Mandatory CST forms are essential for subsequent inter-State sale exemption; omission defeats the exemption claim.

Exemption for a subsequent inter-State sale under the Central Sales Tax regime is available only on strict compliance with the prescribed documentary conditions. Read with the Andhra Pradesh CST Rules, the dealer must furnish the original Form E-1 from the first seller and, as applicable, Form C or Form D from the purchasing dealer or Government authority. The omission of any required form is treated as non-compliance with a mandatory condition and disentitles the dealer to the exemption. On that basis, the exemption claim was rejected and the levy on the disputed turnover was upheld.

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Issues: Whether exemption under section 6(2) of the Central Sales Tax Act could be claimed without furnishing the prescribed forms, and whether the requirement of Form E-1 and Form C or Form D was mandatory.

Analysis: Section 6(2) of the Central Sales Tax Act grants exemption to a subsequent inter-State sale only subject to the prescribed conditions. Read with rule 12(3) of the Central Sales Tax (Andhra Pradesh) Rules, 1957, the dealer claiming exemption must furnish the original Form E-1 received from the first seller and, as the case may be, Form C or Form D received from the purchasing dealer or Government authority. The Court held that these procedural requirements are mandatory and that omission of any one of the required forms disentitles the dealer to the exemption. The contrary view of another High Court was not accepted.

Conclusion: The assessee was not entitled to claim exemption without complying with the mandatory form requirements, and the revision petition failed.

Final Conclusion: The assessment revision was dismissed, affirming the withdrawal of exemption and the levy on the disputed turnover.

Ratio Decidendi: Exemption under section 6(2) of the Central Sales Tax Act is available only on strict compliance with the prescribed documentary conditions, including the furnishing of the required statutory forms.

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