Delegated tax rules cannot add extra conditions for Form C relief beyond the Central Sales Tax Act.

A delegated tax rule cannot impose a narrower Form C certification requirement than the Central Sales Tax Act permits. Section 8(4) requires the prescribed declaration from the prescribed authority, and the statute does not confine that authority to the State where delivery is taken. By adding an extra territorial condition, rule 12(11) of the Orissa CST Rules was inconsistent with the parent Act and beyond the rule-making power under section 13(3). The impugned sub-rule was held ultra vires and unenforceable, and the writ challenge succeeded.

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Issues: Whether sub-rule (11) of rule 12 of the Central Sales Tax (Orissa) Rules, requiring a declaration in Form C issued only by the notified authority of the State where the goods are taken delivery of, was ultra vires section 8(4) of the Central Sales Tax Act, 1956 and the rule-making power under section 13(3) of that Act.

Analysis: Section 8(4) of the Act requires the selling dealer to furnish a declaration in the prescribed form obtained from the prescribed authority. The statutory scheme does not confine the declaration to the authority of the State where delivery is taken. By insisting on an additional and narrower requirement, the impugned sub-rule imposed a condition not found in the Act and made the availability of the concessional rate depend on a restriction inconsistent with the parent enactment. A rule framed under section 13(3) can operate only so long as it remains consistent with the Act.

Conclusion: The impugned sub-rule was held to be ultra vires and unenforceable, and the challenge succeeded.

Final Conclusion: The writ application was allowed and the State was restrained from acting on the impugned rule.

Ratio Decidendi: A delegated rule cannot add conditions for statutory tax relief that are not contained in the parent Act, and any such inconsistent rule is ultra vires.

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