Objective enquiry under Section 6-A required before rejecting exemption claim based on form F declarations.

Section 6-A of the Central Sales Tax Act places the burden on the dealer to prove that the movement of goods was otherwise than by sale, and after the 2002 amendment the prescribed declaration is required for that claim. When form F declarations and supporting materials are produced, the assessing authority must conduct an objective enquiry, verify the truth of the particulars, and decide the claim fairly on the materials placed before it. A mechanical rejection based on an inflexible reading of earlier authority is impermissible. The assessment order was therefore held unsustainable, quashed, and the matter remitted for fresh consideration after hearing the dealer.

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Issues: Whether the assessment order under the Central Sales Tax Act could be sustained when the assessing authority refused exemption under section 6-A without objectively considering the declarations in form F and the supporting materials produced by the dealer.

Analysis: Section 6-A of the Central Sales Tax Act places the burden on the dealer to establish that the movement of goods was occasioned otherwise than by sale, and after the 2002 amendment the prescribed declaration became necessary for that claim. Where such declaration is furnished, the assessing authority must hold an enquiry, examine whether the particulars are true, and decide the issue fairly and reasonably on the basis of the materials placed before it. The authority cannot reject the claim merely by treating one earlier decision as laying down an absolute rule that the absence of certain prescribed documents necessarily defeats the claim in every case. The assessment order showed that the authority failed to consider all the relevant materials and did not make the required objective assessment of the evidence.

Conclusion: The impugned assessment order was unsustainable and was quashed. The matter was remitted for fresh consideration in accordance with law after giving the petitioner an opportunity of hearing.

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