Double taxation on declared goods barred where tax was already levied under an earlier sales tax law and the prior assessment stood uncorrected.

Section 9(4) of the Gujarat Sales Tax Act, 1969 bars a second levy on declared goods where tax has already been levied or was leviable on the same goods under the Act or an earlier sales tax law. The text notes that the vendor's earlier assessment had treated the sale as a local sale, tax had been collected and paid, and that assessment had not been corrected within limitation. On that basis, the assessee's subsequent sales of the same declared goods were protected from further taxation, and the reference was answered in favour of the assessee.

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Issues: Whether tax could be levied at a subsequent stage on declared goods when tax had already been levied under the earlier sales tax law on the same goods, and whether the prior assessment treating the earlier sale as a local sale bound the department in the assessee's assessment.

Analysis: Section 9(4) of the Gujarat Sales Tax Act, 1969, bars further tax on declared goods at a subsequent stage where tax has already been levied or is leviable on sale or purchase of those goods under the Act or any earlier law. The earlier assessment of the vendor had been made by a competent authority on the basis that the sale of the same declared goods was a local sale, tax had in fact been collected and paid, and the department had not corrected that assessment within limitation. In those circumstances, the assessee's subsequent sales of the same goods could not again be subjected to tax.

Conclusion: The assessee was entitled to the protection of section 9(4), and no further tax could be levied on its subsequent sales of the declared goods.

Final Conclusion: The reference was answered against the State and in favour of the assessee, with costs awarded to the assessee.

Ratio Decidendi: Where tax has already been levied on declared goods at one stage under an earlier law, section 9(4) prevents a second levy at a subsequent stage on the same goods.

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