Mandatory declaration requirement under sales tax rules upheld to prevent evasion and secure contemporaneous proof for assessment.

Rule 32(14) of the Kerala General Sales Tax Rules, 1963, requiring a dealer who claims not to be the last purchaser to obtain and file Form No. 25 declarations, was held mandatory because it supports the charging scheme on last purchase of tapioca, prevents tax evasion, and secures contemporaneous evidence for assessment. The Court reasoned that allowing reliance on other evidence after non-compliance would defeat the rule's object and weaken the safeguard against later fabrication. The dealer therefore could not avoid liability without following the prescribed declaration procedure, and the appeal failed.

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Issues: Whether rule 32(14) of the Kerala General Sales Tax Rules, 1963, requiring a dealer claiming that he is not the last purchaser to obtain and submit Form No. 25 declarations, is mandatory or directory.

Analysis: The charging scheme under section 5 of the Kerala General Sales Tax Act, 1963, read with entry 72 of the First Schedule, fastens tax liability on the last purchase of tapioca in the State. Rule 32(14) requires the dealer to obtain a declaration in Form No. 25 from the purchaser and to submit it within the prescribed time. The rule was framed to prevent evasion of tax and to ensure that the assessing authority receives contemporaneous material, reducing the risk of later fabrication of evidence. The Court found that the compliance burden was not onerous and that the object of the provision would be defeated if the dealer were allowed to rely on other evidence after failing to furnish the prescribed declaration.

Conclusion: Rule 32(14) is mandatory and not directory. The assessee could not avoid liability without complying with the prescribed declaration requirement, and the appeal failed.

Ratio Decidendi: Where a statutory filing and declaration requirement is enacted to prevent tax evasion and to secure contemporaneous proof for assessment, it is mandatory if its object would be frustrated by treating it as merely directory.

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