|THE CENTRAL SALES TAX ACT, 1956.
This is a Central Act governing such areas of sales of taxable
commodities, which take place in the course of inter-state trade or
commerce. The basic purpose of this Central Legislation is to ensure
uniformity of Legislation and avoid claims and counter-claims by States
for authority to tax commodities under such trade. An assessee incurs
liability under this Act only when the goods actually move from one
State to another in the course of trade or commerce. In no case tax
levied under this Act shall exceed the ceiling fixed for this purpose,
to avoid cascading of tax. Where the inter-state sales tax is charged
on declared goods, the local tax charged and realised on the same goods
(in the event of inter-state sale made on goods locally purchased)
under the local Sales Tax Act shall have to be refunded to the dealers.