Kania, J. - (1.) This is a reference under section 61(1) of the Bombay Sales Tax Act, 1959, read with section 9(3) of the Central Sales Tax Act, 1956. The question referred to us for our opinion is : "Whether on a true and proper interpretation of the provisions of rule 4-B(2) of the Central Sales Tax (Bombay) Rules, 1957, and section 8(4) of the Central Sales Tax Act, 1956, and, on the facts and in the circumstances of the case, it was permissible in law to the appellate authority to accept the declarations in form C, which were admittedly not produced by the respondents at the time of assessment, in exercise of his appellate jurisdiction and subject the impugned sales to a concessional rate of tax under section 8(1) of the Central Sales Tax Act, 1956 ?"
(2.) It may be useful to set out at this place the material provisions upon which the arguments in the present case turn. Section 8(1) of the Central Sales Tax Act, 1956 (hereinafter referred to as "the said Act"), at the material time, ran as follows : "(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."
(3.) Sub-section (4) of section 8 of the said Act runs as follows : "(4) 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 furnished 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.";