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Unit 12: Central Sales Tax

suppression of facts, or contravention of any of the provisions of this Act or of the Rules Notes
made thereunder with intent to evade payment of duty, the person who is liable to pay
duty as determined under sub-section (2) of section 11A, shall also be liable to pay a
penalty equal to the duty so determined.
Provided that where such duty as determined under sub-section (2) of section 11A, and the
interest payable thereon under section 11AB, is paid within thirty days from the date of
communication of the order of the Central Excise Officer determining such duty, the
amount of penalty liable to be paid by such person under this section shall be twenty-five
per cent."

Source: http://220.227.161.86/20925frpubcd_bos1.pdf

12.12 Summary

 The rates of tax on declared goods are lower as compared to the rate of tax on goods in the
second category.
 The tax is levied under this act by the Central Government but, it is Collected by that state
government from where the goods were sold.

 The tax thus collected is given to the same state government which collected the tax.
 In case of union Territories the tax collected is deposited in the consolidated fund of India.

 The rules regarding submission of returns, payment of tax, appeals etc. are not given in
the act.

 For this purpose, the rules followed by a state in respect of its own sales tax law shall be
followed for purpose of this act also.

 Even though the central sales tax has been framed by the central government but, the state
governments are allowed to frame such rules, subject to such notification and alteration as
it deem fit.

 It is the aggregate of the sale prices received and receivable by the dealer in respect of sales
of any goods in the course of inter-state trade or commerce made during a prescribed
period.
 Prescribed period is the period in which sales tax return is filed.

12.13 Keywords

Ascertained goods: It means goods are segregated out of the whole lot which are intended to be
sold.
Custom frontier: The limits of the area of customs station in which imported goods or export
goods are ordinarily kept before clearance by customs authorities.
Hypothecation: It means a pledge without transferring the possession of goods to the lender.
The owner of goods can use his goods in the normal course of his business. But, if the owner fails
to repay the loan to the lender then lender can take possession of the hypothecated goods.
Pledge: It means transferring possession of goods to the lender in order to get loan.
Single Place of business: If a dealer has single place of business in the appropriate State and he is
registered in that state, he shall apply to the sales tax authority of that state only for obtaining
registration under central sales tax Act.

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