Inter-State sales tax on paints follows the higher statutory rate under Section 8(2)(b), not the former State levy.

Inter-State sales of paints were taxed under Section 8(2)(b) of the Central Sales Tax Act, 1956 at the higher of the Central rate or the rate applicable inside the appropriate State. Because the local State rate for paints had been reduced to 7% by the relevant Government Order, and the turnover related to inter-State sales without C/D forms, the statutory 10% Central rate applied. The disputed turnover was therefore taxable at 10%, not 15%, and the State revision failed.

---

---

Issues: Whether inter-State sales of paints were taxable at 10% or 15%.

Analysis: The applicable State rate for paints under the Sixth Schedule was reduced to 7% by G.O. Ms. No. 252 dated 19.05.1995 for sales by cottage and small scale industries. Under Section 8(2)(b) of the Central Sales Tax Act, 1956, tax on inter-State sales of goods other than declared goods is chargeable at 10% or at the rate applicable to sales inside the appropriate State, whichever is higher. Since the local rate stood reduced to 7% and the assessee's turnover related to inter-State sales not covered by C/D forms, the higher statutory rate under the Central Sales Tax Act governed the levy.

Conclusion: The disputed turnover was liable to tax at 10%, not 15%, and the revision by the State failed.

Ratio Decidendi: For inter-State sales of goods other than declared goods, Section 8(2)(b) of the Central Sales Tax Act, 1956 mandates application of the higher of the Central rate and the rate applicable within the appropriate State.

---