The scheme under the Central Sales Tax Act and the Orissa Sales Tax Act is such that one set of tax whether under the Orissa Act or the Central Act is exigible in the case of declared goods.

JUDGMENT

R. N. MISRA, J. - The Member, Sales Tax Tribunal of Orissa, has referred the following questions under section 24(1) of the Orissa Sales Tax Act (hereinafter referred to as the Act) for our determination :

"(1) Whether in the facts and circumstances of the case, the dealer is entitled to exemption of Central sales tax on the turnover of sales on the purchase of which tax has been levied inside the State ? Would it make any difference if the purchase tax had not been paid by the dealer but by his vendor who was the first purchaser ?

(2) Whether in the facts and circumstances of the case, the Tribunal was right in allowing the exemption claimed and reducing the assessment to returned figure and thereby accepting the return of the dealer ?"

2. The assessee is a registered dealer under the Central Sales Tax Act (hereinafter referred to as the Central Act) bearing No. GAC-I-5-45 and deals in mahua seeds as one of the items of trade. Mahua seeds are declared goods under the Central Act. During 1967-68 the assessee sold mahua seeds in the course of inter-State trade. On scrutiny of the assessee's accounts it transpired that he had claimed exemption on a turnover of sale to the tune of Rs. 23,686 of mahua seeds on the ground that purchase tax had been paid at the first point on these goods. Mahua seed is exigible to purchaser tax in Orissa under section 3-B of the Act. Mangulu Sahu had paid purchase tax on the mahua seeds in question. The assessing officer did not allow exemption as claimed. The assessee appealed. The first appellate authority confirmed the assessment. In second appeal by the assessee the Tribunal found :

"The sole point for consideration in this appeal is if the claim of exemption towards payment of tax on the sale turnover of mahua seeds worth Rs. 23,686 would be accepted since purchase tax had been paid on this mahua flower by the first purchaser, namely, Mangulu Sahu & Co., a registered dealer under the Orissa Sales Tax Act. That mahua flower (should be seeds) is a declared goods on which purchase tax had been paid by Mangulu Sahu & Co. is not disputed nor the appellant's despatching the same beyond Orissa is disputed. The department's contention is if Mangulu Sahu & Co. itself would have exported mahua beyond Orissa in the course of inter-State trade then only the exemption would have applied, not in the case of the present assessee who had not paid the purchase tax himself. The department takes its stand on the notification of 8th December, 1966, bearing No. 43637 - C.T.A.-200/66-F. I do not think such a narrow construction as given by the department to the notification is permissible. The exemption contemplated in the notification is on the declared goods. It makes no difference between the dealer who had paid the purchase tax himself on the declared goods and another who had not paid the purchase tax and is thus a subsequent purchaser from the one who had initially paid the purchase tax. I do not agree that there is any emphasis put by this notification on the dealer which is obviously attached to the goods that are declared."

In the reference application made by the State of Orissa it was contended before the Tribunal that section 15 of the Central Act imposed restrictions and conditions in regard to levy of tax on sales or purchases of the declared goods within the State. Sub-section (a) thereof provides that tax payable inside the State shall not exceed the prescribed rate and also such tax shall not be levied at more than one stage. Sub-section (b) provides for refund of sales tax levied on the intra-State sale or purchase when such goods are sold in the course of inter-State trade or commerce, but subject to conditions, if any, provided in the State law.

3. Section 8(5) and 15(b) of the Central Act are relevant for our purpose. Those provisions are as follows :

"8. (5) Notwithstanding anything contained in this section, the State Government may, if it is satisfied that it is necessary so to do in