Form C usage may be restricted transaction-wise where state rules regulate furnishing without altering central prescribed particulars.

Rule 7(2A) of the Central Sales Tax (Punjab) Rules, 1957 was upheld as a valid procedural regulation governing the use and furnishing of Form C. The Punjab HC held that the Central Sales Tax Act, 1956 operates transaction-wise and that section 13(4)(e) permits State rules, not inconsistent with the Act or Central rules, on how prescribed declaration forms are obtained, kept, used and furnished. Because the rule did not alter the particulars of Form C prescribed by the Central rules and only limited one declaration to one sale transaction, it was not ultra vires or repugnant to the central framework.

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Issues: Whether rule 7(2A) of the Central Sales Tax (Punjab) Rules, 1957, which restricts a single declaration in Form C to one sale transaction except where the total sales do not exceed Rs. 5,000, was ultra vires the Central Sales Tax Act, 1956, or inconsistent with the Central Sales Tax (Registration and Turnover) Rules, 1957.

Analysis: The charging and concessional rate provisions under the Central Sales Tax Act, 1956, operate transaction-wise, and section 8(4) requires the selling dealer to furnish the prescribed declaration in the prescribed manner. While section 13(1)(d) empowers the Central Government to prescribe the form and particulars of declarations, section 13(3) and section 13(4)(e) separately empower the State Government to make rules, not inconsistent with the Act and the Central rules, regarding the manner in which prescribed declaration forms are obtained, kept, used, and furnished. The impugned rule did not alter the particulars of Form C prescribed by the Central Government under rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957; it regulated only the manner of using and furnishing the form. As no direct repugnancy or conflict existed, the rules were capable of co-existing and had to be construed harmoniously so as to effectuate the statutory scheme of assessment and collection of inter-State sales tax.

Conclusion: Rule 7(2A) was within the competence of the State Government and was not ultra vires or inconsistent with the Central Act or the Central rules.

Ratio Decidendi: A State Government may, under section 13(4)(e) of the Central Sales Tax Act, 1956, validly regulate the manner of use and furnishing of Form C, including limiting one declaration to one transaction, so long as the rule does not conflict with the Act or alter the prescribed particulars of the declaration.

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