Declared goods taxation: oil-seeds already taxed at purchase could not be taxed again at sale despite a State notification.

Oil-seeds, being declared goods under section 14 of the Central Sales Tax Act, were subject to the restriction in section 15(a) that State tax cannot exceed the prescribed rate and cannot be levied at more than one stage. Because the goods had already suffered purchase tax, a further levy at the point of sale to the consumer was held to offend that statutory prohibition. A State notification under section 3-AA could not override the section 15(a) mandate. The earlier revenue authority relied on a cotton yarn precedent, but it was distinguished because that commodity was not then declared goods when the relevant levy operated.

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Issues: Whether oil-seeds, being declared goods that had already suffered purchase tax, could again be subjected to tax at the point of sale to the consumer notwithstanding the State notification issued under section 3-AA of the Act.

Analysis: Oil-seeds fall within section 14 of the Central Sales Tax Act as declared goods, and section 15(a) imposes a restriction that tax on declared goods under State law shall not exceed the prescribed rate and shall not be levied at more than one stage. Since the goods in question had already suffered purchase tax, a second levy at the stage of sale would offend that statutory restriction. A State provision or notification could not override the mandate of section 15(a). The earlier decision relied upon by the revenue was distinguished on the ground that cotton yarn there was not then a declared commodity when the relevant levy operated.

Conclusion: The oil-seeds could not be taxed again at the sale stage after having already suffered purchase tax. The revision was therefore liable to fail and the assessee succeeded.

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