Declared goods taxation valid where the statute reveals a single taxable stage and bars multiple levy on the same goods.

State sales tax on declared goods is valid if the statutory scheme, read as a whole, makes a single taxable stage ascertainable and prevents multiple taxation of the same goods. The M.P. General Sales Tax Act, as amended, was construed with section 6 and the Second Schedule to show that tax on oil-seeds arose when a registered dealer sold to a consumer or an unregistered dealer, with later sales excluded. The absence of an express statement of the levy stage did not invalidate the tax, because the Act itself disclosed a single point of taxation. The levy was therefore held consistent with section 15 of the Central Sales Tax Act and article 286(3) of the Constitution.

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Issues: Whether the levy of sales tax on oil-seeds under the M.P. General Sales Tax Act, 1958 was invalid for not specifying the point or stage of levy, and whether it offended the restrictions in section 15 of the Central Sales Tax Act and article 286(3) of the Constitution of India.

Analysis: Declared goods can be subjected to State sales tax only within the limits fixed by article 286(3) and section 15 of the Central Sales Tax Act, namely, at not more than 2 per cent and at a single stage. The relevant provisions of the State Act, as amended, were examined to see whether the point of levy could be ascertained from the statutory scheme. Section 2(r) of the State Act, read with section 6 and the Second Schedule, showed that tax on declared goods became exigible when a registered dealer sold the goods to a consumer or to an unregistered dealer, and that subsequent taxation of the same goods was excluded. The contention that the Act was invalid merely because the stage of levy was not expressly stated in so many words was rejected, since the scheme of the Act itself disclosed a single taxable point.

Conclusion: The levy was held to be valid and not violative of section 15 of the Central Sales Tax Act.

Final Conclusion: The petition challenging the assessment failed, and the assessee obtained no relief on the merits.

Ratio Decidendi: A State sales tax on declared goods satisfies section 15 of the Central Sales Tax Act if the statutory scheme, read as a whole, makes the single taxable stage ascertainable and prevents taxation of the same goods at more than one stage.

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