Concessional CST rate available to an unregistered seller where sales are to a registered dealer with C forms.

An unregistered selling dealer under the Central Sales Tax Act may still claim the concessional rate under section 8 where the inter-State sales are made to a registered purchasing dealer and the prescribed C forms are furnished. The registration requirement is dealt with separately under section 7, while the consequences of non-registration fall under the penalty and collection provisions; non-registration of the seller does not by itself change the tax rate otherwise available under section 8. The concessional rate is attached to the transaction satisfying the statutory conditions, so it cannot be denied merely because the selling dealer is unregistered. The answer is therefore in the affirmative and in favour of the assessee.

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Issues: Whether an unregistered selling dealer under the Central Sales Tax Act could claim the concessional rate under section 8 when the inter-State sales were made to a registered purchasing dealer and the prescribed 'C' forms were furnished.

Analysis: The scheme of section 8 provides concessional tax only where inter-State sales are made to a registered dealer, the goods are of the kind covered by section 8(3), and the prescribed declaration in form 'C' is furnished. The requirement of registration is separately dealt with under section 7, while sections 9-A, 10, and 10-A deal with collection of tax and the consequences of non-registration. On that scheme, failure of the selling dealer to get himself registered attracts procedural consequences and penalties, but it does not alter the rate of tax prescribed by section 8. The concessional rate is intended for the benefit of the transaction with the registered purchasing dealer, and cannot be denied merely because the selling dealer is unregistered, so long as the statutory conditions for section 8 are otherwise satisfied.

Conclusion: An unregistered dealer is entitled to the concessional rate under section 8 if the sales are made to a registered dealer and the requisite 'C' forms are furnished; the answer is in the affirmative and in favour of the assessee.

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