The Central Sales Tax (Amendment) Act, 1969 (Act no. 28 of 1969) was enacted as an Act of Central Government, from the categories of taxation laws. The sole purpose and object for which the present legislation was provided is to amend, further the provisions of the Central Sales Tax Act, 1956 (Act no. 74 of 1956). The Act of 1956 is original legislation on the subject of central level taxation on sales and the present enactment is one of the Amending laws provided for amending the provisions of the Original of Act 1956. The concerned Original Act was provided for formulating principles to determine as to when a sale or purchase of goods takes place while during the inter-State and inland and outside the India i.e. Export and Import in trade or commerce and also for imposing and collecting and also distributing taxes on such sales of goods. As such the Original Act is one of great importance in the field of taxation, however, the provisions of that Act were may times Amended till now, i.e. around twenty three times by different Amending laws, one of which is present enactment. The present Amending Act was enacted in the 20th year of republic of India and was assented by the President of India on 30th August, 1969.
In so far as the amendments in the Original legislation are concerned, the Act at the first instance sought to amend the provisions of section 2 of that Act, where originally, certain terminologies used in the enactment were defined for better interpretation purpose. In the same provision, the term ‘Turnover’ in relation to the to dealer concerned was defined, as an aggregate of the sale prices received in respect of sales of any goods while during the course of inter-State trade or commerce which was made during any prescribed period. The manner in which such turnover was to be determined, was provided to be prescribed one, however, the Amending Act sought to change this, and add that the said manner to be as such as provided in the Original Act and the rules made under that Act. Moreover, in chapter III of the Original Act, in the first provision thereof i.e. in Section 6, further amendments were sought by this Act. Said provisions was providing for liability of the Dealer as to payment of tax on the sales of goods during the course of inter-state trade or commerce for every year. However, the sales of electrical energy were excluded from the purview of this provision. To this provision, the Amending Act sought to add a new provisions where dealer a condition was provided as irrespective of whatever contained in the provisions of sale tax law of the concerned State from which the sale if have effected, the dealer will be liable to pay tax under that Original Act. Further, the Amending Act sought changes in the original section 8, where the Original Act makes provisions as to rate of tax in relation to such sales in inter- state trade and commerce, however, the provisions in which specifically the amendments were sought by this Act, i.e. Sub- section (2A) of that Section, was itself removed by the Finance Act of 2002, as such the said sub section is not in existence.
The major amendment in the Original Act was that of insertion of new provision of Section 8A relating to the determination of the turnover of the Dealer for taxation purpose in that Act. The provisions provides for certain deductions from the aggregate selling prices.
Further, section 9 of the Original Act was replaced by the new provision which makes provisions to the effect that the Government of India is entitled to impose and collect the tax from the dealer for such sale during the course of inter- state trade or commerce. And such imposition and collection of tax should be done by the authority authorized for Government of India as under the provisions of the sales tax laws of the concerned State, from where such sale was performed. And all such proceeds recovered as tax or even as penalty, are required to be assigned to that State. However, proceeds recovered from the sale done in the Union Territories, the same should be credited to the Consolidated Funds of India. Further the provisions of section 10A of the Original Act, as it is dealing with the penalty imposition in place of prosecution, the Amending Act sought to add a new sub section to it. Said Sub section is dealing with collection of penalty under that section to be done by the Government of India in certain situations. Further, Amending Act sought amending section 13 of the Original Act, where the Central Government was originally, empowered to make rules on certain matters given. Notably, the provisions up to this amendment as contained in the Amending Act, were repealed by the Act no. 56 of the year 1974.
The provisions of this Amending Act also sought to validate the assessments, imposition, collections, any actions, etc. done prior to the date i.e. 9th day of June, 1969, within the provisions of Original Act. Also any tax which was not collected by the Dealer between the period of November, 10th, 1964 and June, 9th, 1969 in relation to the any sale in respect of which there was condition in the Original Act prior to these amendments, that there should not be collected any tax in relation to those goods sold, then the dealer is exempted under this Act to from payment of any tax in relation to that sale. And lastly, the ordinance i.e. The Central Sales Tax (Amendment), Ordinance, 1969 was sought to be repealed by the ending provision of this Amending Act, however, the actions taken under that Ordinance were protected.
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