Concessional sales tax depends on a valid, fully completed declaration form; incomplete Form-XVII could not secure the lower rate.

Concessional sales tax under Section 3(3) is available only when the selling dealer produces a valid, duly completed declaration in the prescribed form. Where Form-XVII left the column for the goods to be manufactured and the First Schedule reference blank, and the ultimate product was not shown to be a First Schedule item, the form did not satisfy the statutory requirements. The seller could not rely on authorities protecting a dealer from a purchaser's misuse of a valid declaration because the declaration itself was invalid and incomplete. The concessional rate was therefore unavailable and the higher rate of tax was sustained.

---

---

Issues: Whether the assessee was entitled to the concessional rate of tax under Section 3(3) on the strength of Form-XVII, and whether the higher rate of tax could be sustained when the declaration form was found to be invalid and incomplete.

Analysis: The concessional rate under Section 3(3) is available only when the selling dealer produces a duly filled-in declaration in the prescribed form and the form satisfies the statutory requirements. The burden on the seller ends with production of a valid form; however, that principle applies only where the declaration conforms to the prescribed format. In the present case, the relevant column regarding the description of the goods to be manufactured and the First Schedule reference was left unfilled, and the ultimate product was not shown to be a First Schedule item. The declaration was therefore not a valid Form-XVII, and the decisions protecting a seller from the purchaser's misuse of a valid declaration had no application.

Conclusion: The assessee was not entitled to the concessional rate of tax, and the higher rate of tax was correctly sustained. The issue was decided against the assessee and in favour of the Revenue.

Ratio Decidendi: The concessional sales tax benefit under Section 3(3) is available only on production of a valid, duly completed prescribed declaration form; an incomplete or statutorily non-conforming form cannot confer the concessional rate on the selling dealer.

---