Mandatory proof for entry tax exemption requires strict compliance with prescribed declaration form and purchase documents.

Rule 6 of the Bihar Entry Tax Rules requires a dealer claiming exemption to produce purchase documents and Form ET-IX from the selling dealer as proof that entry tax was already paid at the first point of entry. The rule is consistent with the parent Act and serves as the recognised, exclusive procedural safeguard against fraud, collusion, and uncertainty in exemption claims. Because the exemption is conditional on strict compliance with this prescribed mode of proof, failure to furnish Form ET-IX justifies rejection of the exemption claim.

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Issues: Whether rule 6 of the Bihar Tax on Entry of Goods into Local Areas Rules, 1993, requiring a dealer claiming exemption from entry tax to produce purchase documents and a complete declaration in form ET-IX received from the selling dealer, is mandatory or directory.

Analysis: The levy under the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1993 attaches only at the first point of entry of scheduled goods into a local area. The scheme of the Act, read with the notification issued under section 3 and the rule-making power under section 9, shows that a subsequent dealer claiming exemption must establish that entry tax has already been paid by the first importing dealer. Rule 6 prescribes the recognised mode of proof for that purpose by requiring bills, invoices or cash memos and the declaration in form ET-IX. The requirement is not inconsistent with the Act; rather, it is designed to prevent fraud and collusion, to ensure uniform proof, and to avoid uncertainty and unnecessary litigation in assessment matters. The rule therefore operates as the exclusive procedural safeguard for proving exemption.

Conclusion: The requirement of filing form ET-IX is mandatory and not merely directory; failure to produce it justifies rejection of the exemption claim.

Ratio Decidendi: Where a fiscal exemption is made conditional upon production of a prescribed declaration form as the recognised mode of proof, and the requirement is consistent with the parent Act, the condition must be strictly complied with and cannot be treated as directory.

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