Statutory deduction through declaration form requires cooperation from authorities and liquidator when the purchaser is under liquidation.

A statutory deduction under the Punjab General Sales Tax regime depended on completion of Form ST XXII under Rule 26, and the seller could not be denied the benefit solely because the prescribed declaration had not been furnished. Where the purchasing dealer was under liquidation, the liquidator had to perform the purchaser's statutory role in relation to the form, and the assessing authority and other concerned parties were required to facilitate its execution. The Court held that the authorities had to cooperate to complete the statutory formality so the deduction claim could be reconsidered, and the assessment could be reviewed afresh in accordance with the declaration-form mechanism.

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Issues: Whether the appellant was entitled to directions requiring the assessing authority, the State, the purchaser corporation, and its liquidator to facilitate issuance and execution of Form ST XXII so that the appellant could claim deduction under the sales tax provisions.

Analysis: The deduction claimed by the selling dealer was recognised as one available under the relevant provision of the Punjab General Sales Tax Act, 1948. Rule 26 of the Punjab General Sales Tax Rules, 1949 prescribed the method for obtaining and furnishing Form ST XXII, and the form had to be obtained from the assessing authority, filled, and signed by the purchasing dealer or its agent. Since the purchaser was under liquidation, the liquidator was required to discharge the purchaser's statutory role in relation to the declaration forms. The legal responsibility lay on both sides to facilitate compliance so that the tax liability could be shifted in accordance with law, after which the appellant could seek review of the assessment orders that had been passed for want of the form.

Conclusion: The appellant was entitled to the requested directions, and the authorities concerned were bound to facilitate completion of the statutory formality so that the deduction claim could be reconsidered.

Final Conclusion: The appeal succeeded, the High Court order was set aside, and the matter was directed to be processed afresh in accordance with the statutory mechanism for declaration forms.

Ratio Decidendi: Where a statutory deduction depends on a declaration form, and the purchaser is under liquidation, the authorities and liquidator must cooperate to complete the prescribed formality so that the seller is not deprived of the deduction solely for want of procedural compliance beyond its control.

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