Sales tax liability under certificate conditions applies on statutory facts, not on filing a declaration.

The proviso to section 5(2)(a)(ii) of the Orissa Sales Tax Act creates substantive liability when goods covered by the purchasing dealer's certificate are used for a purpose other than that specified. Rule 27(2) of the Orissa Sales Tax Rules, 1947 is only an evidentiary requirement for claiming deduction or exemption and does not control, enlarge, or restrict that statutory liability. Absence of a declaration may affect proof, but the proviso applies whenever the underlying statutory facts are established, regardless of whether a declaration was furnished.

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Issues: Whether the proviso to section 5(2)(a)(ii) of the Orissa Sales Tax Act operates only if the purchasing dealer gives a declaration under rule 27(2) of the Orissa Sales Tax Rules, 1947.

Analysis: The proviso to section 5(2)(a)(ii) creates the substantive liability when goods specified in the purchasing dealer's certificate are used for purposes other than those specified therein. Rule 27(2) merely prescribes the evidentiary mode for claiming deduction or exemption and does not control, enlarge, or restrict the statutory liability created by the Act. The absence of a declaration may affect proof, but it does not determine whether the proviso applies. The controlling question is whether the facts stated in the proviso are found to exist.

Conclusion: The proviso operates whenever the statutory facts exist, irrespective of whether the purchasing dealer furnished a declaration under rule 27(2).

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