Second-sale exemption requires strict proof and mandatory compliance, so writ interference was refused after adverse factual findings.

A dealer claiming second-sale exemption under the Kerala General Sales Tax regime must prove entitlement in the manner prescribed by the statute and rules, including compliance with the mandatory certificate requirement under Rule 32(13). Where enquiry and cross-examination showed that the alleged purchases from unregistered dealers and the supporting documents were not reliable, and the revisional authority recorded no procedural infirmity or other vitiating circumstance, interference in writ jurisdiction was not warranted. The penalty orders were therefore sustained and the writ petition dismissed.

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Issues: Whether the penalty orders under the Kerala General Sales Tax regime, imposed on the premise that the petitioner had failed to prove entitlement to second-sale exemption, called for interference in writ jurisdiction.

Analysis: The material on record showed that the petitioner's claim of purchases from unregistered dealers was not found reliable on enquiry and cross-examination. The revisional authority had examined both procedural compliance and the merits, and recorded findings that the alleged suppliers and purchase documents were not trustworthy. The decision also applied the principle that a dealer claiming exemption as a second sale must satisfy the statutory burden of proof, and that compliance with the prescribed certificate requirement under Rule 32(13) was mandatory. In the absence of any procedural infirmity or other vitiating circumstance, no ground for interference under Article 226 was made out.

Conclusion: The penalty orders were upheld and the writ petition was dismissed.

Final Conclusion: The petitioner failed to establish a valid claim to second-sale exemption, and the findings of fact and procedure recorded by the authorities were left undisturbed in writ jurisdiction.

Ratio Decidendi: A dealer seeking exemption from sales tax on the footing of a second sale bears the burden of proving entitlement in the manner prescribed by the statute and rules, and writ interference will not follow where the authorities' factual findings are supported by proper enquiry and no procedural illegality is shown.

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