Concessional sales tax concession survives later purchaser cancellation where pre-cancellation sales were genuine and procedural defects were non-fatal.

A declaration form supporting concessional sales tax could not be rejected for genuine sales made before the purchaser's registration was cancelled, because the later cancellation did not invalidate earlier transactions and the procedural defect of an undated form was treated as directory rather than fatal. Where the selling dealer substantially complied with the prescribed requirements and there was no material showing that the pre-cancellation sales were not genuine, the concession remained available for those sales. Sales made after cancellation were not covered, but the seven bills for sales between 23 January 1972 and 25 February 1972 qualified for the concessional rate and the assessment had to be modified accordingly.

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Issues: Whether the declaration form could be rejected in respect of sales made before cancellation of the purchasing dealer's registration certificate, and whether the selling dealer was entitled to concessional rate of tax for those pre-cancellation sales despite the form being undated and the registration cancellation being published later.

Analysis: The statutory scheme required the selling dealer to produce the prescribed declaration form and the relevant sale particulars for deduction under the concessional-rate provision. The procedural requirements in the declaration-form rules were treated as directory and not to be construed so rigidly as to penalise an innocent selling dealer who had no control over the purchaser's completion of the form. The later cancellation of the purchasing dealer's registration did not by itself invalidate sales already effected before the cancellation date. In the absence of any material showing that the earlier sales were not genuine, the undated form and delayed Gazette publication did not justify refusal of the concession for the seven bills relating to sales made before 3 March 1972. Sales after cancellation were not accepted.

Conclusion: The declaration form was not liable to be rejected in its entirety. The assessee was entitled to concessional rate of tax for the seven bills covering sales made from 23 January 1972 to 25 February 1972, and the assessment was required to be modified accordingly.

Ratio Decidendi: A declaration form supporting concessional sales tax cannot be rejected for genuine pre-cancellation sales merely because the purchasing dealer's registration was cancelled later or the form contained a non-fatal procedural defect, where the selling dealer has otherwise complied substantially with the prescribed requirements.

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