Declared goods refund under the Central Sales Tax scheme prevails over State commodity classification for inter-State sales.

Declared goods that have suffered State sales tax and are later sold in inter-State trade with Central sales tax paid remain subject to the reimbursement rule in section 15(b) of the Central Sales Tax Act. The State's internal classification of the goods into different forms cannot override the statutory protection attached to declared goods under section 14, so the right to refund or reimbursement under State-prescribed procedure is preserved. On that basis, the assessee's refund claim succeeds and the State's revision fails.

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Issues: Whether refund of State sales tax paid on declared goods is allowable when the goods are subsequently sold in the course of inter-State trade and Central sales tax is paid, notwithstanding that the State law classifies the raw and dressed forms as different commodities.

Analysis: The relevant constitutional and statutory scheme confines the levy on inter-State sales to the Central Sales Tax Act and subjects State taxation of declared goods to the restrictions in section 15 of that Act. Under section 15(b), where declared goods have suffered tax under the State law and are later sold in the course of inter-State trade with Central sales tax paid, the State tax must be reimbursed in the manner prescribed by State law. The description of declared goods in section 14 of the Central Sales Tax Act prevails for this purpose, and the State's internal classification of the same goods into raw and tanned forms cannot defeat the statutory right to refund. The earlier decisions of the High Court were treated as supporting this approach.

Conclusion: The assessee was entitled to refund of the State tax paid on the declared goods, and the revision filed by the State failed.

Final Conclusion: The statutory right to reimbursement under the Central sales tax scheme overrides the State classification of the goods for levy purposes, so the assessee's claim for refund succeeds.

Ratio Decidendi: For declared goods, section 15(b) of the Central Sales Tax Act, 1956 requires reimbursement of State tax once the same goods are sold in inter-State trade and Central sales tax is paid, and the State law cannot deny refund by treating the goods as different commodities for local levy purposes.

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