S. C. AGRAWAL, J. - (1.) THIS is a revision under section 15 of the Rajasthan Sales Tax Act, 1954, as amended by the Rajasthan Sales Tax (Amendment) Act, 1984, wherein the petitioner, namely, Commercial Taxes Officer (Revision), Ajmer, is seeking to challenge the orders passed by the Board of Revenue for Rajasthan (hereinafter referred to as "the Board of Revenue" ). M/s. Rajasthan Small Industries Corporation, non-petitioner herein (hereinafter referred to as "the assessee"), is a Government company carrying on business as an importer, manufacturer and dealer in various commodities, including coal. During the accounting period relevant to the assessment year 1962-63, the assessee purchased coal from collieries in Bihar for the purpose of supplying the same to the allottees within the State of Rajasthan. The supplying colliery in Bihar had charged Central sales tax at the rate of 2 per cent on the sales of coal made by it in rakes and sent the railway receipts in favour of the assessee. The assessee endorsed these railway receipts to the various allottees while the goods were in movement. The sales of coal so made by the assessee during the relevant assessment year amounted to Rs. 6,55,623. 54. Before the assessing authority, namely, Commercial Taxes Officer, Special Circle I, Jaipur, the assessee submitted that it was not liable to pay sales tax under the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act") on the aforesaid sales of coal for the reason that the said transactions did not constitute sale under section 2 (g) of the Act and further that in any event the said transactions could not be subjected to the payment of Central sales tax a second time as Central sales tax at 2 per cent had already been charged on the same in Bihar and coal is included in the category of declared goods under section 14 of the Act. The assessing authority held that the transactions constitute transfer of property for valuable consideration and were covered by the definition of "sale" as contained in section 2 (g) of the Act and since the said sales were effected by transfer of documents during the movement of the goods from the State of Bihar to the State of Rajasthan the same were inter-State sales under section 3 (b) of the Act and were chargeable to tax under the provisions of the Act. The assessing authority, therefore, imposed Central sales tax at the rate of 2 per cent on such sales. The assessee filed an appeal against the said order of assessing authority which was dismissed by the Deputy Commissioner (Appeals-I), Commercial Taxes, Jaipur. The Deputy Commissioner held that the sales made by the assessee by transfer of the railway receipts during the course of movement of the goods were covered by section 3 (b) of the Act and were inter-State sales. The Deputy Commissioner further held that section 6 (2) (B) of the Act could not apply to the present case because the conditions mentioned in the proviso appended to that section, were not fulfilled and the only question was as to whether the proviso appended to section 9 (1) shall apply or not and since there was nothing to preclude the assessee from obtaining C forms from the assessing authority in the State of Rajasthan in connection with the said transactions, the proviso to section 9 (1) was not applicable. The Deputy Commissioner also rejected the contention urged on behalf of the assessee that in view of section 15 of the Act the assessee was not liable to pay any Central sales tax. The assessee filed a revision before the Board of Revenue and the same was allowed by the Chairman of the Board of Revenue by order dated 22nd December, 1976. The learned Chairman of the Board of Revenue held that section 3 (b) of the Act was not applicable on the transactions in question because movement of the goods was within the same State. The learned Chairman of the Board of Revenue was also of the opinion that the provisions of section 15 of the Act were applicable and under the said provisions declared goods should not, in the aggregate, suffer a tax at the rate of more than 2 per cent both on inter-State and intra-State sales. The learned Chairman of the Board of Revenue also held that in view of section 9 (1) of the Act, Central sales tax could not be levied by the State of Rajasthan. The petitioner filed a special appeal against the said order of the Chairman of the Board of Revenue which was disposed of by a Division Bench of the Board of Revenue by order dated 19th February, 1979 whereby the order of the learned Chairman of the Board of Revenue was affirmed. Thereafter the petitioner moved an application under section 15 (1) of the Rajasthan Sales Tax Act, 1954 for referring to this Court the question arising from the order passed by the Division Bench of the Board of Revenue. The said application of the petitioner was allowed by the Board of Revenue by order dated 17th December, 1979, and the Board of Revenue referred the following questions for the opinion of this Court : " (1) Whether, on the facts and in the circumstances of the case, the turnover of Rs. 6,55,623. 54 involving sale of coal (which is declared goods) was liable to Central sales tax in Rajasthan as inter-State sales under section 9 of the Central Sales Tax Act connected provisions, when Central sales tax had already been paid on the same goods in another State where the movement of the goods in question had commenced ? (2) Whether, on the facts and in the circumstances of the case, section 15 of the Central Sales Tax Act would apply ?"
(2.) ON the basis of the aforesaid order of reference, this reference was registered as D. B. Sales Tax Reference No. 79 of 1980. During the pendency of the reference the Rajasthan Sales Tax Act, 1954 was amended by the Rajasthan Sales Tax (Amendment) Act, 1984 and section 15 of the Rajasthan Sales Tax Act was substituted. Under the amended provisions of section 15 of the Rajasthan Sales Tax Act, the earlier provision with regard to reference on a question of law to this Court has been substituted by revision by the High Court in special cases. Section 13 of the Rajasthan Sales Tax (Amendment) Act, 1984 contains transitory provisions and in sub-section (11) of section 13 of the said Act it has been provided that every reference made by the Board of Revenue before the date of coming into force of the Amendment Act of 1984 shall be deemed to be an application for revision under section 15 of the Rajasthan Sales Tax Act as substituted by the Amendment Act of 1984, and shall be disposed of accordingly. In view of the aforesaid provisions contained in sub-section (11) of section 13 of the Amendment Act of 1984 the reference which was pending before this Court has been treated as a revision and has been registered as S. B. Sales Tax Revision No. 68 of 1987 and it is being disposed of as a revision under section 15 of the Rajasthan Sales Tax Act as amendment by the Amendment Act of 1984. In section 15 of the Rajasthan Sales Tax Act, 1954 as amended by the Rajasthan Sales Tax (Amendment) Act, 1984, it is provided that the application for revision shall precisely state the question of law involved in the case. In the present case, I find that the Board of Revenue in its order dated 17th December, 1979, has framed two questions of law which arise for consideration before this Court. The learned counsel for both the parties have made submissions before me on both these questions. Before I deal with the submissions of the learned counsel, I may refer to the relevant provisions of the Act. Section 3 of the Act prescribes the conditions in which a sale or purchase of the goods can be said to take place in the course of inter-State trade or commerce. In clause (b) of the said section it is provided that a sale or purchase of goods shall be deemed to take placed in the course of inter-State trade or commerce if the sale or purchase is effected by a transfer of documents of title to the goods during their movement from one State to another. Explanation I in section 3 provides that where goods are delivered to a carrier or other bailee for transmission, the movement of the goods shall, for the purpose of clause (b), be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee. Section 6 deals with the liability to tax on inter-State sales. In sub-section (1) to section 6 tax under the Act is payable on all sales of goods other than electrical energy effected by a dealer in the course of inter-State trade or commerce during any year. In sub-section (2) of section 6 it is provided that where a sale of any goods in the course of inter-State trade or commerce has either occasioned the movement of such goods from one State to another or has been effected by a transfer of documents of title to such goods during their movement from one State to another, any subsequent sale during such movement effected by a transfer of documents of title to such goods shall be exempt from tax under the Act if the said subsequent sale is (A) to the Government, or (B) to a registered dealer other than the Government, if the goods are of the description referred to in sub-section (3) of section 8 of the Act. The aforesaid exemption from tax granted under sub-section (2) of section 6 is subject to the fulfilment of the conditions laid down in the provisos to sub-section (2) of section 6 of the Act. Section 8 of the Act prescribes the rates of tax on sales in the course of inter-State trade or commerce. Sub-section (1) of section 8 prescribes the rate of tax in respect of sales specified in clauses (a) and (b ). During the assessment year in question the said rate was 1 per cent. In sub-section (2) of section 8 provision is made with regard to rate of tax in respect of sales of goods made in the course of inter-State trade or commerce which do not fall within sub-section (1 ). Sub-section (4) of section 8 prescribes the conditions which are required to be fulfilled for a sale to be covered by the provisions of sub-section (1) of section 8 of the Act. Section 9 of the Act provides for levy and collection of tax and penalties. Sub-section (1) of section 9 prescribes the State Government which would be competent to levy and collect the tax under the Act on sales of goods effected in the course of inter-State trade or commerce. Section 14 of the Act makes provision for certain goods being declared of special importance in inter-State trade or commerce and section 15 imposes certain restrictions and conditions in regard to tax on sale or purchase of declared goods within a State. In exercise of the powers conferred on it by sub-section (1) of section 13 of the Act, the Central Government has made the Central Sales Tax (Registration and Turnover) Rules, 1957. Sub-rule (1) of rule 12 of the said Rules prescribes that the declaration and the certificate referred to in sub-section (4) of section 8 shall be in forms C and D respectively. In sub-rule (4) of rule 12 it is provided that the certificate referred to in sub-section (2) of section 6 shall be in form E-I or form E-II, as the case may be. In the present case the transactions relate to sale of coal which is included amongst the goods that have been declared to be of special importance in inter-State trade or commerce under section 14 of the Act. There is no dispute between the parties that the coal which is the subject-matter of the transactions in question had been purchased by the assessee from collieries in Bihar and the supplying colliery has charged 2 per cent Central sales tax and after loading the goods in railway had sent the railway receipts in favour of the assessee. While the said goods were in movement from the State of Bihar to the State of Rajasthan the assessee transferred the documents, namely, the railway receipts in favour of the various allottees. Since the sales by the assessee in favour of the various allottees were effected by transfer of documents of title in the goods during their movement from the State of Bihar to the State of Rajasthan, the said sales are fully covered by the provisions of section 3 (b) of the Act and they must be held to be sales made in the curse of inter-State trade or commerce. The only question which requires consideration is as to whether the said sales are exempt from payment of tax under the provision of the Act.
(3.) IN this connection it may be stated that exemption from the payment of tax under the Act is permissible under sub-section (2) of section 6 of the Act which lays down that where a sale of any goods in the curse of inter-State trade or commerce has either occasioned the movement of such goods from one State to another or has been effected by the transfer of documents of title to such goods during their movement from one State to another, any subsequent sale during such movement effected by a transfer of documents of title to such goods, (A) to the Government, or (B) to a registered dealer other than the Government if the goods are of the description referred to in sub-section (3) of section 8, shall be exempt from tax under the Act. The first proviso to sub-section (2) of section 6 of the Act, however, prescribes certain conditions which should be fulfilled by the dealer for the purpose of availing the said exemption and under the said proviso it is prescribed that the dealer effecting the sale should furnish to the prescribed authority in the prescribed manner and within the prescribed time or within such further time as that authority may, for sufficient cause, permit (a) a certificate duly filled and signed by the registered dealer from whom the goods were purchased containing the prescribed particulars in a prescribed form obtained from the prescribed authority; and (b) if the subsequent sale is made - (i) to a registered dealer, a declaration referred to in clause (a) of sub-section (4) of section 8, or (ii) to the Government, not being a registered dealer, a certificate referred to in clause (b) of sub-section (4) section 8. In the second proviso it is provided that the declaration or the certificate referred to in clause (b) of the first proviso, need not be furnished in cases covered by clauses (a) and (b) of the second proviso. In view of the aforesaid provisions contained in the first proviso to sub-section (2) of section 6 of the Act it was necessary for the assessee to submit a certificate in form E duly filled and signed by the registered dealer from whom the goods were purchased by the assessee as well as a declaration duly filled and signed by the registered dealer to whom the said goods were sold by the assessee. It appears that the assessee failed to comply with the aforesaid requirement of the first proviso to sub-section (2) of section 6 of the Act. Therefore, it could not claim an exemption in matter of payment of tax under the Act on the basis of sub-section (2) of section 6 of the Act. In the present case the assessee has disclaimed its liability for payment of tax under the provisions of the Act on the basis of the provisions contained in section 9 (1) which during the relevant period read as under : " Section 9, Levy and collection of tax and penalties.- (1) The tax payable by any dealer under this Act on sales of goods effected by him in the course of inter-State trade or commerce, whether such sales fall within clause (a) or clause (b) of section 3, shall be levied by the Government of India, and the tax so levied shall be collected by that Government in accordance with the provisions of sub-section (2), in the State from which the movement of the goods commenced : Provided that, in the case of a sale of goods during their movement from one State to another, being a sale subsequent to the first sale in respect of the same goods, the tax shall, where such a sale does not fall within sub-section (2) of section 6, be levied and collected, in the State from which the registered dealer effecting the subsequent sale obtained or, as the case may be, could have obtained, the form prescribed for the purposes of clause (a) of sub-section (4) of section 8 in connection with the purchase of such goods. " It may be stated that the aforesaid provisions of section 9 were substituted by section 6 of the Central Sales Tax (Amendment) Act, 1969 and the said amendment has bene made with retrospective effect from the date of enactment of the Central Sales Tax Act, 1956. ;