Concessional tax rate counts as "full rate" where special statutory provisions override general tax incidence.

Goods bought against S.T. 17 and S.T. 17A declaration forms could be resold to other manufacturers against similar forms under the statutory scheme, because sections 5C and 5CC operated with overriding effect when their conditions were met and the 13 February 1976 notification, read with rule 15, shifted the tax incidence to the subsequent dealer. The expression "full rate" in the notification was understood as the rate prescribed by law or valid delegated authority, so the concessional rate under sections 5C and 5CC satisfied that requirement. On that construction, the assessee's sales to manufacturers were in accordance with law and the revisional challenge failed.

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Issues: (i) Whether goods purchased against declaration forms S.T. 17 and S.T. 17A could be resold to other manufacturers against similar declaration forms so as to avoid tax. (ii) Whether the expression "full rate" in the notification included the concessional rate under sections 5C and 5CC of the Act.

Issue (i): Whether goods purchased against declaration forms S.T. 17 and S.T. 17A could be resold to other manufacturers against similar declaration forms so as to avoid tax.

Analysis: The special rate provisions for manufacturers under sections 5C and 5CC operated with overriding effect when the statutory conditions were fulfilled. The notification dated 13 February 1976, read with rule 15, shifted the point of tax from the hands of the manufacturer to the subsequent dealer, and there was no contrary notification fixing tax at a later point. In that statutory setting, sales by the assessee to manufacturers remained within the permitted framework.

Conclusion: The resale was legally permissible and did not attract interference.

Issue (ii): Whether the expression "full rate" in the notification included the concessional rate under sections 5C and 5CC of the Act.

Analysis: The expression "full rate" was treated as the rate of tax as prescribed by the Legislature or by valid delegated authority. The concessional rate under sections 5C and 5CC, being the applicable statutory rate for the class of manufacturers covered by those provisions, satisfied the requirement of full rate under the notification. The provisions under sections 5C and 5CC prevailed over the general incidence of tax under the notification.

Conclusion: The concessional rate was included within "full rate" for the purposes of the notification.

Final Conclusion: The assessee's sales to manufacturers were in accordance with law and the revisional challenge failed.

Ratio Decidendi: Where a special taxing provision prescribing a concessional statutory rate applies to the class of dealers concerned, that rate constitutes the applicable full rate for purposes of a notification, and the special provision prevails over the general tax incidence.

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