Wrong tax declaration in exemption form sustained liability under trade tax law despite concessional entitlement.

A dealer entitled only to concessional tax on refined furnace oil issued form IIIB stating that the purchases were totally exempt from tax, and that wrong declaration supplied the factual basis for applying section 3B of the U.P. Trade Tax Act, 1948. The Court held that the dealer was bound by its own representation and could not avoid liability by relying on mistake, the absence of a form field distinguishing full and partial exemption, or the selling dealer's tax position. Earlier authorities were distinguished on materially different facts. Section 3B was therefore correctly invoked, and the dealer remained liable for the differential tax.

---

---

Issues: Whether section 3B of the U.P. Trade Tax Act, 1948 was attracted where the dealer, though entitled only to concessional tax on purchase of refined furnace oil, issued form IIIB stating that the purchases were totally exempt from tax.

Analysis: The dealer was a recognition certificate holder and was admittedly entitled only to purchase refined furnace oil at a concessional rate. It nonetheless issued form IIIB declaring total exemption. The Court held that the wrong declaration in the form constituted an admitted factual basis for invoking section 3B. The contention that the selling dealer may have paid tax, or that the form did not contain a column to distinguish full exemption from partial exemption, was held to be irrelevant on the facts because the dealer was bound by its own representation and admission. The cited decisions were distinguished on the ground that they involved materially different factual situations.

Conclusion: Section 3B was correctly applied and the dealer remained liable for the differential tax.

Ratio Decidendi: A dealer who issues a declaration form claiming total exemption, when it is entitled only to concessional taxation, cannot avoid liability under section 3B on the basis of mistake, form design, or the tax position of the selling dealer.

---