Adjudication under CST

Adjudication of CST is done by State Vat (sales tax) Authority. Appeal against the order can be filed as per provisions of State Vat Act, except when dispute is under section 6A of CST Act.

Appeal when disputes relates to stock transfer

In case of dispute u/s 6A of CST Act (whether a particular transaction is inter state sale or stock transfer), first appeal has to be filed with Highest Appellate Authority in the State (irrespective of any provision in State Vat Act]. Appeal against order of Highest Appellate Authority in the State (excluding High Court) can be filed with CST Appellate Authority, if the order is made u/s 6A of CST Act.

CST Appellate Authority

Authority for Advance Ruling (AAR) under Income Tax has been constituted as CST Appellate Authority w.e.f. 17-3-2005. Order of Appellate Authority will be binding on State Governments.

Time limit for filing appeal

Appeal to CST Appellate Authority should be filed within 90 days from date of receipt of order. Delay upto 60 days is condonable.

Offenses under CST Act

CST Act makes provisions for punishments for certain offenses. Offenses under CST Act are cognizable and bailable.

Compounding of offenses

In some cases, compounding is permissible. This is termed as ‘penalty in lieu of prosecution’.

Liquidator of company to inform sales tax authority

If a company is under liquidation, liquidator of such company should inform sales tax authorities within 30 days.

Liability of tax of directors when company is under liquidation

Directors of private limited company in liquidation are liable for payment of CST liability.