Recognition certificate under concessional tax rules continues to protect eligible purchases despite an alleged breach, subject to separate action.

A recognition certificate under section 4-B entitles the assessee to concessional tax on the net purchases covered by that certificate, including oil-seeds purchased within the eligible turnover. An alleged breach of the recognition certificate does not, by itself, extinguish that statutory benefit; any such breach must be dealt with through separate action under the relevant law. The concessional rate therefore continues to apply to the purchases covered by the certificate, and relief was granted to that extent with consequential fresh orders.

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Issues: Whether the assessee, holding a recognition certificate, was entitled to concessional tax under section 4-B on the entire purchase turnover of oil-seeds and whether any alleged breach of the recognition certificate could deny that benefit.

Analysis: The assessee was found to hold a recognition certificate under section 4-B(2) and was therefore entitled to the benefit contemplated by section 4-B(1)(a) on the net total purchases of oil-seeds covered by that certificate. The alleged breach of the recognition certificate, even if assumed, was held to be a matter for separate action under the relevant law and did not by itself extinguish the assessee's entitlement to the concessional rate under section 4-B(1)(a).

Conclusion: The assessee was entitled to concessional tax on the total purchase of oil-seeds in the proportion of 13.83 per cent, and the Tribunal's order was set aside to that extent.

Final Conclusion: The revision succeeded in part, with the assessee obtaining the declared concessional treatment on the eligible purchase turnover and consequential directions for fresh orders.

Ratio Decidendi: Entitlement to concessional tax under a recognition certificate cannot be denied merely on the basis of an alleged breach; the proper course is separate action under the law, while the statutory benefit continues for purchases covered by the certificate.

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