#include "touch.c"


void touch_reset()
{
    output_low(TOUCH_PIN);
    delay_us(500);
    output_float(TOUCH_PIN);
}


void Set_Time(unsigned int32 Time)
{
    
   touch_write_byte(0x99);             //Write Clock register command
   touch_write_byte(0x0C);             //Set osc to run
            
   touch_write_byte(MAKE8(time, 0));   //LSB
   touch_write_byte(MAKE8(time, 1));
   touch_write_byte(MAKE8(time, 2));
   touch_write_byte(MAKE8(time, 3));   //MSB
                        
   touch_reset();                      //Transfer data from R/W buffer to register
    
}

BYTE buffer_ID[8];
unsigned int32 Get_ID()
{  

    BYTE i;
    
    touch_write_byte(0x33);
    
    for(i=0;i<8;++i)
    buffer_ID[i]=touch_read_byte();

    touch_reset();                      //According to datasheet flow chart it is needed
    
    return (buffer_ID);

}

   int8 TimeLSB, Time2, Time3, TimeMSB;
   int8 control_reg;
unsigned int32 Get_Time()
{
   touch_write_byte(0x66);             //Read Clock register command
   control_reg = touch_read_byte();    //Read control register
            
   TimeLSB  =  touch_read_byte();      //LSB
   Time2    =  touch_read_byte();
   Time3    =  touch_read_byte();
   TimeMSB  =  touch_read_byte();      //MSB

   touch_reset();                      //According to datasheet flow chart it is needed

   return(make32(TimeMSB, Time3, Time2, TimeLSB));

}

int8 Get_Status()
{
   int8 control_reg;
    
   touch_write_byte(0x66);             //Read Clock register
   control_reg = touch_read_byte();    //Read control register
    
   touch_reset();                      //Stop reading
    
   return(control_reg);
}

void main() {
   BYTE buffer[8];
   BYTE i;

   printf("\r\nWaiting for a touch device...\r\n");
   while (TRUE) {

    if(touch_present()) {
    Get_ID();
    }
    printf("\r\nID ok\r\n");

    Get_Time();
    printf("\r\ntime ok\r\n");

  }

}

    touch_reset();                      //According to datasheet flow chart it is needed

Если таки делать в соответствии с даташитом, то сбросом шины операции на ванвари _начинаются_, а не заканчиваются.
И придумайте (себе) объяснение для каши из
BYTE buffer_ID[8];
unsigned int32 Get_ID()
{
...
return (buffer_ID);
}
и т.п. бесполезных return'ов (глобальных переменных).

И #include "touch.c" очень глазки режет...