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TMI Blog1967 (8) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... to the respondent under an inter-State sale within the purview of section 3(a) and that when they were in transit, he transferred the documents of title to a buyer in this State. It is again not in controversy that sales of the particular goods are exempt from tax in the State of Gujarat. Neither the respondent issued declarations in Form C to the Gujarat seller nor the latter certified to the former in Form E-1. Nevertheless, the revenue took the view that the subsequent sales effected by the respondent being outside the purview of section 6(2), it has jurisdiction to tax such sales under the proviso to section 9(1). The Tribunal did not accept that view and that is how the tax case is brought by the State before us. In our opinion, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer, in whose favour the certificate is issued, will deal in the course of his business. The following section prescribes the rates of tax. Sub-section (1) provides for a concessional rate subject, to certain conditions, and where the requisites for the concessional rates are not satisfied, sub-section (2) subjects the transactions to a rate specified therein or the rate for such goods prevailing in the appropriate State, whichever is higher. One of the requisites to qualify for the concessional rate is what is prescribed by sub-section (4) of section 8, and that is, a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vers cases of subsequent sales which do not fall within sub-section (2) of section 6 and fixation of the State which will have jurisdiction to tax in respect of such sales. Subsection (2) of section 6 contemplates subsequent sales by a registered dealer to a registered dealer. If, therefore, the sale is by a registered dealer to a non-registered dealer, it will be outside the purview of section 6(2). But even where the sale is by a registered dealer to a registered dealer, which will fall within sub-section (2), its application will depend on compliance with the proviso thereto. That is to say, although the subsequent sale is by a registered dealer to a registered dealer, the exemption of such a sale will depend upon the second seller furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n with the purchase of such goods, it means that the C Form certificate has been obtained in respect of a particular first sale of the goods. The concluding phraseology in the proviso is not used in the abstract; but since the jurisdiction is to be localised with reference to particular transactions, the form spoken of must necessarily relate to such transactions. So much, as it appears to us, is clear from a reading of section 8(4)(a) with the proviso to section 9(1). It may be said that the construction we are inclined to place upon the proviso suffers from this weakness, namely, that the jurisdiction of the taxing State will depend upon the act or failure on the part of the subsequent seller. But we think that very rarely he would fail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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