Prescribed tax declaration in statutory form is sufficient for concessional rate; no extra proof can be demanded.

Under section 5(3-A) of the Karnataka Sales Tax Act, concessional tax treatment is available where the dealer sells an identifiable constituent of the finished product and the purchaser uses it as a component part of goods in the Second Schedule. Rule 38-A requires form 37 as the statutory declaration supporting the claim. Once the prescribed declaration is duly furnished, the assessing authority cannot insist on additional proof of further circumstances to deny the concession. The declaration in the prescribed form is binding for the purposes of the claim, and the assessee is entitled to the concessional rate on that basis.

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Issues: Whether, for claiming concessional rate of tax under section 5(3-A) of the Karnataka Sales Tax Act, the assessee was entitled to rely on the declaration in form 37 furnished in accordance with rule 38-A of the Karnataka Sales Tax Rules, and whether the assessing authority could insist on further proof that the goods sold were component parts of the finished product mentioned in the Second Schedule.

Analysis: Section 5(3-A), read with its explanation, grants concessional tax treatment where the dealer sells an article forming an identifiable constituent of the finished product and the purchaser uses it as a component part of goods specified in the Second Schedule. Rule 38-A prescribes form 37 as the statutory declaration to be furnished in support of the claim. Once the prescribed declaration is duly furnished, the statutory scheme does not permit the assessing authority to demand additional proof of other circumstances to deny the concession. The declaration in the prescribed form is binding on the assessing authority for the purposes of the claim.

Conclusion: The assessee was entitled to the concessional rate on the strength of form 37, and the authorities were not justified in rejecting the claim on the ground that further proof was required.

Ratio Decidendi: Where a statute prescribes a declaration in a specified form as the mode of proving entitlement to a concessional rate, compliance with that prescribed form is sufficient and the assessing authority cannot insist on further proof inconsistent with the statutory procedure.

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