Section 6(2) exemption for subsequent inter-State sales requires E-form certificate, not Form C declaration.

A subsequent inter-State sale effected by transfer of documents of title during movement of goods is exempt under section 6(2) of the Central Sales Tax Act when the dealer furnishes the prescribed certificate in Form E-I or Form E-II from the seller from whom the goods were purchased. Form C is confined to the reduced-rate scheme for specified sales to registered dealers under section 8 and rule 12(1), and is not a condition for exemption under section 6(2). The statutory requirement for the exemption is satisfied by production of the prescribed E-form certificate.

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Issues: Whether exemption under section 6(2) of the Central Sales Tax Act, 1956, in respect of a subsequent inter-State sale effected by transfer of documents of title during movement of goods, is denied for want of a declaration in Form C from the purchaser, when the dealer furnishes the certificate prescribed for section 6(2).

Analysis: Section 6 is the charging provision for inter-State sales, while section 8 deals with a different scheme of taxation at a reduced rate for specified sales to registered dealers. Section 6(2), notwithstanding section 6(1), grants complete exemption to a subsequent sale to a registered dealer during movement of the goods, subject only to the proviso that the dealer effecting the sale furnishes the prescribed certificate from the registered dealer from whom the goods were purchased. The prescribed certificate for this purpose is Form E-I or Form E-II under rule 12(2) of the Central Sales Tax (Registration and Turnover) Rules, 1967. Form C is relevant to the limited exemption regime under section 8 and rule 12(1), and has no place in a claim under section 6(2). The argument that Form C was necessary to show that the goods fell within section 8(3) was not entertained, as that question was outside the reference and had not been in dispute before the authorities.

Conclusion: The requirement of Form C does not apply to a claim for exemption under section 6(2); production of the Form E-I certificate satisfies the statutory condition, and the assessee is entitled to exemption.

Ratio Decidendi: For exemption of a subsequent inter-State sale under section 6(2), the only prescribed documentary requirement is the certificate in Form E-I or Form E-II from the seller from whom the goods were purchased, and a Form C declaration from the purchaser is not required.

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