15. RESTRICTIONS AND CONDITIONS IN REGARD TO TAX ON SALE OR PURCHASE OF DECLARED GOODS WITHIN A STATE. –
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 sale or purchase of such goods inside the State shall not exceed 2four per cent of the sale or purchase price thereof, and such tax shall not be levied at more than one stage;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 or 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 tax levied under such law 5shall 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 in 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 of 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;]
(d) each of the 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.
When raw hides and skins are purchased on the payment of purchase tax are liable to pay Sales tax in respect of dressed hides and skins and levy of Sales tax on the sale of dressed hides and skins would not fall foul of section 15; K.A.K. Anwar & Co. v. State of Tamil Nadu, (1998) 108 STC 258.
Clause (ca) was introduced in 1996, due to which paddy and rice were deemed to be the same commodity and hence exemption allowed; Satnam Overseas (Export) v. State of Haryana, (2003) 130 STC 107.
1. Subs. by Act 31 of 1958, sec. 11, for section 15 (w.e.f. 1-10-1958).
2. Subs. by Act 25 of 1975, sec. 38, for “three per cent.” (w.e.f. 1-7-1975).
3. Certain words omitted by Act 20 of 2002, sec. 155 (w.e.f. 11-5-2002).
4. Subs. by Act 61 of 1972, sec. 12, for “the tax so levied” (w.e.f. 1-4-1973).
5. Subs. by Act 61 of 1972, sec. 12, for “shall be refunded to such person” (w.e.f. 1-4-1973).
6. Ins. by Act 103 of 1976, sec. 8 (w.e.f. 7-9-1976).
7. Ins. by Act 33 of 1996, sec. 87 (w.e.f. 28-9-1996).