Form S.T. 41 not exclusive proof of tax payment; authorities must consider other evidence before denying exemption.

Section 9B(2) placed the burden on the principal to prove that the commission agent had paid tax, but it did not make Form S.T. 41 the only permissible mode of proof. Rule 42A(2) treated Form S.T. 41 as one available means of satisfying that burden, and the authorities were required to consider other relevant material such as notices, replies, account statements and sale bills. They could also use section 24 powers to compel documents, examine witnesses and verify the commission agent's assessment record before deciding exemption eligibility. The revision was allowed in favour of the assessee.

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Issues: Whether production of Form S.T. 41 was the only permissible mode of proving that tax had been paid by the commission agent so as to claim exemption under section 9B(2) read with rule 42A(2), and whether the authorities were bound to consider other evidence and exercise their powers under section 24.

Analysis: Section 9B(2) casts the burden on the principal to satisfy the assessing authority that the commission agent has paid tax on the relevant goods, but it does not prescribe a single exclusive method of proof. Rule 42A(2) indicates that Form S.T. 41 is one facility for discharging that burden, and the use of the word "may" shows that it is not the only mode. The assessee had produced other material, including notice, reply, account statement, and sale bills, which required consideration. The authorities also had power under section 24 to compel attendance, production of documents, and examination of witnesses, and could examine the commission agent's assessment record to verify whether tax had in fact been collected and paid.

Conclusion: Form S.T. 41 was not the exclusive means of proof, and the authorities were required to consider the other evidence and, if necessary, use their powers under section 24 before deciding the assessee's entitlement to exemption. The revision was therefore allowed in favour of the assessee.

Ratio Decidendi: Where a statutory rule provides one recognised mode of proof for establishing payment of tax by a commission agent, that mode is not exclusive unless the provision expressly so states; the assessing authority must consider all relevant evidence and may use its statutory powers to ascertain the truth of the claim.

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