Concessional sales tax classification depends on the registration certificate; dealers cannot reclassify goods unilaterally.

A selling dealer cannot unilaterally reclassify oxygen gas as raw material for concessional sales tax where the purchasing dealer's registration certificate, issued under the Bihar Finance Act, 1981, places the goods in the taxable category at 3%. The prescribed authority alone can alter the classification through the statutory procedure under rule 6 of the Bihar Sales Tax Rules, 1983, and the certificate remains binding until formally modified. Because no reclassification was sought or made, the dealer had to apply the rate shown in annexure B, and a 2% levy based on its own interpretation was not sustainable.

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Issues: Whether the selling dealer could, on its own, treat oxygen gas as raw material and collect sales tax at 2% instead of 3% notwithstanding the registration certificate issued under section 13(1)(b) of the Bihar Finance Act, 1981 and without any modification by the prescribed authority.

Analysis: The registration certificate issued to the purchasing dealer specifically placed oxygen gas in annexure B as goods taxable at 3%, while annexure A contained the raw materials. The Court noted that the certificate remained unmodified and that neither the purchasing dealer nor the selling dealer had approached the prescribed authority for reclassification of oxygen gas as a raw material. Under section 13(1)(b) of the Bihar Finance Act, 1981 and the procedure under rule 6 of the Bihar Sales Tax Rules, 1983, the nature of the goods and the applicable concessional rate had to be determined by the prescribed authority, not unilaterally by the dealer. The selling dealer was therefore bound by the certificate as it stood and could not rely on its own interpretation of the notifications to alter the applicable rate.

Conclusion: The demand notices were valid and the claim to levy tax at 2% was not sustainable; the tax remained payable at 3% as shown in annexure B, against the assessee.

Final Conclusion: The writ petition failed because the dealers could not bypass the prescribed statutory mechanism for reclassification, and the tax demand based on the existing certificate was upheld.

Ratio Decidendi: A selling dealer cannot unilaterally reclassify goods covered by a registration certificate for concessional tax; unless the prescribed authority modifies the certificate, the rate and classification stated in the certificate remain binding.

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