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THE CENTRAL SALES TAX ACT, 1956

Title : THE CENTRAL SALES TAX ACT, 1956

Year : 1956



It is hereby declared that the following goods are of special importance in inter-State trade or commerce:-

1*[(i) Cereals, that is to say,-

(i) Paddy (Oryza sativa L.);

(ii) Rice (Oryza sativa L.);

(iii) Wheat (Triticum vulgar, T. compactum, T. sphaerococcum, T.
durum, T. aestivum L. T. dicoccum);

(iv) Jowar or milo (Sorghum vulgare Pers);

(v) Bajra (Pennisetum typhoideum L.);

(vi) Maize (Zea mays D.);

(vii) Ragi (eleusine coracana Gaertn.);

(viii) Kodon (paspalum scrobiulatum L.);

(ix) Kutki (Panicum miliare L.);

(x) Barley (Hordeum vulgare L.);]

2*[3*[(ia)] Coal, including coke in all its forms, but excluding charcoal:

Provided that during the period commencing on the 23rd day of February, 1967 and ending with the date of commencement of section 11 of the Central Sales Tax (Amendment) Act, 1972 (61 of 1972) this clause shall have effect subject to the modification that the words "but excluding charcoal" shall be omitted;]

(ii) Cotton, that is to say all kinds of cotton (indigenous or imported) in its unmanufactured state, whether ginned or unginned, baled, pressed or otherwise, but not including cotton waste;

4*[(iia) Cotton fabrics covered under heading Nos. 52.05, 52.06, 52.07, 52.08, 52.09, 52.10, 52.11, 52.12,58.01, 58.02, 58.03, 58.04, 58.05, 5*[58.06,], 59.01, 59.03, 59.05, 59.06, and 60.01 of the Schedule to the Central Exercise Tariff Act, 1985 (5 of 1986);]

6*[(iib) Cotton yarn, but not including cotton yarn waste;]

7*[(iic) Crude oil, that is to say, crude petroleum oils and crude oils obtained from bituminous minerals (such as shale, calcareous rock, sand), whatever their composition, whether obtained from normal or condensation oil-deposits or by the destructive distillation of bituminous minerals and whether or not subjected to all or any to the following processes:-

(1) Decantation;

(2) De-salting;

(3) Dehydration;

(4) Stabilisation in order to normalise the vapour pressure;

(5) Elimination of very light fractions with a view to returning them to the oil-deposits in order to improve the drainage and maintain the pressure;

(6) The addition of only those hydrocarbons previously recovered by physical methods during the course of the above mentioned processes;

(7) Any other minor process (including addition of pour point depressants or flow improvers) which does not charge the essential character of the substance;]

21*[(iid) Aviation Turbine Fuel sold to an aircraft with a maximum take-off mass of less than forty thousand kilograms operated by scheduled airlines.

Explanation.-For the purposes of this clause, "scheduled airlines" means the airlines which have been permitted by the Central Government to operate any Scheduled air transport service.]

(iii) Hides and skins, whether in a raw or dressed state;

9*[(iv) Iron and steel, that is to say,-

(i) 10*[Pig iron, sponge iron and] cast iron including 11[ingot moulds, bottom plates], iron scrap, cost iron scrap, runner scrap and iron skull scrap;

(ii) Steel semis (ingots, slabs, blooms and billets of all qualities, shapes and sizes);

(iii) Skelp bars, tin bars, sheet bars, hoe-bar and sleeper bars;

(iv) Steel bars (rounds, rods, squares, flat, octagons and hexagons, plain and ribbed or twisted, in coil form as well as straight lengths];

(v) Steel structurals (angles, joists, channels, tees, sheet piling sections, Z-sections or any other rolled sections);

(vi) Sheets, hoops, strips and skelp, both black and galvanised, hot and cold rolled plain and corrugated, in all qualities, in straight lengths and in coil form, as rolled and in vetted condition;

(vii) Plates both plain and chequered in all qualities;

(viii) Discs, rings, forgings and steel castings;

(ix) Tools, alloy and special steels of any of the above categories;

(x) Steel melting scrap in all forms including steel skull, turnings and borings;

(xi) Steel tubes, both welded and seamless, of all diameters and lengths including tube fittings;

(xii) Tin-plate, both hot dipped and electrolytic and tin free plates;

(xiii) Fish plate bars, bearing plate bars, crossing sleeper bars, fish plates, bearing plates, crossing sleepers and pressed steel sleepers-heavy and light crane rails;

(xiv) Wheels, tyres, axles and wheels sets;

(xv) Wire rods and wires- rolled drawn, galvanized, aluminized, tinned or coated such as by copper;

(xvi) Defectives, rejects, cuttings, or end pieces of any of the above categories;]

12*[(v) Jute, that is to say, the fibER extracted from plants belonging to the species Corchorrus capsular is and Corchorus olitorius and the fiber known as mesta or bimli extracted from plants of the species Hibiscus cannabinus and Hibiscus sabdariffa-Varaltissima and the fibER known as Sunn or Sunn-hemp extracted from plants of the species Crotalaria juncea whether baled or otherwise;]

19*[(va) Liquefied petroleum gas for domestic use;]

13*[(vi) Oil seeds, that is to say,-

(i) Groundnut or peanut (Arachis hypogaea);

(ii) Sesamum or til (Seasamum orientale);

(iii) Cotton seed (Gossypium Spp);

(iv) Soyabean (Glycine seja);

(v) Rapeseed and mustard-

(1) Torta (Brassica campestris var toria);

(2) Rai (Brassica juncea);

(3) Jamba-taramira (Eruca Satiya);

(4) Sarson, yellow and brown (Brassica campestris var sarson);

(5) Banarasi rai or true mustard (Brassica nigra);

(vi) Linseed (Linum usitatissimum);

(vii) Castor (Ricinus communis);

(viii) Coconut(i.e., Copra excluding tender coconuts)(cocosnucifera);

(ix) Sunflower (Helianthus annus);

(x) Nigar seed (Guizotia abyssinica);

(xi) Neem, vepa (Azadirachta indica);

(xii) Mahua, illupai, ippe (Madhuca indica M. Latifolia, Bassia, Latifolia and Madhuca longifolia syn. M. Longifolia);

(xiii) Karanja, pongam, hong (Pongamia pinnata syn. P. Glabra);

(xiv) Kusum (Schleichera oleosa, syn. S. Trijuga);

(xv) Punna, Undi (Calophyllum inophyllum);

(xvi) Kokum (Carcinia indica);

(xvii) Sal (Shorea rebusta);

(xviii) Tung (Aleurites fordii and A. montana);

(xix) Red plam (Elaeis guinensis);

(xx) Safflower (Carthanus tinctorius);]

14*[(via) Pulses, that is to say,-

(i) Gram or gulab gram (Cicerarietinum L.);

(ii) Tur or arhar (Cajanus cajan);

(iii) Moong or green gram (Phaseolus aureus);

(iv) Masur or lentil (Lens esculemta Moench, Lens Culinarie Medic.);

(v) Urad or black gram (Phaseolus mungo);

(vi) Moth (Phaseolus aconitifolius Jacq);

(vii) Lakh or khesari (Lathyrus sativus L.);]

15*[(vii) Man-made fabrics covered under heading Nos. 54.08, 54.09, 54.10, 54.11, 54.12, 55.07, 55.08, 55.09, 55.10, 55.11, 55.12, 58.01, 58.02, 58.03, 58.04, 58.05, 16*[58.06,] 59.01, 59.02, 59.03, 59.05, 59.06, and 60.01 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

(viii) Sugar covered under sub-heading Nos. 1701.20, 1701.31, 1701.39, and 1702.11 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

(ix) 20[***];

(x) Woven fabrics of wool covered under heading Nos. 51.06, 51.07, 58.01, 58.02, 58.03 and 58.05 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1985);]

18[***]

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1. Inserted by Act 103 of 1976, section 7 w.e.f. 7-9-1976.

2. Substituted by Act 61 f 1972, section 11, for clause (i) (retrospectively).

3. Clause (i) re-numbered as clause (ia) by Act 103 of 1976, section 7 w.e.f. 7-9-1976.

4. Item (iia) Inserted by Act 16 of 1957, section 3 and Substituted by Act 31 of 1958, section 10 w.e.f. 1-10-1958.

5. Inserted by Act 13 of 1989, section 50 w.e.f. 12-5-1989.

6. Inserted by Act 31 of 1958, section 10 w.e.f. 1-10-1958.

7. Inserted by Act 103 of 1976, section 7 w.e.f. 7-9-1976.

8. Inserted by the Finance Act, 2001.

9. Substituted by Act 61 of 1972, section 11, for clause (iv) w.e.f. 1-4-1973.

10. Substituted for "pig iron and" by the Finance Act, 2001

11. Substituted by Act 38 of 1978, section 3 and Sch II, for "ingot moulds bottom plates."

12. Substituted by Act 61 of 1972, section 11, for clause (v) w.e.f. 1-4-1973.

13. Substituted by Act 61 of 1972, section 11, for clause (vi) w.e.f. 1-4-1973.

14. Inserted by Act 103 of 1976, section 7 w.e.f. 7-9-1976.

15. Inserted by Act 31 of 1958, section 10 w.e.f.1-10-1958 and Substituted by Act 26 of 1988, section 85 w.e.f. 13-5-88.

16. Inserted by Act 13 of 1989, section 50.

17. Substituted by Act 13 of 1989, section 50, for "and 2404.50" w.e.f. 12-5-1989.

18. Item (xi) omitted by Act 19 of 1968, section 43 w.e.f. 11-5-1968.

19. Inserted by the Finance Act, 2006

20. Omitted by the Taxation Laws (Amendment) Act, 2007, dated 26.03.2007, w.e.f. 01.04.2007. Prior to omission it read as under:

"(ix) unmanufactured tobacco and tobacco refuse covered under sub-heading No. 2401.00, cigars and cheroots of tobacco covered under hading No. 24.02. cigarettes and cigarillos of tobacco covered under sub-heading Nos. 2403.11, and 2403.21 and other manufactured tobacco covered under sub-heading Nos. 2404.11, 2404.12, 2404.13, 2404.19, 2404.21, 2404.29, 2404.31, 2404.39, 2404.41, 17 [2404.50 and 2404.60] of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)"

21. Substituted by the Finance Act, 2007. Prior to substitution, it read as under:-

"8(iid) Aviation Turbine Fuel sold to a Turbo-Prop Aircraft.
Explanation.-For the purposes of this clause, "Turbo-Prop Aircraft" means an aircraft deriving thrust, mainly from propeller, which may be driven by either turbine engine or piston engine;"

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Every sales tax law of a State shall, insofar as it imposes or authorises the imposition of a tax on the sale or purchase of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely:-

(a) The tax payable under that law in respect of any sale or purchase of such goods inside the State shall not exceed 8[five per cent.] of the sale or purchase price thereof,3[***]

(b) Where a tax has been levied under that law in respect of the sale or purchase inside the State of any declared goods and such goods are sold in the course of inter-State trade of commerce,4*[and tax has been paid under this Act in respect of the sale of such goods in the course of inter-State trade or commerce, the levied under such law]5*[shall be reimbursed to the person making such sale in the course of inter-State trade or commerce] in such manner and subject to such conditions as may be provided in any law in force that State;]

6*[(c ) Where a tax has been levied under that law in respect of the sale or purchase inside the State of any paddy referred to in sub-clause (i) of clause (i) of section 14, the tax leviable on rice procured out of such paddy shall be reduced by the amount of tax levied on such paddy;

7*[(ca) Where a tax on sale or purchase of paddy referred to in sub-clause (i) of clause (i) of section 14 is leviable under the law and the rice procured out to such paddy is exported out of India, then, for the purposes of sub-section (3) of section 5, the paddy and rice shall be treated as a single commodity;]

(c)  Each of pulses referred to in clause (via) of section 14, whether whole or separated, and whether with or without husk, shall be treated as a single commodity for the purposes of levy of tax under that law.]
 
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1. Substituted by Act 31 of 1958, section 11, for section 15 w.e.f. 1-10-1958.

2. Substituted by Act 25 of 1975, section 38, for "three per cent." w.e.f. 1-7-1975.

3. The words "and such tax shall not be levied at more than one state;" omitted by the Finance Act, 2002 w.e.f. 13-05-2002.

4. Substituted by Act 61 of 1972, section 12, for "the tax so levied" w.e.f. 1-4-1973.

5. Substituted by Act 61 of 1972, section 12, for "shall be refunded to such person" w.e.f. 1-4-1973.

6. Inserted by Act 103 of 1976, section 8 w.e.f. 7-9-1976.

7. Inserted by Act 33 of 1996, section 87 w.e.f. 28-9-1996.

8. Substituted by the Finance Act, 2011 for the following : - "2[four per cent.]"

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In this Chapter,-

(a) “Appropriate authority”, in relation to a company, means the authority competent to assess tax on the company;

(b) “Company” and “private company” have the meanings respectively assigned to them by clauses (i) and (iii) of sub-section (1) of section 3 of the Companies Act, 1956 (1 of 1956).



(1) Every person-

(a) Who is the liquidator of any company which is being wound up, whether under the orders of a court or otherwise; or

(b) Who has been appointed the receiver of any assets of a company, (hereinafter referred to as the liquidator) shall, within thirty days after he has become such liquidator, give notice of his appointment as such to the appropriate authority.

(2) The appropriate authority shall, after making such inquiry of calling for such information as it may deem fit, notify to the liquidator within three months form the date on which he receives notice of the appointment of the liquidator the amount which, in the opinion of the appropriate authority would be sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company.

(3) The liquidator shall not part with any of the assets of the company or the properties in his hands until he has been notified by the appropriate authority under sub-section (2) and no being so notified, shall set aside an amount equal to the amount notified and, until he so sets aside such amount, shall not part with any of the assets of the company or the properties in his hands:

Provided that nothing contained in this sub-section shall debar the liquidator from parting with such assets or properties in compliance with any order of a court or for the purpose of the payment of the tax payable by the company under this Act or for making nay payment to secured creditors whose debts are entitled under law to priority of payment over debts due to Government on the date of liquidation or for meeting such costs and expenses of the winding up of the company as are in the opinion of the appropriate authority reasonable.

(4) If the liquidator fails to give the notice in accordance with sub-section (1) or fails or set aside the amount as required by, or parts with any of the assets of the company or the properties in his hands in contravention of the provisions of sub-section (3), he shall be personally liable for the payment of the tax which the company would be liable to pay:

Provided
that if the amount of any tax payable by the company is notified under sub-section (2), the personal liability of the liquidator under this sub-section shall be to the extent of such amount.

(5) Where there are more liquidators than one, the obligations and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally.

(6) The provisions of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.



Notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), when any private company is wound up after the commencement of this Act, and any tax assessed on the company under this Act for any period, whether before or in the course of or after its liquidation, cannot be recovered, then, every person who was a director of the private company at any time during the period for which the tax is due shall be jointly and severally liable for the payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of company.

18A - Appeals to highest appellate authority of State

1*[(1) Notwithstanding anything contained in a State Act, any person aggrieved by an order made by the assessing authority under sub-section (2) of section 6A, or an order made under the provisions of sub-section (3) of that section, may, notwithstanding anything contained in the general sales tax law of the appropriate State, prefer an appeal to the highest appellate authority of the State against such order:

Provided that any incidental issues including the rate of tax, computation of assessable turnover and penalty may be raised in such appeal.

(2) An appeal under sub-section (1) shall be filed within sixty days from the date2 on which the order referred to in that sub-section is communicated to the aggrieved person:

Provided that any appeal forwarded by the highest appellate authority of a State to the first appellate authority under the proviso to sub-section (2) of section 25 and pending before such authority immediately before the appointed day shall be transferred, on such appointed day, to the highest appellate authority of the State and the same shall be treated as an appeal filed under sub-section (1) and dealt with accordingly.

Explanation.-For the purposes of this sub-section, “appointed day” means such date as the Central Government may, by notification in the Official Gazette, appoint.

(3) The highest appellate authority of a State may, after giving both the parties an opportunity of being heard, pass appropriate order.

(4) The highest appellate authority of the State may, as far as practicable, hear and decide such appeal within a period of six months from the date of filing of the appeal.

(5) Notwithstanding anything contained in a State Act, the highest appellate authority of a State may, on the application of the appellant and after considering relevant facts, including the deposit of any amount towards local or central sales tax in other States on the same goods, pass an order of stay subject to such terms and conditions as it thinks fit, and such order may, inter alia, indicate the portion of tax as assessed, to be deposited prior to admission of the appeal.

Explanation.-For the purposes of this section and sections 20, 21, 22 and 25, “highest appellate authority of a State”, with its grammatical variations, means any authority or tribunal or court, except the High Court, established or constituted under the general sales tax law of a State, by whatever name called.]
 
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1. Inserted by the Finance Act, 2010.

2. The provisions of Section 18(2) to be effective from 01.06.2010 vide Notification No. GSR455(E) dated 28.05.2010.

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(1) The Central Government constitute, by notification in the Official Gazette, an Authority to settle inter-State disputes falling under 1* [section 6Aread with section 9] of this Act, to be known as "the Central Sales Tax Appellate Authority (hereinafter referred to as the Authority)".

(2) The Authority shall consist of the following Members appointed by the Central Government, namely:-

(a) A Chairman, who is a retired Judge of the Supreme Court, or a retired Chief Justice of a High Court;

(b) An officer of the Indian Legal Service who is, or is qualified to be, an Additional Secretary to the Government of India; and

(c) An officer of a State Government not below the rank of Secretary or an officer of the Central Government not below the rank of Additional Secretary, who is an expert in sales tax matters.

2*[(2A)Notwithstanding anything contained in sub-section (2), the Chairman or a Member holding a post as such in the Authority for Advance Rulings appointed under clause (a) or clause (c), as the case may be, of sub-section (2) of section 245-O of the Income-tax Act,1961(43 of 1961) may, in addition to his being the Chairman or a Member of that Authority, be appointed as the Chairman or a Member, as the case may be, of the Authority under this Act.]

(3) The salaries and allowances payable to, and the terms and conditions of service of, the Chairman and Members shall be such as may be prescribed.

(4) The Central Government shall provide the Authority with such officers and staff as may be necessary for the efficient exercise of the powers of the Authority under this Act.

19A - 3* Vacancies, etc., not to invalidate proceedings

No proceeding before the Authority shall be questioned or shall be invalid on the ground merely of the existence of any vacancy or defect in the constitution of the Authority.]

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1.Substituted for the words "section 6A or section 9" by the Finance (No.2) Act,2004.

2.  Inserted by the Central Sales Tax(Amendment) Act, 2005.

3. Inserted by the Central Sales Tax (Amendment) Act, 2005.

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2*[(1) 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.]

(2) Notwithstanding anything contained in the general sales tax law of a State, the Authority shall adjudicate an appeal filed under sub-section (1).

(3) An appeal under sub-section (1) may be filed within ninety days from the date on which the order referred to in that sub-section is served on any aggrieved person:

Provided that the Authority may entertain any appeal after the expiry of the said period of ninety days, but not later than one hundred and fifty days from the date of such service, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time:

Provided further that the Authority may entertain any appeal from an aggrieved person within sixty days from the commencement of the Central Sales Tax (Amendment) Act, 2005, where such aggrieved person had the right to file an appeal against the order of the highest appellate authority of the State under sub-section (1) as it stood immediately before the commencement of the said Act, but has not availed of the right to file the appeal during the period commencing on and from the 3rd day of December, 2001 and ending with the 16th day of March, 2005.

(4) The application shall be made in quadruplicate and be accompanied by a fee of five thousand rupees.]
  
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1. Substituted by the Central Sales Tax (Amendment) Act, 2005. Prior to its substitution, section 20 read as under:
"20 Appeals. (1) The provisions of this Chapter shall apply to appeals filed by the aggrieved dealer against any order of the assessing authority made under [section 6A read with section 9] of this Act, which relates to any dispute concerning the sale of goods effected in the course of inter-state trade or commerce].

(2) Notwithstanding anything contained in the general sales tax laws, the Authority shall adjudicate an appeal filed by a dealer [under sub-section (1) within forty-five days from the date on which order referred to in that sub-section is served on him :

Provided that the Authority may entertain any appeal after the expiry of the said period of forty-five days, but not later than sixty days from the date of such service, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.].

[***]

(4) The application shall be made in quadruplicate and be accompanied by a fee of five thousand rupees."

2. Substituted by the Finance Act, 2010 for the following :-

"1*[(1) The provisions of this Chapter shall apply to appeals 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 purposes of this section and sections 21, 22 and 25 "highest appellate authority of a State" means any authority or tribunal or court (except the High Court) established or constituted under the general sales tax law of a State, by whatever name called."

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(1) On receipt of an appeal, the Authority shall cause a copy thereof to be forwarded to the 1*[2*[highest appellate authority]concerned as well as to each State Government concerned with the appeal and to call upon them to furnish the relevant records:

Provided that such records shall, as soon as possible, be returned to the assessing authority or such State Government concerned, as the case may be.]:

(2) The Authority shall adjudicated and decide upon the appeal filed against an order of the assessing authority.

(3) The Authority, after examining the appeal and the records called for, by order, either allow or reject the appeal:

3*[Provided that no appeal shall be rejected unless an opportunity has been given to the appellant of being heard in person or through a duly authorized representative, and 4*[also to each State Government] concerned with the appeal of being heard.]
Provided further that whether an appeal is rejected or accepted, reasons for such rejection or acceptance shall be given in the order.

(4) The Authority shall make an endeavour to pronounce its order in writing within six months of the receipt of the appeal.

(5) A copy of every order made under sub-section (3) shall be sent to the 4*[appellant, assessing authority, respondent and highest appellate authority of the State Government concerned].

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1.Substituted by the Finance Act, 2003. Prior to substitution it read as under:

"assessing authority concerned and to call upon it to furnish the relevant records Provided that such records shall, as soon as possible, be returned to the assessing authority."

2. Substituted for "assessing authority" by the Central Sales Tax (Amendment) Act, 2005.

3.Substituted by the Finance Act, 2003. Prior to substitution it read as under:

"Provided that no appeal shall be rejected unless an opportunity has been given to the appellant of being heard in person or through a duly authorized representative;"

4.Substituted for the words "also to the State Government" by the Finance (No.2) Act, 2004.

5. Substituted for "appellant and to the assessing authority" by the Central Sales Tax (Amendment) Act, 2005.

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(1) The Authority shall have the same powers as are vested in a court under the Code of Civil Procedure, 1908, (5 of 1908) while trying a suit in respect of the following matters, namely:-

(a) Enforcing the attendance of any person, examining him on oath or affirmation;

(b) Compelling the production of accounts and documents;

(c) Issuing commission for the examination of witnesses;

(d) The reception of evidence on affidavits;

(e) Any other matter which may be prescribed.

1*[(1A) The Authority may grant stay of the operation of the order of the highest appellate authority against which the appeal is filed before it or order the 2[deposit] of the tax before entertaining the appeal and while granting such stay or making such order for the 2*[deposit] of the tax, the Authority shall have regard, if the assessee has made 2[deposit] of the tax under the general sales tax law of the State concerned, to such 2*[deposit] or pass such appropriate order as it may deem fit.]

3*[(1B) The Authority may issue direction for refund of tax collected by a State which has been held by the 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:

Provided that the amount of tax directed to be refunded by a State shall not exceed the amount of central sales tax payable by the appellant on the same transaction.]

(2) Every proceeding before the Authority shall be deemed to be a judicial proceeding within the meaning of section 193 and 228 (45 of 1860) of the Indian Penal Code and the Authority shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, (1973 2 of 1974)

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1. Substituted by the Central Sales Tax (Amendment) Act, 2005. Prior to its substitution, sub-section (1A) read as under:

"[(1A) The Authority may grant stay of the operation of the order of the assessing authority against which the appeal is filed before it or order the pre-deposit of the tax before entertaining the appeal and while granting such stay or making such order for the pre-deposit of the tax, the Authority shall have regard, if the assessee has already made pre-deposit of the tax under the general sales tax law of the State concerned, to such pre-deposit.]"

2. Substituted by the Finance Act, 2010 for the following : -"pre-deposit"

3. Inserted by the Finance Act, 2010.
 
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The Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure1*[in all matters, including stay of recovery of any demand] arising out of the exercise of powers under this Act.

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1. Substituted for "in all matters" by the Finance Act, 2003.

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(1) Notwithstanding anything contained in any other law for the time being in force and in section 19 of this Act, the Authority for Advance Rulings constituted under section 245-O of the Income-tax Act, 1961(43 of 1961 shall be notified by the Central Government in the Official Gazette, with such modifications as many be necessary, to make its composition in conformity with section 19 of this Act, as the Authority under this Act till such time an Authority is constituted under that section.

(2) On and from the date of the constitution of the Authority in accordance with the provisions of section 19 of this Act, the proceedings pending with the Authority for Advance Rulings shall stand transferred to the Authority constituted under that section from the stage at which such proceedings stood before the date of constitution of the said Authority.



1*[(1) On and from the commencement of the Central Sales Tax (Amendment) Act, 2005, all appeals (except appeals against orders of the highest appellate authority of the State) pending before the Authority notified under sub-section (1) of section 24 shall stand transferred together with the records thereof to the highest appellate authority of the concerned State.

2[***]

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1. Substituted by the Central Sales Tax (Amendment) Act, 2005. Prior to its substitution, section 25 read as under:

"25. Transfer of pending proceedings. On and from the date when the Authority is constituted under section 19,[any proceeding] arising out of the provisions contained in this Chapter-

(i) Which is pending immediately before the constitution of such Authority before the appellate authority constituted under the general sales tax law of a State or of the Union territory, as the case may be; or

(ii) Which would have been required to be taken before such appellate Authority,shall stand transferred to such Authority on the date on which it is established."

2. Omitted by the Finance Act, 2010 for the following :-

"(2) Such highest appellate authority of the State to which such appeal has been transferred under sub-section (1) on receipt of such records shall proceed to deal with such appeal so far as may be in the same manner as in the case of an appeal filed before such highest appellate authority of the State according to the general sales tax law of the appropriate State, from the stage which was reached before such transfer or from any earlier stage or de novo as such highest appellate authority of the State may deem fit:

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

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An order passed by the Authority under this Chapter shall be binding on1*[each State Government concerned, the assessing authorities] and other authorities created by or under any law relating to general sales tax, in force for the time being in any State2[***].]

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1. Substituted for the words "the assessing authorities" by Finance (No.2) Act, 2004.

2. Omitted for "or Union territory" by the Central Sales Tax (Amendment) Act, 2005.

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Last updated on July, 2016

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