Mandatory form C declaration condition defeats sales tax exemption where the rule grants no relaxation for late filing.

Furnishing the declaration in form C was held to be a mandatory condition for claiming exemption on a subsequent sale under section 6(2) of the Central Sales Tax Act. Rule 8-B(4) used imperative language and allowed late filing only for the E-I or E-II certificate, not for form C, leaving no discretion to the dealer or assessing authority in relation to that declaration. Failure to file form C therefore defeated the exemption and disentitled the dealer to tax relief.

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Issues: Whether rule 8-B(4) of the Central Sales Tax (U.P.) Rules was mandatory or directory, and whether exemption from tax could be denied for failure to furnish the declaration in form C.

Analysis: Rule 8-B(4) prescribed the conditions for claiming exemption on a subsequent sale under section 6(2) of the Central Sales Tax Act. The rule used mandatory language that no exemption shall be granted if the declaration in form C had not been furnished. The proviso gave limited latitude only in respect of the E-I or E-II certificate, allowing later filing within the prescribed time, but no similar relaxation was provided for form C. The scheme of the rule therefore left no discretion either with the dealer or with the assessing authority in relation to form C.

Conclusion: The requirement to furnish declaration in form C was mandatory, and failure to comply disentitled the dealer to exemption from tax.

Ratio Decidendi: Where a statutory exemption provision expressly makes furnishing of a prescribed declaration a condition precedent and grants relaxation only for other specified documents, the unrelaxed requirement is mandatory and non-compliance defeats the exemption.

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