Concessional CST rate applies despite form D being filed for Government sales, with no substantial question of law arising.

A State Government notification reducing CST on inter-State sales of paper was applied to the assessee, and the benefit could not be denied merely because form D was produced instead of form C for sales to Government departments. The Tribunal treated the sales as inter-State sales, noted that the concessional rate had been consciously notified, and held that no declaration form C was required to claim the reduced rate. On that basis, the assessee was entitled to the notified concessional tax rate, and no substantial question of law arose.

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Issues: Whether the assessee was entitled to the reduced rate of CST notified by the State Government despite production of form D instead of form C, and whether any substantial question of law arose for consideration.

Analysis: The dispute concerned the effect of the State Government's notification reducing CST on inter-State sales of paper. The Tribunal had held that the assessee's sales remained inter-State sales, the Government had consciously reduced the rate, and the benefit could not be denied merely because the assessee produced form D in respect of sales to Government departments rather than form C. The Court accepted that, at the relevant time, the applicable rate was one per cent and that there was no requirement to produce declaration form C for availing the reduced rate. In that view, the assessee could not be denied the benefit of the notified concessional rate.

Conclusion: The assessee was entitled to the reduced rate of tax, and no substantial question of law arose.

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