The petitioner had made sales to M/s Diesel Locomotive Works, Varanasi and filed form ‘D’ with the respondent for claiming concessional rate of tax at the rate of 4 percent. However, the same was rejected by the Appellate Authorities. Therefore this Writ Petition. Section 8 (1) of the Act as prevailed at material period under dispute which is as hereunder:

“8. Rate of tax on sales in the course of inter-state trade or commerce-

(1). Every dealer, who in the course of inter-state trade or commerce-

(a) sells to the Government any goods: or

(b) sells to a registered dealer other than the Government goods of the description referred to in sub section 3 shall be liable to pay tax under this Act, which shall be four per cent of this turnover.

Petitioner submits that in the instant case, it is admitted position that the petitioner had sold the goods in question to the Government being a registered dealer but the respondent disallowed the claim of said sale made under Section 8 (1) (a) of the Act on the ground that the same is not supported by declaration in Form C, which is wrong, erroneous and arbitrary since the same is Petitioner submits that similar claim of sale made to the same

Government on earlier occasions were regularly allowed by the respondent concerned in assessment for the past years on the basis of the said certificate in Form D and now the respondents could not take a different stand in subsequent year on similar facts and circumstances which is contrary to “Doctrine of Legitimate Expectation”. Applicable to sale made to registered dealer other than Government. On a decision of Karnataka High Court in the case of Karnataka Dairy Development Corporation Limited Vs. Commissioner of Commercial Taxes the Court stated that One cannot assume that every dealer is a dealer liable to be taxed under the Central Sales Tax Act and, therefore, it is not possible to assume that every dealer should be treated as a registered dealer and in such a situation, he should have issued the declaration under form “C” in the case of purchase in the course of inter-State sales. This apart, as already noted above, the appellant has no control over the manner of functioning of the Indian Railways. The Government of India has issued a declaration and prima facie the same shall have to be accepted without being unnecessarily influenced by the technicalities of procedural matters.”

The Respondent stated that the contents of the two Forms ‘C’ and ‘D’ are different as to their purpose which is apparent. Just as ‘C’ Forms are issued to registered dealers0020‘D’ Forms are issued to the government. The judgment of Karnataka Dairy Development Corporation Ltd. Vs Commissioner of Commercial Taxes (supra) relied upon by the petitioner has no binding effect.