Declared goods protection bars multiple sales tax levies on iron scrap after tax was already paid at purchase.

Declared goods such as iron scrap could not bear sales tax at more than one stage under section 15(a) of the Central Sales Tax Act, 1956. Because tax had already been paid on the purchase of the iron scrap, the later levy on its sale within the State was inconsistent with the statutory restriction on multiple taxation of declared goods. The Tribunal's contrary view was therefore legally incorrect, and the assessee's sale of iron scrap was not liable to further sales tax.

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Issues: Whether sales tax was leviable on the subsequent sale of iron scrap, being declared goods, where sales tax had already been paid at the stage of purchase.

Analysis: The goods purchased by the assessee were found to include iron scrap. Iron scrap was declared goods under section 14 of the Central Sales Tax Act, 1956. Section 15(a) of that Act restricted the State's power to levy sales tax on declared goods so that such tax could not be levied at more than one stage. Since tax had already been paid when the iron scrap was purchased, the later levy on its sale was contrary to that restriction.

Conclusion: Sales tax was not leviable on the assessee's sale of iron scrap, and the Tribunal's order was not legally correct.

Ratio Decidendi: Where goods are declared goods and tax has already been levied at one stage, section 15(a) of the Central Sales Tax Act, 1956 bars a further levy of sales tax on a subsequent sale of the same goods within the State.

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