IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 15/11/2006 CORAM : THE HONOURABLE MR.JUSTICE K.MOHAN RAM WRIT PETITION NOS.32081 to 32083, 31739 to 31749, 32020 to 32023, 32030 to 32033, 32108 to 32111, 32742 to 32745,32799 to 32807, 33159, 34302 and 34612 to 34615 OF 2003, 2860, 11004, 14060, 16026, 32149, 36372 to 36376 of 2004, 1207, 1208, 3175, 4883, 4884, 5791, 7727, 7728,7799, 8910, 8911, 9271, 9937, 10883, 10884, 12273, 14376, 14410, 17890 to 17892, 18411, 18415, 18507, 20770, 11169, 22443 and 22444 of 2005 and 7936 of 2006 and all connected pending WPMPS N.Jagannathan & Sons, Vaniyambadi. ..Petitioner in WP.No.32081/03. Sankar Traders, No.23, Sivasakthi Nagar, Tirupathur. ..Petitioner in WP.No.32082/03. Sarkar Coconut Co. Neelfield Vaniyambambadi. ..Petitioner in WP.No.32083/03. Arul Agencies, Vaniyambadi. ..Petitioner in WP.No.31739/03. Sri Balaji Coconut Trders, Mettupalayam, Vaniyambadi 635 754. ..Petitioner in WP.No.31740/03. Padma Seenivasalu Coconuts Modagapalli Village, Ambur 635 802. ..Petitioner in WP.No.31741/03. Sri Amman Coconut Traders, Amburpet, Vaniyambadi. ..Petitioner in WP.No.31742/03. K. Purushothaman ..Petitioner in WP.No.31743/03. M.Kannan ..Petitioner in WP.No.31744/03. Sri Vigneshwara Coconut Traders, Amburpet, Vaniyambadi. ..Petitioner in WP.No.31745/03. Sri Vigneshwara Agencies, Vaniyambadi. ..Petitioner in WP.No.31746/03. https://hcservices.ecourts.gov.in/hcservices/ Sri Venkateshwara Coconut Co, Vellakuttai, Vaniyambadi. ..Petitioner in WP.No.31747/03. Sri Venkateswara Coconut Traders, Chennampet, Vaniyambadi. ..Petitioner in WP.No.31748/03. Om Vijalakshmi Coconut, Vaniyambadi. ..Petitioner in WP.No.31749/03. M.P.M.Vijayalakshmi & Co., Pudur, Vaniyambadi. ..Petitioner in WP.No.32020/03. Anjana Agencies, Chennampet, Vaniyambadi. ..Petitioner in WP.No.32021/03. Matha & Company, Vaniyambadi. ..Petitioner in WP.No.32022/03. Purula Coconut co., Amburpet, Vaniyambadi. ..Petitioner in WP.No.32023/03. M.R.Mohamed Khaleel, Tirupathur. ..Petitioner in WP.No.32030/03. M.K.Azizur Rahman, Tirupathur. ..Petitioner in WP.No.32031/03. Hindustan Coconut Traders, Tirupathur. ..Petitioner in WP.No.32032/03. K.M.Jayaraman ..Petitioner in WP.No.32033/03. A.A.Gee and Company, Fort, Vaniyambadi. ..Petitioner in WP.No.32108/03. Barath Coconut Company, Vaniyambadi. ..Petitioner in WP.No.32019/03. Sri Lakshmi Agencies, Vaniyambadi ..Petitioner in WP No.32110/2003 M.Palani Mudiar Son Chettiappanoor, Vaniyambadi ..Petitioner in WP No.32111/2003 Lakshmi Trading Company, Gudiyattam ..Petitioner in WP No.32742/20003 https://hcservices.ecourts.gov.in/hcservices/ Kavitha Trading Co., Gudiyattam ..Petitioner in WP No.32743/2003 K.O.Sabeel Ahmed ..Petitioner in WP No.32744/2003 P.G.Selvaraj ..Petitioner in WP No.32745/2003 Gajalakshmi Trading co., Gudiyattam ..Petitioner in WP No.32799/2003 G.K.Manickam Chetty Sons & Co., Gudiyattam ..Petitioner in WO No.32800/2003 P.K.G.Manoharan ..Petitioner in WP No.32801/2003 G.G.Trading Co., Gudiyattam ..Petitioner in WP No.32802/2003 Karthigeya Traders ..Petitioner in WP No.32803/2003 Saaravana Coconut Company Vaniyambadi ..Petitioner in WP No.32804/2003 K.O.Rajeeque Ahmed ..Petitioner in WP No.32805/2003 K.O.Basheer Ahmed Coconut Traders Melalathur, Gudiyattam Taluk ..Petitioner in WP No.32806/2003 K.O.Basheer Ahmed Individual Gudiyattam Taluk ..Petitioner in WP No.32807/2003 G.M.B. Star Coconut, Vaniyambadi Vellore ..Petitioner in WP No.33159/2003 P.K.R.Coconut Traders by its Proprietor, Vaniyambadi ..Petitioner in WP No.34302/2003 Arihanth Cocounut Co. Gudiyattam ..Petitioner in WP No.34612/2003 G.K.Manickam Chetty Co., Gudiyatham -632 602 ..Petitioner in WP 34613/2003 Jain Coconut Co., Gudiyattam ..Petitioner in WP No.34614/2003 https://hcservices.ecourts.gov.in/hcservices/ Vardhaman Traders, Gudiyatham ..Petitioner in WP No.34615/2003 Sri Ganesh Cocounut Traders Vaniyambadi Road, Tirupathur ..Petitioner in WP No.2860/2004 S.Pavithra & Co.rep. by its Partner Smt. Manimozhi, Sholavanthan ..Petitioner in WP No.11004/2004 C.A.B.Electricals & Cocounut Merchants, Gudiyadam ..Petitioner in WP No.14060/2004 Ghani Trading Co. rep. by its Proprietor M.M.Mohamed Servai Chokkalingapuram ..Petitioner in WP 16026/2004 Sri. Subalakshmi Cocoanut Co. rep. by its Proprietor M.D.Mahalingam ..Petitioner in WP No.32149/2004 V.K.T.Traders, rep. by its Proprietor, V.T.Chandrasekaran ..Petitioner in WP No.36372/2004 C.T.Enayathullah ..Petitioner in WP 36373/04 Hafeez Coconuts rep. By its Proprietor, F.Hafeez Ul Rahman. ..Petitioner in WP 1207/2005 K.C.R.Traders rep. by its Proprietor H.Mustafa ..Petitioner in WP 1208/2005 Quality Coconut, Coconut merchant & Commissioner Agent rep. by its Proprietor Mohamed Aslam ..Petitioner in WP No.3175/2005 Anand Coconut Traders rep. by its Proprietor, A. Janardanan ..Petitioner in WP No.4883 & 4884/2005 Ataulla & Co. rep. by its Partner, Abaulla ..Petitioner in WP No.5791/2005 https://hcservices.ecourts.gov.in/hcservices/ B.Dinaklaran Traders, rep. by its Proprietor B.Dinakaran ..Petitioner in WP 7727/2005 V.K.T. & Co., rep. by its Managing Director Mr.V.T.Chandrasekaran ..Petitioner in WP 36374/2004 MS Coconut Company rep. by its Proprietor M.Senguthuvan ..Petitioner in WP 36375/2006 Afrosy Coconut Traders rep. by its Proprietor Afrosy ..Petitioner in WP 36376/2006 Thilaklavathi Coconut Co. rep. by Proprietor S.Balaraman ..Petitioner in WP 7728/2005 Sankar Traders Coconut merchant & Order Supplier, Nimmiampet (via) Vaniyambadi ..Petitioner in WP 7799/2005 Himalaya Coconut Co. rep. by its Partner R.Neelakandan ..Petitioner in WP No.8910/2005 Taj Traders rep. by its Prop. G.Syed Tajudeen ..Petitioner in WP 8911/2005 K.P.A. Coconuts rep. by Prop. K.Paniventhan ..Petitioner in Wp No.9271/2005 G.M.Khalilur Rahman South India Coconut Traders rep. by its Prop. G.M.Khalilur Rahman ..Petitioner in WP No.9937/2005 V.N.Cocoanuts, Anjikuppam Village rep. by its Proprietor ..Petitioner in WP No.10883/2005 Sri Varadharaja Coconut Company rep. by its Proprietor ..Petitioner in WP No.10884/2005 M/s. S.Md. Aslam, rep. by its Proprietor ..Petitioner in WP No.12273/2005 Sri Vishwa Lakshmi Traders rep. by its Proprietor Kavitha. ..Petitioner in WP No.14376/2005 https://hcservices.ecourts.gov.in/hcservices/ M/s. Amaravathi Traders rep. by its Proprietor, Tamizh Selvi ..Petitioner in WP No.14410/2005 Kavitha Coconut Taders prop. S.N.Subramani ..Petitioner in WP No.17890/05 G.S.Coconut Proprietor S.Syed Ghouse ..Petitioner in WP 17891/2005 Sri Sakthi Traders Cocount Merchants rep. by its Partner M.R.Subramani ..Petitioner in 17892/2005 K.L.M.Traders rep. by its Proprietor K.Loganthan ..Petitioner in WP No.18411/2005 K.L.S.Coconut Traders rep. by its Proprietrix Mahalakshmi .. Petitioner in WP No.18415/2005 Basheer Coconut Merchant rep. by Prop. K.A.Abdul Raheem ..Petitioner in WP No.18507/05 G.Jagadeesan Proprietor Engeyes General Merchants ..Petitioner in WP 20770/2005 Deepam Coconut Company rep. by its Partner R.Kesvaraju ..Petitioner in WP No.11169/2005 Rizwan Coconut Company, rep. by Prop.V.M.Zabrudeen ..Petitioner in WP 22443/2005 Kamal Co., Coconut Merchant rep. by its Prop. V.R. Mohiuddin ..Petitioner in WP 22444/05 Imperial coconuts rep. by its Partner A.K.Mohammed Abbas ..Petitioner in WP 7936/2006 -vs- The Dy. Commercial Tax Officer, Vaniyambadi. ..1st Respondent in WP No.32081/2003 https://hcservices.ecourts.gov.in/hcservices/ The Commercial Tax Officer, FAC, Tirupathur ..1st Respondent in WP No.32082/2003 The Dy. Commercial Tax Officer (Main) Gudiyatham (West) ..1st Respondent in WP No.31739/2003 The Dy. Commercial Tax Officer, Vaniyambadi. ..1st Respondent in WP.Nos.32083/2003, 31740/03. The Dy. Commercial Tax Officer (Addl.) Gudiyatham (West) ..1st Respondent in WP No.31741/2003 The Commercial Tax Officer, Vaniyambadi ..1st Respondent in WP No.31742/2003 The Dy. Commercial Tax Officer (Main) Gudiyatham (West) ..1st Respondent in WP No. 31743/2003 The Dy. Commercial Tax Oficer, Vaniyambadi ..1st Respondent in WP No.31744/2003 The Commercial Tax Officer, Vaniyambadi ..1st Respondent in WP No.31745/2003 The Commercial Tax Officer, Vaniyambadi ..1st Respondent in WP No.31746/2003 The Commercial Tax Officer, Vaniyambadi ..1st respondent in WP No.31747/2003 The Commercial Tax Officer, Vaniyambadi. ..1st Respondent in WP No.31748/2003 The Commercial Tax Officer, Vaniyambadi ..1st Respondent in WP No. 31749/2003 https://hcservices.ecourts.gov.in/hcservices/ The Dy. Commercial Tax Officer, Vaniyambadi ..1st Respondent in WP No.32020/2003,32108/03 The Commercial Tax Officer, Vaniyambadi ..1st Respondent in WP No.32021/2003, 32022 & 32023/03, 32033/2003 The Commercial Tax Officer (FAC) Tirupathur District. ..1st Respondent in WP No.32030/2003 to 32032/03 The Commercial Tax Officer, Vaniyambadi ..1st Respondent in WP Nos. 32109/03 to 32111/2003 The Dy. Commercial Tax Officer (Addl.) Gudiyatham (West) ..1st Respondent in WP No.32742/2003 The Dy. Commercial Tax Officer, Gudiyatham (West) ..1st Respondent in WP No.32743/2003 to 32745/03 The Dy. Commercial Tax Officer, Gudiyatham (West) ... 1st Respondent in W.P.No.32799/03 The Dy Commercial Tax Officer (Main) Gudiyatham (West) ... 1st Respondent in W.P.No.32800/03 The Dy commercial Tax Officer, Gudiyatham (West) ... 1st Respondent in W.P.No.32801 and 32802/03 The Dy Commercial Tax Officer Vaniyambadi. ... 1st Respondent in W.P.No.32803/03 The Commercial Tax Officer Vaniyambadi ... 1st Respondent in W.P.No.32804/03 The Dy Commercial Tax Officer(Main) Gudiyatham[West] ... 1st Respondent in W.P.No.32805 to 32807/03 https://hcservices.ecourts.gov.in/hcservices/ The Commercial Tax Officer Vaniyambadi, Vellore. ... 1st Respondent in W.P.No.33159/03 The Dy Commercial Tax Officer Gudiyatham (East) ... 1st Respondent in W.P.No.34612/03 The Commercial Tax Officer Gudiyatham (West) Gudiyatham ... 1st Respondent in W.P.No.34613/03 & 34614/03 The Dy. Commercial Tax Officer (Addl) Gudiyatham (West) ... 1st Respondent in W.P.No.34615/03 The Commercial Tax Officer (FAC) Tirupathur. ... 1st Respondent in W.P.No.2860/04 The Dy. Commercial Tax Officer Gudiyatham (East) ... 1st Respondent in W.P.No.14060/04 The Dy. commercial Tax Officr ( West) Gudiyatham, Vellore District. ... 1st Respondent in W.P.Nos.32149/04, 36372 to 32376/04, 1207/05 The Deputy Commercial Tax Officer, Vaniyambabi, Vellore District. ...1st Respondent in WP.1208/05. The Commercial Tax Officer (Bazaar Circle) Salem, Salem District. ... 1st Respondent in W.P.No.3175/05 The Commercial Tax Officer Krishnagiri. ... 1st Respondent in W.P.No.4883 & 4884/05 The Dy Commercial Tax Officer, (WEST)Gudiyatham, Vellore District . .. 1st Respondent in W.P.No.5791/05 https://hcservices.ecourts.gov.in/hcservices/ The Dy Commercial Tax Officer[East], Gudiyatham, Vellore District ... 1st Respondent in W.P.Nos.7727 & 7728/05 The Dy Commercial Tax Officer, vaniyambadi, Vellore District. ... 1st Respondent in W.P.No.7799/05 Dy commercial Tax Officer Tirupathur Assessment Circle Tirupathur, Vellore District ... 1st Respondent in W.P.No.8910/05 The Commercial Tax Officer Tirupathur Assessment Circle Tirupathur, Vellore district ... 1st Respondent in W.P.No.8911/05 Dy commercial Tax Officer, Vaniyambadi, Vellore District ... 1st Respondent in W.P.No9271/05 The Dy commercial Tax Officer Tirupathur Assessment Circle Tirupathur, Vellore District ... 1st Respondent in W.P.No.9937/05 The Dy Commercial Tax Officer (WEST) Gudiyatham, Vellore District ... 1st Respondent in W.P.No.10883/05 & 10884/05 The Commercial Tax Officer, Tirupathur, Vellore District. ... 1st Respondent in W.P.No.12273/05 The Commercial Tax Officer Tirupathur Assessment Circle, Tirupathur, Vellore District. ... 1st Respondent in W.P.No.14376/05, 14410/05. The Dy Commercial Tax Officer Tirupathur, Vellore District ... 1st Respondent in W.P.No.17890 to 17892/05 https://hcservices.ecourts.gov.in/hcservices/ The Dy Commercial Tax Officer Gudiyatham (West) ... 1st Respondent in W.P.No.18411/05 The Dy Commercial Tax Officer (Addl) Gudiyatham (West) ... 1st Respondent in W.P.No.18415/05 Dy Commercial Tax Officer West Gudiyatham Taluk, Vellore District ... 1st Respondent in W.P.No.18507/05 The Commercial Tax Officer Swamangalam Circle, Salem. ... 1st Respondent in W.P.No.20770/05 The Dy Commercial Tax Officer Vellore Rural, Vellore ... 1st Respondent in W.P.No.11169/05 Dy Commercial Tax Officer (East) Gudiyatham, Vellore District ... 1st Respondent in W.P.No.22443 & 22444/05 The State of Tamilnadu rep by the Secretary to Government Department of Commercial Taxes & Religious Endowments Fort St. George, Chennai-9. Union of India rep by the Secretary Ministry of Finance Department of Revenue, New Delhi. ... Respondents 2 & 3 in W.P.32081, 32082, 32083, 31739, 31740, 31741, 31742, 31743, 31744 to 31749/03 32020/03, 32021 to 32023/03, 32030 to 32033/03, 32108/03 to 32109 to 32111/03, 32742 to 32745/03,32799 to 32807/03 33159/03, 34612/03, 34613 OF 2003, to 34615/03 2860/04 14060, 32149/04 36372 to 36376 of 2004, 1207/05, 1208/05, 3175, 5791, 7727, & 7728/05, 7799, 9271, 10883 & 10884/05 , 12273, 17890 to 17892/05, https://hcservices.ecourts.gov.in/hcservices/ 18411, 18415, 18507, 20770, 11169, 22443 and 22444 of 2005 1. Union of India rep by the Secretary Ministry of Finance Department of Revenue New Delhi. 2. The State of Tamilnadu rep by the Secretary to Government Department of Commercial Taxes and Religious Endowments, Fort St. George Chennai-9. 3. The Dy Commercial Tax Officer Vaniyambadi- 635 753. ... Respondents in W.P.NO.34302/03 1. The Commercial Tax Officer Thirumangalam. ... 1st respondent in W.P.11004/04 2. The State of Tamilnadu rep by the Secretary to Government Commercial Taxes Department Fort St. George, Chennai-9. ... 2nd Respondent in W.P.11004/04 in W.P.8910/05, 8911/05, 9937/05, 14376/05, 14410/05 3. Union of India rep by the Secretary Ministry of Finance, Department of Revenue New Delhi. ... 3rd Respondent in W.P.11004/04 in W.P.8910/05, 8911/05, 9937/05, 14376/05, 14410/05 1. The Dy Commercial Tax Officer Melur. https://hcservices.ecourts.gov.in/hcservices/ 2. The State of Tamilnadu rep by the Secretary to Government Commercial Taxes Department, Fort St. George, Chennai-9. 3. Union of India, rep by the Secretary Ministry of Finance, Department of Revenue, New Delhi. ... Respondents in W.P.No.16026/04 The state of Tamilnadu rep by the Secretary to Government Department of Commercial Taxes & Religious Endowments, Fort St. George, Chennai-9. ... 2nd Respondentin W.P.Nos.4883 & 4884/05 1. Union of India rep by its Secretary Ministry of Finance, Department of Revenue New Delhi. 2. The State of Tamilnadu rep by Secretary to Government Department of Commercial Taxes and Religious Endowments, Fort St. George, chennai-9. 3. The Dy Commercial Tax Officer, Salem Rural Circle, Salem. ... Respondents in W.P.No.7936/06 Writ Petition No.34302/03: Petitions under Article 226 of the Constitution of India, praying to issue a Writ of Declaration or any other order or direction in the nature of Writ declaring Central Sales tax on the inter state sales of watery coconuts effected by the dealers in disregard to Serial No.17, part B of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959, read with Section 8 and Section 9(2) of the Central Sales Tax Act, 1956 as ultra vires, invalid unconstiuttional and without the authority of law, in so far as the petitioner is concerned. https://hcservices.ecourts.gov.in/hcservices/ WP.No.4883/2005: To issue a Writ of Certioari to call for the records on the files of the 1st respondent herein in CST.No.44569/2002-03 dt. 31.12.2004 quashing the said proceedings. WP.No.7936/2006: To issue a Writ of Declaration declaring that the 3rd respondent is incompetent to impose or recover Central Sales Tax on the inter-state Sales of watery coconuts by virtue of serial No.17, part B of the third Schedule to the Tamil Nadu General Sales Tax Act 1959 read with Section 8 and Section 9(2) of the Central Sales Tax Act 1956. WP.Nos.11004/04, 16026/04: To issue a Writ of Declaration or any other appropriate writ, order or direction in the nature of a writ, declaring that the First and Second respondents herein are not competent to impose or recover central sales tax on the inter-state sales of watery coconuts by virtue of Serial No.17, Part B of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959, read with Section 8 and Section 9(2) of the Central Sales Tax Act, 1956, since Serial No.6(viii) of the Second Sechedule to the Tamil Nadu General Sales Tax Act, 1959 is inconsistent with section 14(vi)(viii) of the Central Sales Tax Act, 1956. Prayer in all Wps. Petitions filed under Article 226 of the Constitution fo India, to issue a Writ of Declaration or any other appropriate Writ, Order or direction under Article 226 of the Constitution of india, declaring that the First and Second Respondents herein are incompetent to impose or recover Central Central Sales Tax on the inter-State sales of watery coconuts by virtue of Serial No.17, Part B of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959, read with Section 8 and Section 9(2) of the Central Sales Tax Act, 1956, since Serial No.6(viii) of the Second Schedule to the Tamil Nadu General Sales Tax Act, 1959 is inconsistent with Section 14(vi) (viii) of the Central Sales Tax Act, 1956 respectively in other Wps. For Petitioners in WP.NOs.32081 to 32083, 31739 to 31749, 32020 to 32023, 32030 to 32033, 32108 to 32111, 32742 to 32745, 32799 to 32807, 33159 and 34612 to 34615 of 2003, 2860 and 14060 of 2004 and 4883 & 4884 of 2005 : Mr.C.Natarajan, SC for Mr.N.Inbarajan For Petitioner in WP.No.34302 of 2003 : Mr.S.Gnaneswaran For Petitioners in WP.Nos.11004 and 16026 of 2004 : Mr.P.Radhakrishnan For Petitioners in WP.Nos.32149 & 36372 to 36376 of 2004 and 1207, 1208, 3175, 5791, 7727, 7728, 7799, 9271, 10883, 10884, 12273, 17890 to 17892, 18507, 22443 22444 and 11169 of 2005 : Mr.G.Jeremiah For Petitioners in WP.NOs.8910, 8911, 9937, 14376 & 14410 of 2005 : Mr.K.Soundararajan For Petitioners in WP.NOs.18411 and 18415 of 2005 : Mr.T.Dhanyakumar https://hcservices.ecourts.gov.in/hcservices/ For Petitioner in WP.NO.20770 of 2005 : Mr.P.Jagadeesan For Petitioner in WP.No.7936 of 2006 : Mr.K.Selvaraj For 1st Respondent in all Wps. : Mr.B.Nedunchezian, G.A.[Taxes] For 3rd Respondent in WP.7936/06, For 2nd Respondent : Mr.T.Ayyasamy, Spl. GP[Taxes] For 3rd Respondent in all Wps. 1st Respondent in WP.7936/06 : No Appearance. C O M M O N O R D E R The main question that is involved for consideration in these writ petitions is as to whether interstate sales of watery coconuts are liable to sales tax under Central Sales Tax Act, 1956 (hereinafter referred to as the Central Act). 2. Learned counsel on either side submit that the above said question has to be considered in the light of the provisions set out hereunder : "i. Section 6 of the Central Act : Liability to tax on interstate sales : '(1) Subject to the other provisions contained in this Act, every dealer shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, not being earlier than thirty days from the date of such notification, be liable to pay tax under this Act on all sales of goods other than electrical energy effected by him in the course of interstate trade or commerce during any year on and from the date so notified : PROVIDED that a dealer shall not be liable to pay tax under this Act on any sale of goods which, in accordance with the provisions of sub.section (3) of Section 5 is a sale in the course of export of those goods out of the territory of India. (1A) A dealer shall be liable to pay tax under this Act, on a sale of any goods effected by him in the course of interstate trade or commerce notwithstanding that no tax would have been leviable (whether on the seller or the purchaser) under the sales tax law of the appropriate State if that sale had taken place inside that State.' ii. Section 8(2)(A) of the Central Act : (as it stood from 1.4.1973 to 10.5.2002) '(2-A) Notwithstanding anything contained in sub.section (1-A) 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 https://hcservices.ecourts.gov.in/hcservices/ 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 tax generally or is subject to tax generally at a rate which is lower than four per cent (whether called a tax or fee or any other name), shall be nil or, as the case may be, shall be calculated at the lower rate.' iii. Section 8(2)(C) of the Central Act (as it stands today effective from 11.5.2002) : '(2) The tax payable by any dealer or his turnover insofar as the turnover or any part thereof relates to the sale of goods in the course of interstate trade or commerce not falling within sub.section (1),- (a)... (b)... (c) in the case of 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 tax generally shall be nil, and for the purpose of making any such calculation under clause (a) or clause (b), 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. 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 conditiions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods.' iv. Section 14 of the Central Act : Section 14(vi) of the Central Act (as it stood from 15.1.1957 to 31.3.1973) : 'vi. Oil seeds that is to say, seeds yielding non- volatile oils used for human consumption, or in industry or in the manufacture of varnishes, soaps and the like or in lubrication and volatile oils used in medicines, perfumes, cosmetics and the like. Section 14(vi) of the Central Act as it stands today (effective from 1.4.1973) viii. Coconut (i.e copra excluding tender coconuts) (cocos nucifera).' v. Section 15 of the Central Act : (as it stood from 1.10.1958 to 10.5.2002) 'Restrictions and conditions in regard to tax on sale or purchase of declared goods within a State https://hcservices.ecourts.gov.in/hcservices/ 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 declared goods, be subject to the following restrictions and conditions, namely :- 'a. The tax payable under that law in respect of any dealer or purchase of goods inside the State shall not exceed for per cent of the sale or purchase price thereof and such tax shall not be levied at more than one stage.' Section 15 of the Central Act as it stands today : (a) the tax payable under that law in respect of any sale or purchase of such goods inside the State shall not exceed four per cent of the sale or purchase price thereof.' vi. II Schedule – Tamilnadu General Sales Tax Act, 1959 (hereinafter referred to as the State Act) : S.No. Description of Goods Point of Levy Effective From 1. 2. 3. 4. 3-B Dessicated coconut At the point of 27.3.2002 first sale in the State 6(viii) 6. Oil seeds, that is At the point of to say, (as it stood last purchase in ..... prior to 1.4.1994) the State Coconut (i.e copra excluding tender coconuts (cocos nucifera) 6(viii) At the point of as last purchase amended Coconut including in the State by 1.4.1994 by Act copra (cocos nucifera) a dealer for 32/1994 crushing oil -------------------------------------------------------------------------- vii. III Schedule - the State Act : 'Part A : enumerates the goods that are subjected to additional duties of excise and for which sales tax cannot be levied. (Part B was inserted for the first time by Act 32 of 1994). https://hcservices.ecourts.gov.in/hcservices/ Part B : Entry 10 : coconut, copra and tender coconut other than those falling under the Second Schedule (with effect from 1.4.1994). Entry 17 : coconut, copra other than those falling under the Second Schedule (effective from 27.3.2002) Entry 28 : fresh vegetables, tender coconut, potatos, garlic and fruits (effective from 27.3.2002)'. viii.Clarifications/Circulars issued by the Commissioner of Commercial Taxes : 'Acts Cell – III/65/65129/98/12.3.1999 Circular Sub: C.S.T.Act, 1956 – Clarification on rate of tax of interstate sale of coconuts – regarding. Ref : This office Lr.No.Acts Cell III/84896/96 dated 22.7.1998. The rate of tax on the last purchase of coconuts was reduced to 2% with effect from 5.3.1997 by notification issued under Section 17(1) of the TNGST Act, 1959 in notification No.II(1)/ CTRE/25(b)/97 dated 1.4.1997. Therefore, it is clear that interstate sale of coconuts is taxable at 2% with 'C' form from 5.3.1997 to 31.3.1997. However, another notification was issued under section 8(5) of the CST Act in notification NO.II (1)/CTRE/22(a-11)/97 dated 5.3.1997 reducing the tax payable in respect of sale of coconuts or copra in the course of interstate trade to 2%. Though it is generally mentioned in the notification that 'the tax payable by any dealer under the said Act' without mentioning section 8(1) and 8(2), the intention of the Government was to reduce the tax payable under Section 8(2) of the CST Act. If the intention of the Government was to reduce the rate of tax to 2% only on production of 'C' form, then there is no necessity to issue a separate notification under the CST Act, since the rate of tax is already 2% as per the reduced rate available under the Tamilnadu General Sales Tax Act. The Government have made a variation to the notification NO.II(1)/CTRE/25(b)/97 dated 1.4.1997 reducing the rate from 4% to 1% in respect of the tax payable by any https://hcservices.ecourts.gov.in/hcservices/ dealer under the said Act at the point of last purchase of coconut including copra in the State for crushing oil in notification No.II/(1)/CTRE/41(c-3)/98 dated 27.3.1998. In view of this notification the interstate sale of coconut with 'C' form is taxable at 1% and without 'C' form at 2% with effect from 27.3.1998. The Government by notification No.II(1)/CTRE/ 43(d-6)/98 dated 7.4.1998 have reduced the rate to 1% in respect of the sale of coconut including copra effected by any dealer in the course of interstate Trade/Commerce. Hence, the interstate sale of coconut is taxable at 1% with or without 'C' form. In the above circumstances, the rates of tax under the CST Act 1956 on the interstate sale of coconuts are claried as follows : Period With 'C' Form Without 'C' Form 5.3.97 to 26.3.98 2% 2%