Form XVII concessional tax: liability for misuse of declared goods rests on the purchasing dealer, not the seller.

Concessional tax under Form XVII for specified sales of pulpwood is available only when the purchasing dealer uses the goods for the declared purpose. Under Section 3(3) of the Tamil Nadu General Sales Tax Act, 1959, read with its second proviso, any differential tax arising from misuse of the declaration is recoverable from the purchaser. The scheme, together with the penalty provisions in Section 23 and Section 45(2)(e), places responsibility for breach of the declaration conditions on the buying dealer. The selling dealer is not liable for tax merely because the purchaser later misuses the goods.

---

---

Issues: Whether, on the facts, the assessee was entitled to the benefit of concessional tax under Form XVII in respect of pulpwood and whether any tax consequence for misuse of the declaration could be fastened on the selling dealer.

Analysis: Section 3(3) of the Tamil Nadu General Sales Tax Act, 1959, read with its second proviso, allows concessional tax on specified sales against Form XVII and provides that if the purchasing dealer fails to use the goods for the declared purpose, the differential tax is recoverable from the purchaser. The statutory scheme, read with the penalty provisions in Section 23 and Section 45(2)(e), makes the purchaser responsible for any breach of the declaration conditions. The selling dealer is not visited with tax liability for the purchaser's subsequent misuse of the goods.

Conclusion: The liability for any contravention of Form XVII conditions rests on the purchasing dealer, not the seller, and the revision was not entertainable.

---