In the principle Act, after section 3 so substituted, the following shall be inserted as new section and marginal heading, namely:- 3A(I) The tax leviable under section 3 shall be levied at the first point of sale within the State, at the rate or rates specified in the Schedule-Il Charge of tax and rates
(2) Notwithstanding anything contained in sub-section (i) of section 3 when an Oil Company, as may be specified in the rules, sells any petroleum product other than Crude Oil specified in the Schedule-I1 to another Oil Company for the purpose of re-sale by the latter, such inter-se-sale between the oil companies shall not be deemed to be the first point of sale in the State for the purpose of levy of tax under this Act subject to such conditions as may be prescribed. The purchasing oil company shall pay tax on the sale of such goods under thisAct or the Central SalesTaxAct, 1956 (Central Act 74 of 1956), as the case may be.
If, in any case, after purchase of such goods for resale within the State, - the purchasing Oil Company despatches any portion of the goods to a place outside the State except as adirect result of sale or purchase in the course of inter-state trade or commerce, then notwithstanding anything contained in this Act, for than portion of goods the purchasing Oil Company shall be liable to pay tax on such portion of goods at the rate a s may be applicable under the schedule I1 on the gross turnover ofpurchases of such goods.
(3) The State Government may by notification in the Official Gazette add to or omit any entry or entries in Schedule-II or modify or vary the rate or rates of tax specified therein and thereupon the said entry or entries in the rate or rates shall be deemed to have been amended accordingly:
Provided that the Government shall not fix the rate of tax, in any case, exceeding thuty paise in arupee.
3B. Incidence of surcharge on tau,-
(1) Every dealer liable to pay tax under section 3 shall pay asurcharge at the rate of five percentum of the total amount to tax payable by him under section 3A (1) or at the rate as may be notified by the government fiom time to time.
(2) Validation of levy and collection of surcharge,- Notwithstanding anything contained in this Act, any surcharge levied and collected or purported to have been levied and collected a surcharge by notification by the State Government under the Pd proviso to sub-section
(4) of section 3 or the rules framed thereunder shall be deemed to have been levied and collected under the provisions of the principle Act as amended by thisAct and be deemed to bevalidly levied and collected and accordingly-
(a) All acts, proceedings or things done or taken by the State Government or by any oficer of the State Government or any other authority in connection - - with the levy and collection of such surcharge shall be deemed to be and to have always been done or taken in accordance with law; and
(b) No suit or other proceeding shall be maintained or continued in any court against the State Government or any person or authority whatsoever for the refund of the surcharge so levied and collected.