Concessional tax on prescribed declaration protects the selling dealer unless collusion or deliberate acceptance of a false certificate is shown.

Concessional tax under section 3-G of the U.P. Trade Tax Act applies when the prescribed declaration in form III-D is furnished and bona fide accepted by the selling dealer. The proviso excluding goods purchased for resale or for use in manufacture or packing did not justify denying the concession on these facts. If the declaration is false, liability shifts to the purchasing dealer under section 3-B unless collusion between the buying and selling dealers is shown. As no collusion or deliberate acceptance of a false certificate was established, the selling dealer remained protected and was not liable to assessment at the normal rate.

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Issues: Whether the selling dealer could be denied concessional tax merely because the purchasing corporation had issued the prescribed declaration in form III-D, and whether liability for any false declaration lay on the purchasing dealer rather than the selling dealer.

Analysis: Section 3-G of the U.P. Trade Tax Act grants concessional tax where the dealer furnishes the prescribed certificate from the department, corporation, undertaking or company. The proviso in section 3-G(2) excludes purchases for resale or for use in manufacture or packing of goods. The Court noted that the declaration in form III-D had been furnished by the U.P. State Sugar Corporation and accepted by the selling dealer. It further held that, if the declaration was false, the liability would shift to the purchasing dealer under section 3-B unless collusion between the selling and purchasing dealer was shown. No such collusion or deliberate acceptance of a false certificate was established.

Conclusion: The selling dealer was entitled to concessional tax and could not be subjected to the normal rate on the facts found.

Ratio Decidendi: Where the prescribed declaration for concessional purchase is furnished and bona fide accepted, the selling dealer is protected from normal-rate assessment, and any liability arising from a false declaration falls on the purchasing dealer absent collusion.

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