Concessional sales tax rate turns on the prescribed purchaser declaration, not on the seller verifying later end-use.

A selling dealer's entitlement to a concessional sales tax rate depended on obtaining and furnishing the prescribed purchaser's declaration under the statutory scheme. Once that declaration was duly produced, the dealer satisfied the formal condition for the concession and was not required to verify the truth of the purchaser's stated end-use or later misuse of the goods. Any false or inaccurate declaration attracted consequences against the purchasing dealer under the Act, not denial of the concession to the seller unless the statute expressly provided otherwise. The commentary therefore supports the view that the concessional rate cannot be refused merely because the revenue disputes the declaration or the purchaser's actual use.

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Issues: Whether the selling dealer was entitled to the concessional rate under section 5(3) of the Kerala General Sales Tax Act, 1963 on the strength of the purchaser's declaration, notwithstanding the revenue's objection that the goods were not directly used in manufacture and that the declaration was allegedly false or inaccurate.

Analysis: The statutory scheme under section 5(3), its proviso, rule 28 and form 18 required the selling dealer to obtain and furnish a prescribed declaration from the purchasing dealer. Once that declaration was duly obtained and produced, the selling dealer satisfied the statutory condition for the concessional rate. The Court held that the seller was not required to investigate the truth of the declaration or the manner in which the purchaser later used the goods. The scheme placed the consequence of misuse or false declaration on the purchasing dealer, and the Act itself provided penal consequences against him. The Court applied the same approach adopted by the Supreme Court in analogous sales tax legislation and rejected a construction that would read additional limitations into the taxing provision.

Conclusion: The assessee was entitled to the concessional rate of one per cent, and the revenue could not deny that benefit on the ground that the purchaser may have used the goods otherwise than as declared.

Final Conclusion: The tax revision cases failed, the Tribunal's order restoring the assessing authority was upheld, and the assessee's assessment at the concessional rate stood undisturbed.

Ratio Decidendi: Where a taxing statute grants a concessional rate subject to production of a prescribed purchaser's declaration, the selling dealer's entitlement depends on compliance with that statutory formality and cannot be defeated by later questioning the truthfulness or end-use stated in the declaration, unless the statute itself so provides.

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