Gentlemen/Sir/Madam,

In pursuance to the Financial proposals of the Union Government for the financial year 2004-2005 announced by the Hon’ble Union Finance Minister, in his budget speech, certain amendments to the Central Sales Tax Act, 1956 (Act No. 74 of 1956) have been carried out. The finance bill has been passed by the parliament and assented to by the President of India on 10th September, 2004.

2. The salient features of the amendment are explained below:

   Chapter-VI of the C.S.T. Act, 1956 comprising section 19 to section 26, dealing with Authority to settle dispute in course of inter state trade or commerce is amended.

   1. In sub-section (1) of section 19, which deals with Central Sales Tax Appellate Authority for the words, figures and letter "Section 6A or section 9", the words, figures and letter "section 6A read with section 9" are substituted.

   2. In sub-section (1) of section 20, which deals with Appeals, for the words, figures and letter "Section 6A or section 9", the words, figures and letter "section 6A read with section 9" are substituted.

   3. In sub-section (3) of section 21, which deals with procedure on receipt of application, in the first proviso, for the words, "also to the State Government", the words "also to each State Government" are substituted.

   4. In sub-section (22) which deals with Powers of the Authority, after sub-section (1), sub-section (1A) is inserted. By this amendment the Appellate Authority shall have the powers of —

      1. granting stay of the operation of the order of the Assessing Authority against which the appeal is filed.

      2. Order the pre-deposition of tax before entertaining the appeal and granting the stay. The Authority while making the order for pre-deposition of tax has to consider any deposition of tax made by assessee under Central Sales Tax Law of the concerned State Government.

   5. In section 25 which deals with transfer of pending proceedings, for the words, "every appeal" the words " any proceedings" are substituted.

   6. In section 26 which deals with applicability of order passed, for the words, "the assessing authorities" the words, "each State Government concerned, the assessing authorities" shall be substituted.

   The above amendments (i) (ii) (iii) (v) and (vi) are clarificatory in nature.

   The amendments come into force w.e.f. 11th September, 2001. 

3. This circular cannot be made use for legal interpretation of provisions of law, as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.
   

4. You are requested to bring the contents of this circular to the notice of all the members of your association.