Strict compliance governs concessional sales tax: seller must verify declaration form and buyer's registration certificate before claiming relief.

A concessional sales tax claim under the Madhya Pradesh General Sales Tax Act, 1958 required strict compliance with the statutory conditions in section 8(1) and rule 20(4). A selling dealer could not rely on Form XII-A alone; he also had to verify that the goods sold were specified in the purchasing dealer's registration certificate as raw materials for manufacture. Where that inclusion was absent, the condition for concession was not satisfied, and the tax concession could not be claimed. The reference was answered against the assessee and in favour of the department.

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Issues: Whether a selling dealer can claim concessional sales tax merely by obtaining a declaration in Form XII-A, or whether he must also satisfy himself that the goods sold are specified in the purchasing dealer's registration certificate as raw materials for manufacture.

Analysis: The reference turned on the construction of section 8(1) of the Madhya Pradesh General Sales Tax Act, 1958 and rule 20(4) of the Rules made thereunder. The controlling principle applied was that the concessional rate is available only on strict compliance with the statutory conditions. The declaration form is not enough by itself; the selling dealer must also verify that the goods in respect of which the concession is claimed are included in the purchasing dealer's registration certificate. If the goods are not so included, the statutory condition for concession is not satisfied.

Conclusion: The responsibility lay on the selling dealer to satisfy himself that the goods sold were mentioned in the purchasing dealer's registration certificate as raw materials for manufacture. The answer was, therefore, against the assessee and in favour of the department.

Ratio Decidendi: A statutory tax concession can be claimed only on strict fulfillment of the prescribed conditions, and a selling dealer must ensure both the prescribed declaration and the inclusion of the goods in the purchasing dealer's registration certificate before claiming the concessional rate.

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