Later exemption notification controlled inter-State sales tax; 4% levy without C-Form could not be applied.

Concurrent findings that the assessee had made inter-State sales of hydraulic excavators were not disturbed, but liability depended on the applicable notification. The 1992 notification prescribed tax at 4% where C-Form was not furnished, whereas the later 2000 exemption notification, issued under the Rajasthan Sales Tax Act, 1994, limited tax to 2% and did not impose any C-Form condition. The later notification therefore governed the transactions, and tax could not be levied at 4% under section 8(1) of the Central Sales Tax Act, 1956. Additional tax, penalty and interest were not payable.

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Issues: Whether the assessee was liable to pay additional tax, penalty and interest on inter-State sales of hydraulic excavators by applying the 1992 notification requiring tax at 4% without C-Form, or whether the later 2000 exemption notification restricting tax to 2% governed the transaction.

Analysis: The finding that the assessee had effected inter-State sales was concurrent and was not open to interference. The dispute turned on the applicable notification. The 1992 notification specifically fixed tax at 4% for such inter-State sales without furnishing C-Form, while the 2000 notification, issued under Section 15 of the Rajasthan Sales Tax Act, 1994, granted exemption from tax to the extent the rate exceeded 2% and did not impose any condition regarding C-Form. Since the later notification prescribed the tax rate at 2% and did not attach a C-Form condition, the assessee could not be fastened with liability to pay tax at 4% under Section 8(1) of the Central Sales Tax Act, 1956.

Conclusion: The assessee was not liable for additional tax, penalty or interest, and the revision petition failed.

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