Amendment to Central Sales Tax Act, 1956 —Trade Circular 2T of 2011, dated 17-1-2011.

MVAT UPDATE

44 Amendment to Central Sales Tax Act, 1956 —Trade Circular 2T of 2011, dated 17-1-2011.

By this Circular salient features of the amendments made by the Finance Act, 14 of 2010 to S. 6A of the CST Act, 1956 have been explained.

Provisions of S. 6A(2) allow the Assessing Authority to be satisied that no interstate sale has been effected, apart from verifying the correctness of particulars furnished in Form F before allowing claims of Branch Transfer.

New Ss.(3) has been added to provide that the cases of interstate transfer of goods otherwise than by way of sale can be reopened in the event of discovery of new facts for re-assessment by the Assessing Authority or for revision by higher authority on the ground that findings of the Assessing Authority are contrary to the law.

S. 18A of newly inserted Chapter VA allows a person aggrieved by an order made u/s.6A(2) or (3) to appeal to the highest Appellate Authority of the State against such an order.

The Ss.(1) of S. 20 has been amended to provide for appeal to the Central Sales Tax Appellate Authority against the Tribunal order in respect of issues relating to stock transfer or consignment of goods insofar as it involves a dispute of inter-state nature.

The Ss.(1A) of S. 22 has been amended to allow filing of appeal to the Appellate Authority under CST Act, 1956 without pre-deposit of amount that was required under earlier provisions.

New Ss.(1B) is inserted in S. 22 empowering the Central Sales Tax Appellate Authority to issue directions for refund of tax not due to that State or alternatively direct the State to transfer refundable amount to the State to which CST is due.

Proviso to Ss.(2) of S. 25 is deleted so that the highest Appellate Authority shall not forward the cases to first Appellate Authority.