 the central sales tax seconq (amendment) bill, 1958(as introduced in lok sabha)  the central sales tax (second amendment) bill, 1958 (as introduced in lok: sabka) a billfurther to amend the central sales tax act, 1956 bz it enacted by parliament in the ninth year of the republic 01 india as follows:-1 (1) this act may be called the central sales tax (second short title amendment) act, 1958:!=~ s (2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint 74 of 1956 2 ~ section 2 of the central sales tax act, 1956 after referred to as the principal act),-(herein- amendment of ,ectioa a (i) in clause (a), the words "one or more" in sub-clause 10 (ii), and the explanation shall be omitted; (u) in clause (b), for the words "selling goods", the words "buying or selling goods" shall be substituted; (iii) in clause (d), after the words "does not include", the word "newspapers" shall be inserted; i~ (iv) after clause (d), the following clause shall be inserted, namely:-, (tid) "place of business" includes a warehouse godown or other place where a dealer stores his goods and any place where he keeps his books of accounts it 3 section 6 of the principal a~t shall be re-numbered 88 8ublaction (1) thereof, and after sub-section (1) as 80 re-numbered, the following sub-section shall be inserted, namely:-"(2) notwithstanding any thine contained in sub-tlection (1), where a sale in the course of inter-state trade or com- s merce of goods of the description referred to in sub-section (3) of section 8-(a) has occasioned the movement of such goods from one state to another; or (b) has been effected by a transfer of documents of 10 title to such goods during their movement from one state to another; any subsequent sale to a registered dealer during such movement effected by a transfer of documents of title to such goods shall not be subject to tax under this act: is provided that no such subsequent sale shall be exempt from tax under this sub-section unless the dealer effecting the sale furnishes to the prescribed authority in the prescribed manner a certificate duly filled and signed by the registered dealer from whom the goods were purchased, containing the 20 prescribed particulars"  4 in section 7 of the principal act,-(0 for sub-section (2), the following sub-section shall be substituted, namely:-"(2) any dealer liable to pay tax under the sales tax 25 law of the appropriate state, or where there is no such law in force in the appropriate state or any part thereof, any dealer having a place of business in that state or part, as the case may be, may, notwithstanding that he is not liable to pay tax under this act, apply for registration 30 under this act to the authority referred to in sub-section (1), and every such application shall contain such particulars as may be prescribed  ezplanation-for the purposes of this sub-section, a dealer shall be deemed to be liable to pay tax under the 35 iales tax law of the appropriate state notwlthstandinl that under such law a sale or purchase made by him is exempt from tax or a refund or rebate of tax is admissible in respect thereof"; (ii) for sub-section (4), the following sub-section shall be 5 substituted, namely:- (4) a certificate of registnltion granted under this section may-10 is (a) either on the application of the dealer to whom it has been granted, or, where no such application has been made, after due notice to the dealer, be amended by the authority granting it if he is satisfied that by reason of the registered dealer having changed the neme, place or nature of his business or the class or classes of goods in which he carries on business or for any other reason the certificate of registration granted to him requires to be amended; or 20 (b) be cancelled by the authority granting it where he is satisfied, after due notice to the dealer to whom it has been granted, that he hes ceased to carryon business or has ceased to exist, or in the case of a dealer registered under sub-section (2) has ceased to be liable to pay tax under the sales tax law of the appropriate state or for any other sufficient reason" 5 for s\lb-sections (1), (2), (3) and (4) of section 8 of the prin- amendment 25 clpal act, the following sub-sections shall be substituted, namely: _ of iectiod 8 i (1) every dealer, who in the course of inter-state trade or commerce--(a) sells to the government eny goods; or (b) sells to a registered deder other than the govern-30 ment goods of the description referred to in sub-section (3); shall be liable to pay tax under this act, which shall be one per cent of his turnover (2) the tax payable by any dealer on his turnover in so iqr as the turnover or any part thereof relates to the sale of goods 35 in the course of inter-state trade or commerce not falling within sub-section (1) shall be--(a) in the case of declared goods, calculated at the rate applicable to the sale or purchase of such goods inside the appropriate state; and (b) in the ease of goods other than declared goodi, shall be calculated at the rate of leven per eel or at the rate applicable to the sale or purchase of such goods inside the appropriate state, whichever is higher; and for the purpose of making any such ca1cul11ltion, iuca s 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 (2a) notwithstanding anything contained in sub-sectlon (1) or sub--section (2), if under the sales tax law of the appro- 10 priate state the safe or purchase, as the case may be, of any goods by a dealer is exed)pt from tax generally or 11 subject to tax generally at a rate which is lower than one per cent (whether called a tax or fee or by any other name), the tax payable under this act on his turnover in so far as the turnover or any is part thereof relates to the sale of such goocls shall de nil or, as the case may be, shall be calculated at the lower rate e~nation-for the purposes of this buji)-eection a sale or purchase of goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate state if 20 udder that law it is exempt only in specified circumstances 01' under specified aonditioil$ or in re1atiod to which the tax t levied at specified stages or otherwise than with reference to the turnover of the goods (3), the goods referred to in clause (b) of sub-aecuon 25 (1)-(4) in the case of declared goods are goods of the clua or classes specified in the certificate of registratioll of the registered dealer purchasing the goods as being intended for re-sale by him; 30 (b) in the case of goods other than declared goods are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for re-sale by him or for use by him in the execution of any confnct or, subjeet to any rules made by 3s the central government in this behalf, for use by him in the manufacture or processing of goods for sale fir in mining or in the generation or distribution of electricity or an)' other form of power; (c) ere containers or other materials spectfted in the 40 certificate of registration of the registered dealer purehrsina  the goods, being containers or materials intended for being used for the packing of goods for sale; (d) are containers or other materials used for the packing of any goods or classes of goods speci1\ed in the 5 certificate of registretion referred t('l in clause (a) or clause (b) or for the packing of any containers or oilier materials specified in the certificate of registration referred to in clause (c) expzan4tion-for the purposes of this sub-seetion, "cont 10 ract" means any agreement for carrying out for cash or deferred payment or other valuable consideration-(i) the construction, fitting out, improvement or repair of any buildmgi road, bridge or other immovable property; or 15 (ii) the instaliation or repair of any machinet'j aftlxed to any' building or other immovablp property (4) the provisions of sub-section (1) shall not epply to any sale in the course of inter-state trade or commerce unless the dealer selling the goods furnishes to tm prescribed authority in 20 the preseribed m8ft11er-(0) a declaration duly filled and signed by thl!' registered dealer to whom the goods are sold containing the prescribed particulars iii e prescribed form obtained from the prescribed authority; or 25 (b) if the goods are sold to the government, not being a registered dealer, a certificate in the prescribed form duly filled and signed by a duly authoric;ed officer of the government' 8 por seetion 9 of the principal act, the following sections shan substituti,?d b ~ ted -of new tecucd 30 e'liuuijwtu ; namelr, -for aectiod 9 35 "9 (1) the tax payable by any dealer under this act on le1"l1  ~dd  co cetlon siiles of goods effected by him in the cc"ut'se of intcrstate trade of taludd or commetee [whether such sales fall within claula (a) or penalties olaur (b) of section 3] shall be levied and collected by the goternment of india in the manner provided in sub-8ection (3) in the state from which the movement of the goods commenced: provided that, in the case of a sale of goods during their movement from one state to another beoina a sale subsequent to the first sale in respect of the same goods, the tax sball, where such sale does not fall within sub-section (2) of section 6, be levied and collected in the stjate from which the registered dealer effecting the subsequent sale obtained the form pres-s cribed for the purposes of clause (a) of sub-section (4) of section 8 in connection with the purchase of such goods (2) the penalty imposed upon any dealer under section loa shall be collected by the government of india in the manner provided in sub-section (3)-(a) in the case of an offence falling under clause (b) 10 or clause (d) of section 10, in the state in which the person purchasing the goods obtained the form prescribed for the purposes of clause (a) of sub-section (4) of ~ction 8 in connection with the purchase of such goods; (b) in the case of an offence falling under clause (c) of is section 10, in the state in which tbe person purchasing the goods should have registered himself it the offence had not been committed (3) the authorities for the time being empowered to assess, collect end enforce payment of any tax under the general sales 20 tax law of the appropriate state shall, on behalf of the government of india and subject to any rules made under this act, assess, collect and enforce payment of any tax, including any penalty, payable by a dealer under this act in the same manner as the tax on the sale or purchase of goods under the general 2s sales tax law of the state is assessed, paid and collected; and for this purpose they may exercise all or any of the powers the'y have under the general sales tax law of the state; and the provisions of such law, including provisions relating to returns, appeals, reviews, revisions, references, penalties and crmpound- 30 ing of offences, shall apply accordingly: provided that if in any state or part thereof there ,ilno general sales tjax law in force, the central government may, by rules made in this behalf, make necessary provision fer 011 or any of the matters specified in this sub-section, and such rules 3s may provide that a breach of any rule shall be punjsheble with fine which may extend to five hundred rupees; and where the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues 40 (4) the proceeds in any financial year of any ta'1c, including any penalty, levied and collected under this ~ in any state (other than a union territory) on behalf of the government of india shall be assigned to that state and shall be retained by it; and the proceeds attributable to union territories shall fqrm part 'of the consolidated fund of india s 9a no person who is not a registered dealer shall collect in collection of respect of any sale by him of goods in the course of inter-state ~~;ob~e trade or commerce any amount by way of tax under this act, registered and no registered dealer shall make any such collection except dealers in accordance with this act and the rules made thereunder" ro 7 in section 10 of the principal act, after clause (e), the fojlow- :ren~t ing clause shall be inserted, namely: _ acctioq 10 -  (f) collects qny amount by way of tax in contravention of the provisions contained in section 9a;" 8 after section 10 of the principal act, the following section insertion of is shall be inserted, namely:-~ga section 20 "loa if any person purchasing goods is guilty of pn offence irmpositll'on  - 0 pena ty under clause (b) or clause (c) or clause (d) of section 10, the in lieu of authority who granted to him or, as the case may be, is com- prosecution petent to grant to him a certifioote of registration uncler this act may, after giving him a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty a sum not exceeding one-and-a-half times the tax which would have been levied under this· act in respect of the sale to him of the goods if the offence bed not been committed: provided that no prosecution for an offence under section 10 shall be instituted in respect of the same facts on which a penalty has been imposed under this section" 9 in section 13 of the principal act,-amendment of section 13· (i) for clause (d) of sub-section (1), shall be substituted, namely:-the following clauses 30 "(d) the form in which and the particulars to be contained in any declaration or certificate to be given under this act; 3s (e) the enumeration of goods or class of goods used in the manufacture or processing of goods for sale or in mining or in the generation or distribution of electricity or any tither form of power; (i) the matters in respect of which provision may be made under the proviso to sub-section (3) of section 9; (g) the fees payable in respect of applications· for registretion under this act"; (ii) in sub-section (4),-s (4) in clause (e), for the words "the authority from which", the words "the authority from whom, the conditions subject to which and the fees subject to payment of which" shall be substituted; ('b) in clause (g), for the words "the authorities to 10 which" and "the nature", the words "the authorities to whom" and "the name, place or nature" shall respectively be substituted amendment it in section 14 of the principal act,-cllectioo 140 (i) for item (iiel), the following items shall be substituted, is namely:-1 of 1944 "(iiel) cotton fabrics as defined in item no 12 of the first schedule to the central excises and salt act, 1944; (ub) cotton yarn, but not including cotton yarn waste;"; , (il) after item (vi), the following items shall be inserted, 20 namely:-1 of 19 "(vii) rayon or artificial silk fabrics as defined in item no 12a of the first schedule to the central excises and salt act, 1944; (viii) sugar, as defined in item no8 of the first sche- 2s f - 1 0 1944 dule to the central excises and salt act, 1944; (ix) tobacco, as defined in item no 9 of the first schedule to the central excises and salt act, 1944; 1 of 1944· (x) woollen fabrics, as defined in item no 12b of the first schedule to the central excises and salt act, 1944" 30 i of 1944· "15 every sales tax law of a state shall, in so far as it imposes or authorises the imp6sition of a tax on the sale or purchase of declared goods, be subject to the following restrictions 35 and conditions, namely:-substitution 11 for section 15 of the principal act, the following section shall or dew lee- be substituted, namely:-bon for icc-lion i, restrictions and conditlon\ in regard to taj: on aale or purchase of declared aoodl within a state (a) the tax payable under that law in respect of any sale or purchase of such goods inside the state shall not exceed two per cent of the sale or purchase price thereof, and such tax shall not be levied at more than one stage; (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 s trade or commerce, the tax so levied shall be refunded to such person in such manner and subject to such conditions as may be provided in any law in force in that state" 12 section 7 of the additioool duties of excise (goods of special ~ of 10 [mportance) act, 1957, is hereby repealed act ods87~f 19'7·  statement of objects and reasonsthe levy of tax on inter-state sales under the central sales tax act, 1956, commenced from the 1st july, 1957 experience of the working of the act has shown that it requires to be amended in certain respects the bill seeks to make the following amendments:-(i) mmmg industries, electricity undertakings, etc, as registered dealers, will be enabled to purchase in inter-state trade prescribed goods at the concessional rate of tax; (ii) the law at present provides for the taxation of all sales effected by a transfer of documents of title to the goods during a single movement from one state to another and also lays down that in respect of such sales the tax shall be collected in the states where the sales take place administrative difficulties have been experienced in fixing the place of a sale and there is also the rigour of multiple taxation of such sales of goods in a single movement it is now proposed to avoid this multiple taxation and levy the tax only once at the first point during a single movement of goods from one state to another and also to fix 'the place of sale as being in the state from which the movement of goods commenced if sales effected by a transfer of documents of title to the goods involve sales to an unregistered dealer, provision is being made whereby the state in which the place of business of the last registered dealer making the sale is situate will levy the tax; (iii) the provisions relating to registration are being amended to make it clear that dealers in exempted goods also are entitled to get themselves registered; (i1') on the unanimous suggestion of state governments, ft is being provided that all inter-state sales of goods made to government (either central or state) would be taxed at the concessional rates laid down in section 8 (1) of the act; (v) the union territories ~f himachal pradesh and tripura have no local sales tax law the amendments proposed will enable the central government, by rules, to provide a suitable machinery for the collection of central sales tax; i • , (vi) under the additional duties of excise (goods of special irrportance) act, 1957 (58 of 1957) ,-(a) cotton fabrics rayon and artificial silk fabrics and woollen fabrics, (b) sugar, and ( c) tobacco, as defined in items 12 12a, 12b, 8 and 9 ~f the first schedule to the central excises and salt act, 1944 respectively, were declared as goods of special importance in inter-state trade or commerce it is proposed to make section 14 of the act selfcontained, by including those three items also under the list of 'declared goods' defined in this act section 7 of the additional duties of excise (goods of special importance) act, 1957, will consequently be repealed; lvii) one of the conditions laid down in section 15 is that tax on declared goods shall be levied at the stage of last sale or purchase inside the state certain state governments levy tax at the first point of purchase on some of the declared goods under their respective laws, and to accommodate their views it is proposed to leave with the states the option regarding the point of levy of tax on declared goods without in any way disturbing the scope of the present restrictions imposed by parliament morarji desai new delhi; the 19th april, 1958 clause 2-sub-clause (i) omits the explanation to section 2 (a) which defines "place of business" for the purpose of determining the place of sale this is no longer necessary in view of the detailed provisions now being made in section 9 by clause 6 sub-clause (ii) enlarges the definition of "dealer" by including therein persons carrying on the business of purchasing goods in the course of inter-state trade or commerce sub-clause (iii) amends the definition of "goods" by removing "newspapers" therefrom as no state can levy a tax on the sale of newspapers sub-clause (iv) seeks to insert a new definition of "place of business" as including a warehouse, godown etc clause 3-the proposed sub-section seeks to avoid multiple taxation on sales effected by a transfer of documents of title to goods in a single movement thereof from one state to another in such cases the tax will be levied only once at the first point during such movement this benefit will, however, be confined to sales to registered dealers only clause 4-sub-clause (i) seeks to substitute for sub-section (2) a new sub-section providing for the registration of a dealer who has a place of business in a state where there is no local sales tax law the explanation to that sub-section is also being amended to make it clear that dealers in exempted goods also may get themselves registered under the act as persons liable to pay tax although exempt for the time being sub-clause (ii) seeks to substitute a new sub-section for subsection (4) of section 7, the amendments made being of a procedural character clause 5-the amendments proposed will-(a) entitle government departments to purchase goods at the concessional rate of tax; (b) ensure that in no circumstances a sale to an unregistered dealer or consumer is taxed at a rate lower than that applicable in the case of a sale to a registered dealer; (c) enable the rate of tax to be determined in cases where the state rate is prescribed not with reference to the turnover but with respect to the quantity sold, eg, petrol; (d) enable rules being made prescribing the commodities used by a manufacturer, miner, etc, in his undertaking which would be entitled to the concessional rate of tax clauge 6-section 9 as proposed to be revised provides that the state which shall levy and collect the tax shall be the one from which the goods have been moved in the course of inter-state trade or co~merce in the case of a_second or subsequent sale by a registered dealer to an unregistered dealer which will not be covered by sub-section (2) of section 6 as proposed to be amended by clause 3, tax will be levied and collected in the state where the registered dealer making the sale has his place of business power is also being taken by the central government to make rules for the purpose of providing for the assessment, collection and enforcement of payment of tax under the act in any territory where there is no local sales tax law in force the proposed new section 9a provides that tax under the act can be collected only by registered dealers clause 7-this amendment is consequential upon the insertion of new section 9a cla'u'fe a-the new section loa seeks to provide for the imposition of a penalty in respect of the offences enumerated in clauses (b), (c) and (d) of section 10 any penalty under this provision will be a bar to a prosecution on the same facts clause 9-the rule-making section (section 13) is sought to be amended suitably in consequence of the amendments proposed in the bill cla'u'~e 10-section 14 of the act is sought to be made self-contained by including within it (a) cotton fabrics, (b) rayon and artificial silk fabrics, (c) woollen fabrics, (d) sugar and (e) tobacco as defined in the first schedule to the central excises and salt act, 1944, which were declared as goods of special importance in inter-state trade or commerce by section 7 of the additional duties of excise (goods of special importance) act, 1957 clause ll-section 15 is being revised so as to leave the discretion of the state governments unfettered with respect to the levy of tax on declared goods at any stage under their local laws, the only condition sought to be imposed being that if, under the local sales tax law, a tax is collected, provision is made in the law for the refund of such tax if the goods are sold in the course of inter-state trade or commerce in such cases central sales tax alone should be leviable the state governments are left free to lay down their own procedure for the making of such refunds clause 12-this amendment is consequential on the amendment proposed in clause 10  financial memorandumthe scheme of the existing act is to utilise the machinery hi existence in the states for collecting the central sales tax this does not in,volve any expenditure from the consolidated fund of india with respect to union territories like delhi, the financial memorandum attached to the central sales tax bill has already explained tl!e financial implications in states like himachal pradesh and tripura, where there is no local sales tax law in force, a machinery may have to be devised whereby the central sales tax may be collected for this purpose a small staff may be required as there is no appreciable volume of inter-state trade from these territories, the expenditure likely to be involved on this account may not exceed rs 25,000/- per annum - clause 9 of the bill seeks to enlarge the rule-making power of the central government to provide for-(a) the form of declaration and certificates under the act and the particulars to be contained therein; (b) the goods or class of goods which are likely to be used by a manufacturer, miner, etc, in his undertaking in respect of which the concessional rate of tax should be leviable; (c) the procedure for the levy and collection of tax in territories where there is no local sales tax law; (d) the fees payable in respect of applications for registration; and (e) the fees payable for obtaining a declaration form under sub-section (4) of section 8 and the conditions subject to which such declaration forms may be obtained power has to be assumed by the central government for the purpose of specifying what goods or classes of goods are likely to be used by ·a manufacturer, miner, electricity undertakings, etc, as such specifications may have to be made from time to time states like tripura _ himachal pradesh have at present ,no sales tax law provision has, therefore, to be made enabling the central government to make rules providing for the collection and enforcement of payment of tax under the central law in these territories the rule-making power is of a normal character  annexure extracts from the central sales tax act, 1956-  (no 74 of 1956) - • - •z in this act, unless the context otherwise requires,-definitions' (a) "appropriate state" means-(i) in relation to a dealer who has one or more places of business situate in the same state, that state; (ii) in relation to a dealer who has one or more places of business situate in different states, every such state with respect to the place or places of business situate within its territory; explanation-"place of business" means-(i) in the case of a sale of goods in the course of inter-state trade or commerce falling within clause (a) of section 3, the place from which the goods have been moved by reason of such sale; (ii) in the case of any such sale falling within clause (b) of section 3, the place where the sale is effected; (b) "dealer" means any person who carries on the business of selling goods, and includes a government which carries on such business; (c) "declared goods" means goods declared under section 14 to be of special importance in inter-state trade or commerce; (d) "goods" includes all materials, articles, commodities and ell other kinds of movable property, but does not include actionable claims, stocks, shares and securities; - - - - -  chapter iii inter-state sales tax6 subject to the other provisions contained in this act, every ~~i~:~~t~: dealer shall, with effect from such date as the central government state s:·les may, by notification in the official gazette, appoint, not being earlier than thirty days from the date of such notifioation, be liable to pay tax under this act on all sales effected by him in the course of inter-state trade or commerce during any year on and from the date so notified reaiatnotiod of dcalen 7 (1) every dealer liable to pay tax under this act shall, within such time as may be prescribed for the purpose, make an application for registration under this act to such authority in the appropriate state as the central government may, by general or special order, specify, and eve:ry such application shall contain such particulars as may be prescribed (2) any dealer who is liable to pay tax under the sales tax law of the appropriate state may, notwithstanding that he is not liable to pay tax under this act, apply for registration under this act to the authority referred to in sub-section (1), and ~ery such application shall contnin such particulars as may be prescribed  - - - - - (4) a certificate of registration granted under this section may be cancelled by the authority granting it, where it is satisfied that the dealer to whom it has been granted has ceased to carry on business or bas ceased to exist or, in thp case of a dealer registered under sub-section (2), has ceased to be liable to pay tax under the sales tax law of the appropriate state or for any other sufficient reason  - - - - - rates oftax 8 (1) every dealer who, in the course of inter-state trade or com-~~=~ of merce sells to e registered dealer goods of the description referred inter-state to in sub-section (3) shall be liable to pay tax under this act, which ~~~~ com- shall be one per cent of his turnover: provided that, if under the sales tax law of the appropriate state, the sale or purchase of any goods by a dealer is exempt from tax generally and not in specified cases or in specified circumstances or is subject to tax (by whatever dbme called) at a rate or rates which is or are lower than the rate specified in sub-section (l), the tax payable under this act on the turnover in relation to the sale of such goods in the course of inter-state trade or commerce shall be nil or shall be calculated et the lower rate, as the case may be (2) the tax payable by any dealer in any case not falling within sub-section (1) in respect of the sale by him of any goods in the course of inter-state trade or commerce shall be oalculated at the same rates and in the same manner as would have been done if the sale had, in fact, taken place inside the appropriate state, and for the purpose of making any such calculation 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 (3) the goods referred to in sub-section (1)-(a) in the case of declared goods, are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for resale by him; and (b) in any other case, are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for resale by him or for use by him in the manufacture of goods for sale or for use by him in the execution of any contract; and in either case include the containers or other materials used for the packing of goods of the class or classes of goods so specified explanation-for the purposes of this sub-section "contract" means any agreement for carrying out for cash or deferred payment or other valuable consideration-(i) the construction, fitting out, improvement or repair of any building, road, bridge or other immovable property; or (ii) the installation or repair of any machinery affixed to any building or other immovable property (4) the provisions of sub-section (1) shall not apply to any sale in the course of inter-state trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declamtion duly filled and signed by the registered dealer to whom the goods are sold, containing the prescribed particulars on a prescribed form obtained from the prescribed authority - - - - - - 9 (1) the tax payable by any dealer under this act shall be ~il!~~~ of levied and collected in the appropriate state by the government tllx of india in the manner provided in sub-section (2) (2) the authorities for the time being empowered to assess, collect and enforce payment of any tax under the general sales tax law of the appropriate state shall on behalf of the government of india and subject to any rules made under this act, assess, collect and enforce payment of any tax payable by a dealer under this act in the same manner as the tax on the sale or purchase of goods under the general sales tax law of the state is assessed, paid and collected; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the statej and the provisions of such law including provisions relating to returns, appeals, reviews, revisions references, penalties and compounding of offences, shall apply accordingly (3) the proceeds (reduced by the cost of collection) in any financial year of any tax levied and collected under this act in any state on behalf of the government of india shall, except in so far as those proceeds represent proceeds attributable to union territories, be assigned to that state and shall be retained by it; and the proceeds attributable to union territories shall form part of the consolidated fund of india penaltitl 10 if any person-- - - - - -  (e) has in his possession any form prescribed for the purpose of sub-section (4) of section 8 which has not been obtained by him or by his principal or by his agent in accordance with the provisions of this act or any rules made thereunder; he shall be punishable with simple imprisonment which may extend to six months, or with fine, or with both; and when the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues  -   - power to 13 (1) the central government may, by notification in the m3ke rules officpll gazette, make rules providing for-  (a) the manner in which applicktions for registration may be made under this act the particular to be contained therein, the procedure for the grant of such registration, the circumstances in which registration may be refused and the form in which the certificate of registration may be given; (b) the period of turnover, the manner in which the turnover in relation to the sale of any goods under this act shall be determined, and the deductions which may be made in the process of such determination; (c) the cases and circumstances in which, and the conditions subject to which, any registration granted under this act may be cancelled; (d) the particulars to be contained in the declaration to be given by any registered dealer purchasing goods and the form of such declaration  - ' - - (4) in particular and without prejudice to the powers conferred by sub"section (1), the state government may make rules for all or any of the following purposes, namely:-- -  - - (e) the authority from which any form of declaration prescribej under sub-section (4) of section 8 may be obtained, the manner in which the form shall be kept in custody and records relating thereto maintained, the manner in which any such form may be used and any such declaration may be furnished; - - - - - - (g) the time within which, the manner in which and the authorities to which any change in the ownership of any business or in the nature of any business carried on by any dealer shall be furnished,     - - chapter iv  goods of special importance in inter-state trade or commercelrsold in the same form in which they aile direct-i ly produced by the ) rolling mill; 14, it is hereby declared that the following goods are of special ;;~~~i~ be importance in inter-state trade or commerce: -of special ( ') i' 1 d' k' 11 't f importan:e t coa, mc u mg co e mal s orms; in inter-(ii) cotton, that is to say, all kinds of cotton (indigenous stste trade or imported) in its unmanufactured state, whether ginned or ~e;~~­unginned, baled, pressed or otherwise, but not including cotton waste; (ua) cotton yarn, but not including cotton yarn waste; (iii) hides and skins, whether in a raw or dressed state; (iv) iron and steel, that is to say,-(a) pig iron and iron scrap; (b) iron plates sold in the same form in which they are directly produced by the rolling mill; (c) steel scrap" steel inggts steel "billets, steel bars and rods; (d) (i) steel plates, (ii) steel sheets, (iii) sheet bars and tin bars, (iv) rolled steel sections, (v) tool alloy steel; (1') jute, that is to say, the fibre extracted from plants belonging to the species core horus capsularis and eorehorus ozitorius and the fibre known as mesta or bimli extracted from plants of the species hibiscus cannapinus l!lnd hibiscus sabdariffavar  altissima, whether baled or otherwise; (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 chiefly in medicines, perfumes, cosmetics and the like 15 every sales tax law of a state shall, in so far 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:-restrictions and conditions in gard to :ax on sale or purchase of dcc1a'ed goods wihin a statc (a) the tax payable under that law in respect of any sale or purchase of such goods inside the state shall be levied only in respect of the last sale or purchase inside the state and shall not exceed two per cent of the sale or purchase price; (b) notwithstanding anything contained in clause (a), no tax shall be levied in respect of the last sale or purchase inside the state if the declared goods purchased are intended for sale in the course of inter-state trade or commerce explanatwn-the expression "last sale or purchase inside the state" means the transaction in which a dealer registered under the sales tax law of the state-(i) sells to or purchases from another such dealer declared goods for use by the purchaser in the manufacture of goods for sale or for use by the purchaser in the execution of any contract; or (ii) purchases declared goods from another such dealer for sale to a dealer not registered under the sales tax law of the state or to a consumer in the state  - - - - - -  extrct from the additional duties of excise (goods or special importance) act 1957(no 58 or 1957) - - - - - 7 it is hereby declared that the following goods namely, sugar, ~=t!:~on tobacco, cotton fabrics, rayen or artificial silk fabrics and woollen goods to be fabrics are of special importance in inter-state trade or commerce ~~ and every sales tax law of a state shall, in so far as it imposes in inter-slife or authorises the imposition of a tax on the sale or purchase of ~m~~ce the declared goods, be subject as from the 1st day of april, 1958, to the restrictions and conditions specified in section 15 of the of 6 central sales tax act, 1956 1~ 195, - - - - - a bill further to amend the central sales tax act, 1956 the president has, in pursuance of clauses (i) and ~3) ofarticle 117 and clause (i) of article 274 of the constitution of india, recommended to lok sabha, the introduction and consideration of the bill m n kaul, secretary (shri morarft desai, minister of finance) 