Section 6(1) of the CST Act provides that subject to the other provisions contained in this Act, every dealer shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, not being earlier than thirty days from the date of such notification, be liable to pay tax under this Act on all sales of goods other than electrical energy effected by him in the course of interstate trade or commerce during any year on and from the date so notified.
However, a dealer shall not be liable to pay tax under this Act on any sale of goods which, in accordance with the provisions of section 5(3), is a sale in the course of export of those goods out of the territory of India.
Analysis of Section 6(1) :
Section 6(1) is the charging Section. It reveals the following ingredients :
(a) The taxability under this Section is subject to other provisions of the Act.
(b) A sale under this Section shall be taxed only if it comes within the scope of section 3 of the Act, to be determined as Interstate Sale.
(c) An assessee, to become liable to pay tax, should be dealer within the meaning of section 2(b) of the Act.
(d) The liability to tax shall arise in respect of all goods, except electrical energy.
(e) The penultimate sales in the course of export of goods outside the territory of India are exempt from tax liability.
Section 6(1A) provides that a dealer shall be liable to pay tax under the CST Act on sale of any goods effected in the course of interstate trade or commerce notwithstanding that no tax would have been leviable under the Local Sales Tax Act of the appropriate state if such sale had taken place inside that State.
Thus, the absence of levy in intra state sales has no bearing on the levy in respect of interstate sale