Ramaswami, J. - (1.) This appeal is brought, by special leave, from the judgment of the High Court of Kerala dated November 29, 1963 in Writ Petition, O. P. No. 2165 of 1962.
(2.) The respondent (hereinafter called the 'assesses') was a dealer in Cocoanut oil business having inter-State sales. For the year 1959-60 the assessee was assessed to sales tax under S. 8 of the Central Sales Tax Act (Act 74 of 1956), hereinafter called the 'Act'. Out of a total turnover of Rs. 2,30,990 and odd determined by the Sales Tax Officer, only a sum of Rs. 1,89,734 and odd was supported by proper declaration Form 'C'. Tax was therefore imposed by the Sales Tax Officer at the rate of 1 per cent on the turnover of Rs. 1,93,346 and at 7 per cent on the balance namely. Rs. 37,645. The assessee did not file the declaration forms on or before the prescribed date, i.e., February 16, l961 but he actually filed the declaration forms on March 8, 1961 before the order of assessment was made, the delay being explained as due to late receipt of the declaration forms from the purchaser in Madras The assessee preferred an appeal to the Appellate Assistant Commissioner but the appeal was dismissed. The assessee took the matter in revision before the Deputy Commissioner of Sales Tax but the revision petition was dismissed. Thereafter, the assessee moved the Kerala High Court for grant of a writ under Article 226 of the Constitution for quashing the orders of the Sales Tax Officer dated June 13, 1961 and the order of the Appellate Assistant Commissioner dated December 13, 1961. By its order dated November 29, 1963, the High Court allowed the writ petition of the assessee and quashed the orders of assessment of sales tax and directed the Sales Tax Officer in make a fresh order of assessment after taking into consideration the declaration forms furnished by the assesses on March 8, 1961.
(3.) Section 8 of the Act, as it stood on the material date was to the following effect:- "8 (1) Every dealer, who in the course of inter-State trade or commerce - (a) sells to the Government any goods or (b) sells to a registered dealer other than the Government goods of the description referred to in sub-section (3); shall be liable to pay tax under this Act, which shall be one per cent of his turnover. (2) The tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates to the sale of goods in the course of inter-state trade or commerce not falling within sub-section (1) (a) in the case of declared goods, shall be calculated at the rate applicable to the sale or purchase of such goods inside the appropriate State and (b) in the case of goods other than declared goods, shall be calculated at the rate of seven per cent or at the rate applicable to the sale or purchase of such goods inside the appropriate State, whichever is higher; and for the purpose of making any such calculation any such deader shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate State, notwithstanding that he, in fact, may not be so liable under that law. The provisions of sub-section (1) shall not apply to any sale in the course of inter-State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner (a) a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority, or (b) if the goods are sold to the Government not being a registered dealer a certificate in the prescribed form duly filled and signed by a duly authorised officer of the Government." ;