DATE
6TH JUNE, 1994.
SUBJECT:
- OPERATIVE
VALUE OF SALES TAX ACT, 1951.
There is a
mix-conception in the minds of general public and even amongst certain sales tax
officers that Sales Tax Act, 1951 and the Sales Tax act, 1990 both hold the
field. The correct legal position is, therefore, reiterated for the information
of all concerned.
2.
Chapters I to XVI of the Sales Tax Act, 1951 (III of 1951) were
substituted by the Third Schedule to the Finance Act, 1990. This Third Schedule
was known as Sales Tax (Amendment) Act, 1990. [A copy of relevant portion of the
Finance Act, 1990 is enclosed for ready reference. The word (Amendment) was
later on omitted vide Finance Act, 1991]
3.
It is, therefore, clear from the above that Sales Tax Act, 1951, by
virtue of its substitution by the Sales Tax Act, 1990, has no operative value
except to the extent as provided in Clause 2 of the under reference amendment,
which is annexed to this Circular.
4.
This may please be noted by all concerned.