Form IXC was held directory, so deduction from special sales tax could not be denied without that form.

Form IXC was treated as an evidentiary requirement, not a mandatory condition, for claiming deduction or exemption from special sales tax on goods already taxed at the earlier point. The Bihar Sales Tax Act scheme contemplated single-point taxation, and the notification with Rule 8(2) required proof that the goods had already suffered tax, but a rigid insistence on Form IXC would conflict with that scheme and risk double taxation. The dealer still had to establish that the goods were purchased from a registered dealer liable to tax, yet non-production of the form alone could not defeat the claim if that fact was otherwise proved. The claim was therefore accepted in favour of the assessee.

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Issues: Whether production of declaration in Form IXC was mandatory for claiming deduction/exemption from special sales tax on goods already subjected to tax at the earlier point.

Analysis: The statutory scheme of the Bihar Sales Tax Act, 1959 contemplated levy of special sales tax only at one point in the series of sales. Section 5 fixed the taxable point, while the notification issued under its proviso and Rule 8(2) of the Bihar Sales Tax Rules, 1959 required documentary proof, including Form IXC, for proving that the goods had already suffered tax. Those conditions were treated as evidentiary and directory, because a mandatory reading would conflict with the single-point scheme of taxation and could expose the same goods to tax at more than one stage. The dealer was still required to satisfy the assessing authority that the goods had in fact been purchased from a registered dealer liable to tax, but non-production of Form IXC by itself could not defeat the claim if the fact was otherwise established.

Conclusion: The requirement of Form IXC was not mandatory. The claim for deduction could not be rejected merely for want of that form, and the answer was against the department and in favour of the assessee.

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