Inter-State sales concession under the CST Act applies only after the required notification, not merely on Form C compliance.

Under Section 8(1) of the Central Sales Tax Act, the concessional inter-State rate depends on a Central Government notification in the Official Gazette. Until that notification is issued, the proviso applies and tax remains at 4% of turnover. Furnishing Form C under Section 8(4) does not by itself secure the concessional rate, and a corresponding intra-State rate of 2% under State law does not extend to inter-State sales. The operative point is that the statutory notification is a condition precedent to the lower rate.

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Issues: Whether, in the absence of a notification under Section 8(1) of the Central Sales Tax Act, inter-State sales of goods manufactured from tax-paid raw material were taxable at 2% merely because the assessee had furnished Form C and the corresponding intra-State sales attracted tax at 2%.

Analysis: The statutory scheme of Section 8(1) makes the concessional rate dependent on a notification issued by the Central Government in the Official Gazette. Until such notification takes effect, the proviso continues to operate and prescribes tax at 4% of turnover. Compliance with Section 8(4) by furnishing Form C does not by itself displace the requirement of a notification under Section 8(1). The fact that similar goods suffered 2% tax within the State under the State notification did not, by itself, extend the same rate to inter-State sales under the Central Sales Tax Act.

Conclusion: The rate of tax could not be reduced to 2% in the absence of the requisite notification under Section 8(1); the proviso applied and the inter-State sales were liable at 4%.

Ratio Decidendi: The concessional rate under Section 8(1) of the Central Sales Tax Act becomes available only on issuance of the required notification, and until then the proviso fixes the tax at 4% notwithstanding Form C compliance or the intra-State rate of tax.

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