Concessional trade tax relief upheld where form IIIB was furnished and the buyer held a valid recognition certificate.

A notification issued under section 4B of the U.P. Trade Tax Act, 1948 was treated as applying generally to the relief scheme under that provision, so the concessional rate was not confined only to dealers holding a recognition certificate. Where the sale of notified goods was made to a dealer with a valid recognition certificate and the prescribed declaration in form IIIB was furnished under rule 25B, the selling dealer was not denied concessional tax merely because he did not himself hold a recognition certificate. The omission of the proviso found in an earlier notification did not defeat the substantive benefit when the statutory and procedural requirements were met.

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Issues: Whether a dealer not holding a recognition certificate under section 4B(2) of the U.P. Trade Tax Act, 1948 is entitled to the concessional rate of tax under the notification dated 12 December 2003 on sale of notified goods to a dealer holding a valid recognition certificate, upon furnishing of form IIIB.

Analysis: Section 4B of the U.P. Trade Tax Act, 1948 grants special relief in different situations under clauses (a), (a1) and (b), each subject to conditions and restrictions notified by the State Government. The notification dated 12 December 2003 was issued under section 4B without limiting itself to any particular sub-clause, and was therefore treated as applying to the full range of relief contemplated by section 4B(1). The Court further held that the omission of the proviso found in the earlier notification did not alter the substantive benefit where the sale was made to a dealer holding a valid recognition certificate and the prescribed declaration in form IIIB was furnished as required by rule 25B of the U.P. Trade Tax Rules, 1948. The absence of a recognition certificate with the selling dealer did not, by itself, disentitle him from the concessional rate where the statutory and procedural requirements were otherwise satisfied.

Conclusion: The dealer not holding a recognition certificate was entitled to the concessional rate of tax on sale of notified goods to a dealer holding a valid recognition certificate, subject to furnishing form IIIB.

Final Conclusion: The revision succeeded, the Tribunal's view was rejected, and the assessee's entitlement to concessional tax treatment was affirmed.

Ratio Decidendi: Where a notification issued under section 4B of the U.P. Trade Tax Act, 1948 applies generally to section 4B relief and the prescribed declaration form is furnished, a selling dealer is not denied concessional tax merely because he does not himself hold a recognition certificate.

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