Declared goods classification limits State taxation of petroleum coke and supports refund where the same goods are later taxed inter-State.

Petroleum coke in raw and calcined forms was treated as the same declared goods within item (i-a) of section 14 of the Central Sales Tax Act, 1956, because coke in all its forms falls within the declared-goods scheme. The State could not split those forms into separate taxable commodities under the Assam Act so as to levy tax at more than one stage; its classification had to yield to the Central Act, and calcined petroleum coke could be taxed only if raw petroleum coke had not already borne tax. Where State tax had been paid on raw petroleum coke and Central sales tax was later paid on inter-State sale of the same declared goods, refund under section 15(b) followed.

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Issues: (i) Whether petroleum coke, in its raw and calcined forms, falls within the declared goods covered by item (i-a) of section 14 of the Central Sales Tax Act, 1956, and whether the State could treat them as two distinct taxable commodities under section 3 of the Assam Act. (ii) Whether tax collected under the State law on raw petroleum coke was refundable when the same declared goods were subsequently subjected to inter-State sale tax under the Central Sales Tax Act, 1956.

Issue (i): Whether petroleum coke, in its raw and calcined forms, falls within the declared goods covered by item (i-a) of section 14 of the Central Sales Tax Act, 1956, and whether the State could treat them as two distinct taxable commodities under section 3 of the Assam Act.

Analysis: Article 286(3) permits Parliament to impose restrictions on State taxation of goods declared to be of special importance in inter-State trade or commerce. Section 14 of the Central Sales Tax Act, 1956 declares goods including coal, and specifically coke in all its forms, as declared goods. On that construction, raw petroleum coke and calcined petroleum coke are forms of coke and are to be treated as one and the same for the purpose of section 14, notwithstanding their physical differences. Once so treated, the State classification cannot override the Central Act, and taxation of both forms at different stages within the State would offend the restriction that declared goods not be taxed at more than one stage.

Conclusion: The State classification could not prevail over the Central Sales Tax Act, 1956, and the provision had to be read down so that calcined petroleum coke was taxable only if it had not already suffered tax as raw petroleum coke.

Issue (ii): Whether tax collected under the State law on raw petroleum coke was refundable when the same declared goods were subsequently subjected to inter-State sale tax under the Central Sales Tax Act, 1956.

Analysis: Section 15(b) of the Central Sales Tax Act, 1956 entitles a dealer to refund of State tax when the same declared goods are subsequently sold in the course of inter-State trade and Central tax is paid on that transaction. Since raw petroleum coke and calcined petroleum coke are the same declared goods for the purpose of section 14, the State could not deny refund by treating them as separate commodities. The refund entitlement therefore followed from the statutory scheme and the constitutional restriction on State taxation of declared goods.

Conclusion: The petitioners were entitled to refund of the State tax paid on raw petroleum coke where Central sales tax had been paid on the inter-State sale of the same declared goods.

Final Conclusion: The State levy was upheld only to the limited extent consistent with the Central Sales Tax Act, and the refusal to refund tax on raw petroleum coke was quashed, with consequential adjustment and refund directions in favour of the petitioners.

Ratio Decidendi: Goods declared under section 14 of the Central Sales Tax Act, 1956 cannot be split by a State into distinct taxable commodities in a manner that permits taxation at more than one stage, and refund under section 15(b) follows where the same declared goods are subsequently taxed in inter-State trade.

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