Declared goods without Form C: inter-State tax is doubled on the local rate, not reduced by State rebate adjustments.

For inter-State sales of declared goods without Form C declarations, section 8(2)(a) of the Central Sales Tax Act, 1956 requires tax to be computed at twice the local rate applicable to the goods inside the appropriate State. A State-law rebate or concession that merely reduces the tax leviable on rice by reference to tax already paid on paddy does not alter that local rate for this purpose. The expression "calculated at twice the rate" refers to the statutory local rate itself, not to any net amount after applying the State rebate. Accordingly, the computation is based on the unreduced local rate before doubling.

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Issues: Whether, for inter-State sales of declared goods not covered by Form C declarations, tax under section 8(2)(a) of the Central Sales Tax Act, 1956 is to be computed at twice the local rate of tax on the goods inside the appropriate State, or by first applying the local rebate/concession applicable under the State sales tax law and then doubling the resulting net amount.

Analysis: Section 8(2)(a) of the Central Sales Tax Act, 1956 mandates that, where the concessional rate under section 8(1) is unavailable for want of Form C, tax on declared goods is to be calculated at twice the rate applicable to the sale or purchase of such goods inside the appropriate State. Paddy and rice being declared goods, the State law and the Central Act had to be read consistently, but Explanation III to entries 21 and 22 of the Third Schedule to the Andhra Pradesh General Sales Tax Act only provides a reduction in the tax leviable on rice to the extent tax had already been levied on the paddy from which it was procured. That provision does not alter the local rate of tax itself. The statutory expression "calculated at twice the rate" refers to the local rate, not to the net amount after deducting the paddy tax rebate.

Conclusion: The turnover in question was rightly subjected to tax at 8 per cent, being twice the local rate of 4 per cent applicable to rice inside the State, and the computation adopted by the Revenue was upheld.

Ratio Decidendi: For declared goods sold in the course of inter-State trade without Form C declarations, section 8(2)(a) of the Central Sales Tax Act, 1956 requires tax to be computed at twice the local rate applicable inside the State, and any State-law concession reducing tax on rice by reference to tax already paid on paddy does not reduce that rate for the purpose of section 8(2)(a).

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