Declared goods and inter-State sales: lower-rate concession under the CST Act was unavailable, and the exemption notification did not apply.

Declared goods sold in inter-State trade were liable to tax at twice the rate applicable within the State under section 8(2)(a) of the Central Sales Tax Act, because section 8(2A) did not override the specific levy for declared goods and the prescribed declarations were not furnished; the lower-rate concession was therefore unavailable. The exemption notification also could not be invoked, since it applied only where tax had already been levied and collected under the Kerala General Sales Tax Act, and that condition was not satisfied on the facts. The Tribunal's assessment orders were sustained.

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Issues: (i) Whether inter-State sales of declared goods were taxable at the lower rate under section 8(2A) of the Central Sales Tax Act, 1956, or at twice the rate applicable inside the State under section 8(2)(a); and (ii) whether the Government notification granting exemption in specified cases applied to the turnover in question.

Issue (i): Whether inter-State sales of declared goods were taxable at the lower rate under section 8(2A) of the Central Sales Tax Act, 1956, or at twice the rate applicable inside the State under section 8(2)(a).

Analysis: Section 8 of the Central Sales Tax Act, 1956 makes a distinct scheme for inter-State sales. In the case of declared goods, the levy under section 8(2)(a) is calculated at twice the rate applicable to the sale or purchase of such goods inside the appropriate State. Section 8(2A) grants a lower-rate concession only in the situations covered by that provision and, by its non obstante clause, does not override the specific rule for declared goods under section 8(2)(a). As the goods were declared goods and the sales were not supported by the prescribed declarations, the lower-rate provision did not apply.

Conclusion: The levy at twice the local rate was correct and the assessee was not entitled to the lower rate under section 8(2A).

Issue (ii): Whether the Government notification granting exemption in specified cases applied to the turnover in question.

Analysis: The notification applied only where tax had already been levied and collected under the Kerala General Sales Tax Act, 1963 in respect of the relevant goods. On the facts found, no such levy under the State Act had been made in the present case. The conditions for invoking the notification were therefore not satisfied.

Conclusion: The notification was inapplicable.

Final Conclusion: The revision petitions failed on both grounds, and the assessment orders sustained by the Tribunal were left undisturbed.

Ratio Decidendi: Section 8(2A) of the Central Sales Tax Act, 1956 does not displace the specific levy under section 8(2)(a) for declared goods, and an exemption notification confined to cases where State tax has been levied and collected cannot be invoked unless its statutory conditions are met.

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