Concessional inter-State sales tax allowed on Form D declarations where prior acceptance and transaction genuineness supported the claim.

Section 8 of the Central Sales Tax Act, 1956 was applied to inter-State sales to Diesel Locomotive Works, with the Court examining entitlement to concessional tax on the basis of Form D declarations. The Court noted that the purchaser was a Government concern and that similar declarations had been accepted in earlier years for the same buyer and comparable transactions. On those exceptional facts, the authorities were found unjustified in denying concessional treatment merely because of the purchaser's registration status, subject to factual verification of the genuineness of the transactions. The Form D declarations were accepted and the impugned assessment, appellate and revisional orders were set aside.

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Issues: Whether the petitioner was entitled to concessional sales tax on inter-State sales to Diesel Locomotive Works on the strength of Form D declarations and whether the assessment, appellate and revisional orders disallowing such benefit were liable to be quashed.

Analysis: The dispute turned on the construction of Section 8 of the Central Sales Tax Act, 1956 and the corresponding declaration requirements. The Court accepted that the purchaser was a Government concern and noted that similar Form D declarations had been accepted in earlier years in respect of the same buyer and similar transactions. In these exceptional facts, the Court held that the State authorities were not justified in taking a different stand and denying concessional treatment merely on the basis of the purchaser's registration status, subject to factual verification of the genuineness of the transaction.

Conclusion: The petitioner was held entitled to acceptance of Form D declarations and to the consequential concessional rate of tax; the impugned orders were set aside.

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