Valid CST notification fixes the tax rate and prevents assessment above one per cent under section 8(5).

A valid State Government notification issued under section 8(5) of the Central Sales Tax Act, 1956 governs the applicable central sales tax rate, and the assessed tax cannot exceed the rate fixed by that notification. The Court treated the notification as sufficient authority for applying the notified rate and held that liability could not be raised above one per cent. The question under section 8(2A) was not decided in this appeal and was left open for consideration in other pending matters.

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Issues: Whether the respondents were liable to pay central sales tax at a rate exceeding one per cent in view of the State Government notification issued under section 8(5) of the Central Sales Tax Act, 1956.

Analysis: The notification issued under section 8(5) and section 8 of the Central Sales Tax Act, 1956 were treated as clear and sufficient to support the rate applied by the High Court. The question relating to section 8(2A) was not decided in this appeal, as it was left for consideration in other pending matters.

Conclusion: The tax liability could not exceed one per cent under the notification, and the appeal was without merit.

Ratio Decidendi: Where a valid notification under section 8(5) governs the rate of tax, the assessed tax cannot exceed the rate fixed by that notification.

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