Non-production of Form C/D cannot by itself deny eligibility-certificate set-off where statutory ceilings are satisfied.

Non-production of Form C/D may disentitle a dealer from the reduced Central Sales Tax rate, but it does not by itself make the inter-State sale void or bar set-off under an eligibility certificate. The rate benefit and the exemption or eligibility-limit mechanism operate in different fields, so a higher tax rate caused by missing forms cannot justify denial of set-off where the statutory ceiling and other conditions are satisfied. Assessment orders were therefore to be corrected to allow the set-off earlier refused solely because the reduced-rate benefit was unavailable.

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Issues: Whether the higher rate of tax payable because of non-production of Form C/D could be denied as a set-off against the limit available under the eligibility certificate.

Analysis: The petition turned on the legal effect of non-production of Form C/D after the statutory amendment to the Central Sales Tax regime. The Court followed the earlier decision holding that the rate of tax and the tax-benefit limit under the eligibility certificate operate in different fields. Non-production of Form C/D may disentitle the dealer from the reduced rate of tax, but it does not make the inter-State transaction illegal or void, nor does it justify denial of the corresponding set-off from the exemption or eligibility limit, subject to the ceiling fixed for the year or period.

Conclusion: The denial of set-off on the ground of higher rate of tax was unjustified, and the petitioner was entitled to have the assessment modified accordingly.

Final Conclusion: The assessment orders were to be corrected so that the petitioner received the set-off earlier refused only because the reduced rate benefit was not available for want of Form C/D.

Ratio Decidendi: Denial of the reduced rate of tax for non-production of Form C/D does not, by itself, authorize denial of set-off under an eligibility certificate where the statutory ceiling and other conditions are satisfied.

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