RAMASWAMI, J.

The petitioners are dealers in cotton yarn at Salem in the State of Tamil Nadu. In their return under the Central Sales Tax Act for the assessment year 1963-64, they claimed exemption among others on a turnover of Rs. 2, 50, 439.17 on the ground that they were second inter-State sales effected by them by transfer of documents of title to the goods during their movement from one State to another in pursuance of the earlier sales falling under section 6(2) of the Central Sales Tax Act, hereinafter referred to as the Act. In respect of another turnover of Rs. 4, 47, 911.75, which also related to second inter-State sales by transfer of documents of title to such goods during their movement from one State to another, the petitioners claimed that in view of section 15 of the Act, they were not liable for Central sales tax. Since these two items were alone disputed in this revision petition, it would be enough if we note the facts relating to these two items and the findings of the assessing authority, the Appellate Assistant Commissioner and the Tribunal.

The first item of transaction took place in the following circumstances : The petitioners purchased cotton yarn which is one of the items of declared goods falling under section 14(ii-b) of the Act from a manufacturing mill at Mysore. They obtained certificates from the manufacturing mill in form E-I and also issued the declaration in form C to the mills. The delivery of the goods in all these cases was to be effected by the mills in the States of Gujarat, Maharashtra and West Bengal. When the goods were on their movement from Mysore State to the other States, the petitioners sold the goods by transfer of documents of title to such goods to certain out-of-State purchasers who were not registered dealers. The petitioners claimed exemption in respect of these second inter-State sales under section 6(2). They also contended that, in any case, the proviso to section 9(1) is not applicable in respect of these transactions and that, therefore, the State of Tamil Nadu could not assess them for Central sales tax under that provision. The assessing officer held that since the second inter-State sales by the petitioners were to purchasers outside the State, who are not registered dealers, section 6(2) was not applicable. The assessing officer also held that the proviso to section 9(1) is applicable in respect of this turnover and it is the State of Tamil Nadu which has to levy and collect the tax. Local sales of cotton yarn, which comes under declared goods, is taxable under section 4 of the Tamil Nadu General Sales Tax Act, 1959, hereinafter referred to as the State law, at the rate of one per cent in the relevant assessment year 1963-64, at the point of first sale in the State. Under section 8(1) of the Act, the rate prescribed for inter-State sales at the relevant period was 2 per cent. As the rate for local sales of such goods under the State law was lower than that prescribed for declared goods under the Act, the assessing officer also held that this turnover is liable to be taxed at one per cent under section 8(2A) of the Act. This view was confirmed by both the Appellate Assistant Commissioner and the Sales Tax Appellate Tribunal.The second disputed item of turnover took place in the following manner. The petitioners purchased cotton yarn from a manufacturing mills in this State but the delivery of the goods was to be effected either in Gujarat, Maharashtra or West Bengal. They had obtained certificates from the selling mills in form E-I and had also issued declarations in form C to the selling mills. When the goods were on their movement from this State to other States, the petitioners effected sales by transfer of documents of title to such goods to out-of-State purchasers who were not registered dealers. In respect of this turnover, the contention of the petitioners was that the tax on the first sale in their favour was levied and collected by the State of T