Processing activity supports concessional diesel purchase where authorities concur on the assessee's use for road development work.

Concurrent factual findings that the assessee's activity of mixing rody, concrete and cement constituted processing brought the purchase of high speed diesel within the concessional treatment under section 10(3) of the Rajasthan Sales Tax Act. Because the lower authorities and the assessing authority treated the diesel as used for processing in road development work, the declaration form was held validly issued and the assessee remained entitled to purchase diesel at the concessional rate.

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Issues: Whether the respondent-assessee was entitled to purchase high speed diesel at the concessional rate under section 10(3) of the Rajasthan Sales Tax Act on the footing that its activity of mixing rody, concrete and cement amounted to processing.

Analysis: The lower appellate authorities had found that the assessee was engaged in processing for the purposes of road development work, and on that basis held that the declaration form was validly issued for purchase of diesel at the concessional rate. The record also showed that the assessing authority itself treated the diesel as having been purchased for processing of rody, concrete and cement. In view of these concurrent findings, the assessee fell within the benefit contemplated by section 10(3).

Conclusion: The respondent-assessee was entitled to the concessional rate of tax and to issue declaration form 17 for purchase of high speed diesel.

Final Conclusion: The revision failed because the concurrent factual findings and the statutory benefit under section 10(3) sustained the assessee's entitlement to concessional tax treatment.

Ratio Decidendi: Where the authorities concurrently find that an assessee's activity constitutes processing, the concessional purchase rate available under the sales tax provision governing processing applies.

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