Refund of State sales tax on declared goods sold inter-State was upheld where Central sales tax had already been paid.

Declared goods sold in the course of inter-State trade attracted refund of State sales tax where Central sales tax had been paid on those transactions. The statutory scheme under the Central Sales Tax Act, the Tamil Nadu General Sales Tax Act and the relevant rules required the refund to be made to the dealer effecting the inter-State sale. The later amendment to section 15(b) was treated as confirming that construction, so the refund claim was upheld.

---

---

Issues: Whether the appellant was entitled to refund of sales tax levied under the State Act on declared goods sold in the course of inter-State trade, having paid Central sales tax on those sales.

Analysis: Section 15(b) of the Central Sales Tax Act, 1956, the proviso to section 4 of the Tamil Nadu General Sales Tax Act, 1959, and rule 23 of the Madras General Sales Tax Rules, 1959, together required refund of the State tax where declared goods were subsequently sold in inter-State trade and Central sales tax had been paid. The word "refunded" had to be read in context, and the statutory scheme showed that repayment was to be made to the dealer making the inter-State sale. The later amendment to section 15(b) of the Central Sales Tax Act, 1956, was treated as clarificatory support for that construction.

Conclusion: The appellant was entitled to receive the refund of the State tax in respect of the inter-State sales, provided Central sales tax had been paid on those transactions.

---