VEERASWAMI, J.

A turnover of Rs. 14, 025 was charged to tax at 7 per cent., the revenue being of the view that the assessee failed to file along with the returns declarations in "C" Forms. The assessee claimed exemption of the entire turnover from tax under section 6(2) of the Central Sales Tax Act and had duly filed the "E-I" Forms. The Tribunal accepted the assessee's contention that sub-rules (2) and (5) of rule 9-B of the Central Sales Tax (Madras) Rules, 1957, are in excess of the rule-making power of the State Government and allowed the appeal. The State is the petitioner in this Court.

Under section 6(1), every inter-State sale is liable to tax. But this is subject to the other provisions of the Act. Second inter-State sales to registered dealers, by transfer of documents during movement of goods are, however, exempted from tax by sub-section (2) of section 6, provided the requirements of the proviso to the sub-section are satisfied. The proviso is as follows :

"Provided that no such subsequent sale shall be exempt from tax under this sub-section unless the dealer effecting the sale furnishes to the prescribed authority in the prescribed manner a certificate duly fi