Declared goods tax protection fails where prescribed declaration form is not furnished for tax-free purchase under State sales tax law.

Declared goods purchased from a registered dealer remain subject to State sales tax where the assessee does not comply with the statutory mechanism for tax-free purchase by furnishing the prescribed declaration form. The article notes that iron and steel goods, including black corrugated sheets, were reassessed under the M.P. General Sales Tax Act after deduction had been wrongly allowed. As the assessee had not submitted form XII, the statutory facility for purchase without tax was not availed, and the protection under section 15 of the Central Sales Tax Act did not bar levy under the State law. The assessee was therefore liable to pay sales tax on the purchases.

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Issues: Whether iron sheets declared as goods under the Central Sales Tax Act could be taxed again under the State sales tax law when purchased from a registered dealer after payment of tax, without furnishing the prescribed declaration form.

Analysis: The reference arose from reassessment under the M.P. General Sales Tax Act, 1958 after it was found that deduction had been wrongly allowed on sales of black corrugated sheets falling within iron and steel. The assessee had not furnished declarations in form XII, though such declarations would have enabled purchase without tax. In identical circumstances, it had already been held that where the assessee fails to avail the statutory facility by furnishing the prescribed declaration and instead pays tax as part of the purchase price, the subsequent sales remain taxable under the State Act and are not barred by section 15 of the Central Sales Tax Act. The Court adopted that view.

Conclusion: The assessee was liable to pay sales tax on the declared goods purchased from a registered dealer after payment of tax, since no declaration in the prescribed form had been furnished.

Ratio Decidendi: The protection against taxation of declared goods does not exempt an assessee from State sales tax where the statutory mechanism for tax-free purchase is not complied with by furnishing the prescribed declaration form.

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