Judgment

B. P. JEEVAN REDDY, J.:- Rates of tax on sales effected in the course of inter-State trade or Commerce are prescribed by Section 8 of the Central Sales Tax Act, 1956. The rates prescribed vary depending upon the person to whom the goods are sold as well as the nature of the goods. A reading of subsections (1) and (2) yields the following position:

(1) In the case of sale to government of any goods, the rate is 4 . [Section 8(1)(a)]

(2) On sale of goods of the description referred to in sub-section (3) to a registered dealer other than the government - @ 4 . [Section 8(1)(b)]

(3) In the case of sales not falling under sub-section (1) of Section 8, the tax on turnover shall be calculated at twice the rate applicable to the sale or purchase of such goods inside the appropriate State, if they are declared goods. [Section 8(2)(a)]

(4) In the case of sale of goods other than declared goods and not falling under subsection (I), tax shall be levied at the rate of 10 or at the rate applicable to the sale or purchase of such goods inside the appropriate State, whichever is higher. [Section 8(2)(b)]

2. Sub-section (2-A) provides for a lower rate of tax, or exemption from tax. as the cas