State power to reduce inter-State sales tax under Section 8(2) remained intact until the notification was expressly rescinded.

An amendment to Section 8(5) of the Central Sales Tax Act did not take away the State Government's power to continue or issue notifications granting a reduced rate for inter-State sales covered by Section 8(2). The 4% State notification remained effective until expressly rescinded, and prior notifications were not rendered redundant by the 2002 amendment. The amendment was read as addressing the concessional regime under Section 8(1) and the conditions in Section 8(4), not as extinguishing the rate-reducing power for Section 8(2) transactions. The assessees were therefore entitled to the benefit of the notification while it remained in force.

---

---

Issues: Whether the amendment to Section 8(5) of the Central Sales Tax Act, 1956 curtailed the State Government's power to continue or issue notifications granting reduced tax rate for inter-State sales falling under Section 8(2), and whether earlier notifications continued until expressly rescinded.

Analysis: The State notification granting a 4% rate for inter-State sales was held to operate on the statute book until expressly rescinded. The amendment introduced in 2002 was read as controlling notifications relating to the concessional regime under Section 8(1) and the conditions in Section 8(4), but not as rendering Section 8(2) redundant or taking away the power to reduce the rate for transactions governed by Section 8(2). Prior notifications were held unaffected by the amendment, and notifications continue to hold field until rescinded.

Conclusion: The amendment did not curtail the State Government's power in relation to Section 8(2), and the assessees were entitled to the benefit of the notification while it remained in force.

Final Conclusion: The question of law was answered for the assessees, and the impugned tribunal order stood modified accordingly, resulting in disposal of the connected appeals and writ petitions.

Ratio Decidendi: An amendment to the power-conferring provision governing concessional sales does not abrogate prior notifications or the State's power to reduce tax on inter-State transactions covered by the non-C-form rate provision unless the notification is expressly rescinded.

---