the lower rate.

G Explanation-For the purposes of this sub-section a sale or
purchase of any goods shall not be deemed to be exempt from tax
generally under the sales tax law of the appropriate State if under
that law the sale or purchase of such goods is exempt only in
specified circumstances or under specified conditions or the tax
is levied on the sale or purchase of such goods at specified stages
H or otherwise than with reference to the turnover of the goods.
DY. COMMISSIONER v. AYSHA HOSIERY [V. RAMASWAMY, J.] 145

(3) ............................ . A

(4) .....•........................

(5) Notwithstanding anything contained in this section, the State
Government may, if it is satisfied that it is necessary so to do in
the public interest, by notification in the official Gazette, and B
subject to such conditions as may be specified therein, direct-

(a) that no tax under this Act shall be payable by any dealer
having his place of business in the State in respect of the
sales by him, in the course of inter-state trade or commerce,
from any such place of business of any such goods or C
classes of goods as may be specified in the notification, or
that the tax on such sale shall be calculated at such lower
rates than those specified in sub-section (1) or sub-section
(2) as may be mentioned in the notification;

(b) that in respect of all sales of goods or sales of such classes D
of goods as may be specified in the notification, which are
made in the course of inter-State trade or commerce, by any
dealer having his place of business in the State or by any
class of such dealers as may be specified in the notification,
to any person or to such class of persons as may be
specified in the notification, no tax under this Act shall be E
payable or the tax on such sales shall be calculated at such
lower rates than those specified in sub-section (1) or sub-
section (2) as may be mentioned in the notification."

In all these appeals the inter-State sales in question which are sought F
to be taxed admittedly do not fall under sub-section (1) or clause (a) of sub-
section (2) of section 8 of the CST Act. The sales were of goods other than
the declared goods, therefore, under clause (b) of sub-section (2) of section
8 the tax payable by the dealer on his turnover shall be calculated at the rate
of 10% or at the rate applicable to the sale or purchase of such goods inside
the State whichever is higher. However, sub-section (2-A) of this section G
states that notwithstanding anything contained in clause (b) of sub-section (2)
the tax payable under the Central Sales Tax Act by the dealer where the
intra-state sale of the same under the 'sales tax law' of the State is "exempt
from tax generally or subject to tax generally at a rate which is lower than
four per cent shall be nil or as the case may be shall be calculated at the lower
rate." Thus if an intra-state sale by the dealer is exempt then his inter-State H
146 SUPREME COURT REPORTS [1992) 1 S. C.R.

A sale also will be exempt. If the intra-State sale is taxed at a rate which is
lower than four percent, then his inter-State sale of the same commodity shall
also have to be taxed at the lower rate applicable in the State. But where the
rate of tax applicable to intra-State sale was more than four percent then the
rate applicable for inter-State sale will be nil or the rate applicable for the
local sale whichever is higher. The question for consideration is as to
B whether the additional tax levied under Kerala Additional Sales Tax Act is
also to be considered as sales tax under the 'sales tax law' of the State. The
question could not have arisen but for the fact that this additional levy crune
to be imposed under a separate Act. Had the additional Sales Tax been
imposed by simply amending the rates in the original Act the question would
not have arisen. But we are of the view that this makes no difference and it
C is merely a matter of style of legislation. The additional sales tax levied under
the Sales Tax Act is also sales tax of the same category as in the original Act.
The Kerala Additional Sales Tax Act provides that "The tax payable under
Kerala General Sales Tax Act, 1963 (15 of 1963) (hereinafter referred to as
the State Act) for every financial year commencing from the financial year
1978-79 shall be increased by 10 per cent of such tax"()nstead of increasing
D the rate of tax for each of the commodities which are covered by the Kerala
General Sales Tax Act by one comprehensive provision the tax is increased
by 10% over the rate provided under the original Act in respect of all the
commodities the sale or purchase of which are taxable. Both take the form
of sales tax and in the case of assessment of local sales it makes no difference
whether it is called tax and additional tax or one higher percentage of tax. In
E truth and effect it is a levy of tax on the sales or purchases of the dealers.
However, it was contended on behalf of the assessees that the words "under
the sales tax law of the appropriate State" in Section 8 (2-A) of the CST
refers to only the General Sales Tax Act provisions and not the additional
Sales Tax Act provisions. Section 2(i) of the Central Sales Tax Act defines
'sales tax law' as meaning "any law for the time being in force in any State
F
or part thereof which provides for the levy of taxes on the sale or purchase
of goods generally or on any specified goods expressly mentioned in that
behalf and 'general sales tax law' means the law for the time being in force
in any State or part thereof which provides for the levy of tax on the sale or y
purchase of goods generally." The definition does not say that the sales tax
G law or the general sales tax law which levies taxes on sale or purchase of
goods shall be under a single enactment What is relevant is whether the tax
partakes the character of sales tax or purchase tax. Any other construction
would restrict the applicability of section 8 (2-A) of the CST Act to the saies
tax law that was in force in 1956 when the Central Sales Tax Act came into
force and any amendment to the local law would not have any affect on the
H applicability of that provision. We do not see any logic or reason for such a
DY. COMMISSIONER v. AYSHA HOSIERY [V.RAMASWAMY,J.] 147

-construction. What is relevant is if a particular intra-state sale transaction in A
a particular assessment year is subjected to a particular rate of tax that
automatically gets reflected in and had to be taken into consideration for
finding the rate and the applicability of section 8 (2-A) or Section 8(2)(b) of
Central Sales Tax Act. As already stated if instead of an additional sales tax
Act the legislature has simply amended the Kerala General Sales Tax Act by
varying the rate automatically that will come in for consideration and B
application of the provisions of Section 8(2)(b) and 8(2-A) of the CST Act.
For this purpose amendment of the State Act is not considered as an
amendment of the Central Sales Tax Act. But since the rate applicable to the
intra-state sales at a particular point of time is a relevant consideration for
finding out the rate of tax on inter-State sale the amendment of the State Act
automatically has the effect of changing the rate provided under Section 8 of C
the Central Sales Tax Act That is not to say that the Central Act is amended
by the State Legislature. The rates of tax in certain cases under the Central
Act are linked to the rates fixed under the local Acts and that is how the
amendment of the local acts affects the rates under the Central Act. It is still
the Central Act that is applied but only for purposes of fixing the rate of tax
leviable under the Central Sales Tax Act the provisions of the Local Act are D
looked into. So construed we have no doubt that in all cases where the rate
of tax under the local .Jaw is less than four per cent that will be the rate
applicable to the inter-state sale of the same commodity if the provisions of
Section 8(2-A) of the CST Act are applicable. The dealer undoubtedly would
be paying at the rate as enhanced by the Additional Sales Tax Act and
there1.lre that will be the rate that is including the additional tax, that is to be E
taken into consideration for finding out the applicability of section 8(2-A) of
the CST Act and the rate of tax in respect of his inter-State sales turnover.
There could be therefore no doubt that the assessees-respondents in all these
cases are liable to pay sale& tax at the rate including the additional sales tax
in respect of their inter-State sale under the C~ntral Sales Tax assessment F
orders.
,..
The High Court has reversed the order of the assessment in all these
cases relying on the decision of a learned Single Judge in Janata Expe/ler Co.
case 49 STC 216 which was affinned on appeal by a Division Bench of the
same High Court in 64 STC 435. That case related to the assessment of a G
dealer in relation to his inter-State sales turnover of coconut oil and cake.
Under the Kerala General Sales Tax Act, 1963 the local sales of coconut oil
and cake were taxable at 2%. By reason of the Kerala Additional Sales Tax
Act, 1978 the rate of tax had increased to 2.2%. In exercise of the power
under section 8(5) of the Central Sales Tax Act the State Government on
1.4.1966 notified that the Government "being satisfied that it is necessary so H
148 SUPREME COURT REPORTS [1992) 1 S. C.R.

A to do in the public interest, hereby direct that in respect of coconut oil and
its cake the tax payable under the said Act by an oil miller having his place
of business in the State of Kerala in respect of the sale by him from such
place of business of the said goods in the course of inter-State trade or
commerce shall be calculated at 1 percent on the sale price of the goo<!s so
sold subject to the condition that the turnover of coconut or copra, from
B which the said goods were produced by him in his mill within the State, is
assessed to tax or is liable to tax at his hands under the Kerala General Sales
Tax Act. This notification came into force with effect from 1.4.1966. When
the assessing authorities sought to levy the additional tax imposed under the
additional Sales Tax Act, 1978 in respect of the inter-state sale and called
upon the assessees to pay at 1.1 %, the dealers questioned the assessment
C orders on the ground that when once a notification has been made under >.__
Section 8(5) of the Central Sales Tax Act fixing the rate for purposes of
C.S.T. any change in the rate of tax under the local act will have no impact
on the notification itself unless the notification also is modified or amended
giving effect to the amendment. This contention was accepted by Kochu
Thommen. as he then was, in the judgment in the Janatha Expeller Co. &
D Ors. case (supra). No exception could be taken to this view of the learned
Judge. Because section 8(5) of the Central Sales Tax Act is a provision which
enable the State Government if it was of the view that it was necessary to do
so in the public interest to completely exempt the inter-state sales from
payment of tax or reduce the tax payable under the Central Act in respect of
inter~state sales. The section itself states the notification will have effect
E "Notwithstanding anything contained in section 8". Therefore when once a
notification is made it will have effect propio vigor and even any amendment
of the rate applicable to inter-state sale will not affect the notification under
section 8(5) of the Central Sales Tax Act as such unless the notification also
is amended along with the amendment of the other provisions in the Section
or the amending statute in law has the effect of superseding the notification
F
itself. In the case dealt with in Janatha Expel/er Co. & Ors. (supra) the levy
of additional sales tax could not affect the notification because the notification,
though issued by the State Government, was made in exercise of the powers
under section 8(5) of the Central Act enacted by the Parliament, and the
Kerala Additional Sales Tax Act was made by the State Legislature and that
G could have the effect of superseding the notification. We may also point out
that the learned Judge also had confined his decision to the notification and
its effect though he had dealt with the scope of section 8(2-A) of the Central
Sales Tax Act also in order to give better understanding of the provisions of
section 8(5) of the Central Sales Tax Act. We are unable to see anything in
this judgment to support the contention of the respondents-assessees that
H even in a case which is not covered by any notification under section 8(5) of
DY. COMMISSIONER v. AYSHA HOSIERY [V. RAMASWAMY, J.] 149

the CST Act increase in the rate of tax under the local act will not have any A
'( effect on the applicability of Section 8(2)(b) and 8(2-A) of the CST Act.
Further, for enhancing the rate notified under section 8(5) of the Central Sales
Tax Act no reliance can be placed on section 8(2-A)of the CS1' Act.
However, while agreeing with the view of the learned single Judge the
Division Bench on appeal in the case of Assistant Commissioner (Assess-
menl) Sales Tax (supra) made certain further observations which in a way B
supported the contention of the assessees. That passage reads as follows:
"We are also of the view, that even in cases where tax is exigible
under section 8(2A) of the Central Sales Tax for the inter-State
sales, the Kerala Additional Sales Tax Act, 1978 (Act 20 of
1978), has no application.
c
As stated already, in cases where the tax is payable under section
8(2A) of the Central Sales Tax Act, what is crucial or relevant is
to ascertain, the appropriate sales tax law of the State, under
which the tax is levied for the sale or purchase of the goods or
the commodity, in question. Looked at from the angle, we have
no doubt, that the appropriate sales tax law of the State, of which D
tax is levied, is the Kerala General Sales Tax Act, 1963. The
Kerala Additional Sales Tax Act,1978 (Act 20 of 1978), does not
levy sales tax on the sale or purchase of the goods or commodity,
in question. We hold that the provisions of Act 20 of 1978 are
inapplicable to a situation, where inter-State sales are to be taxed
under section 8 or section 8(2A) or section 8(5) of the Central E
Sales Tax Act.
In the first place these observations are in the nature of obiter in view
of the fact that the learned Judges have accepted the interpretation placed by
the learned single Judge that in respect of a case where a notification has
been issued under Section 8(5) of the CST Act the amendment to the State F
Act will not have any effect on the notification. That should have been
--~ enough to dispose of the case but they have given an alternative reasoning
'f which in our view is not correct and is against the provisions of Section 8
(2-A) of the CST Act itself. For the purpose of applicability of Section
8(2-A) of the CST Act we have to look to the rate of tax applicable for the
time being under the local Act and not a rate of tax which was applicable G
under the local Act at the time when the CST Act was enacted. Any
amendment in the local Act ultimately will have a reflection in the assess-
ment of the inter-state sales. We have already discussed the scope of Section
8 (2-A) of the CST Act and in the light of those reasonings the passage
extracted above in the judgment of the Division Bench is contrary to law and
could not be accepted. H
150 SUPREME COURT REPORTS (1992) 1 S. C.R.

A As we have stared already in all the appeals tmder consideration there
were no notifications under section 8(5) of the CST Act and simply the y--
applicability of section 8(2-A) of the CST Act alone is involved. The appeals
are accordingly allowed. The orders of the High C()Urt are set aside and the
respective assessment orders are restored. However, there will be no order as
lO costs.

GN. Appeals allowed. ·

\

"' .