Rule 28B exemption does not cover purchase tax, though additional forms may be produced for fresh assessment.

An assessee was permitted to produce STD-IV declaration and ST-14B forms before the Assessing Authority at the appellate stage, with the liability to be re-examined afresh in accordance with law. The Court also held that exemption under Rule 28B from tax on finished products did not extend to purchase tax, because the rule operated only against sales tax on manufactured goods and not against purchase tax. The assessee therefore obtained limited relief on document production, but purchase tax remained recoverable and the Tribunal's view on that issue was upheld.

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Issues: (i) Whether the assessee could produce STD-IV declaration and ST-14B forms before the Assessing Authority at the appellate stage. (ii) Whether purchase tax was recoverable from the assessee under Rule 28B despite the grant of exemption from tax on finished products.

Issue (i): Whether the assessee could produce STD-IV declaration and ST-14B forms before the Assessing Authority at the appellate stage.

Analysis: The issue was covered by an earlier decision of the Court permitting production of tax documents and forms before the Assessing Authority for fresh determination of liability. The same approach was applied here, with the forms to be examined by the Assessing Authority and the tax liability determined afresh in accordance with law.

Conclusion: The assessee was entitled to produce the forms before the Assessing Authority, and the matter was to be reconsidered accordingly.

Issue (ii): Whether purchase tax was recoverable from the assessee under Rule 28B despite the grant of exemption from tax on finished products.

Analysis: Rule 28B(3)(j) granted exemption from payment of sales tax on sale of finished products, not exemption from purchase tax. The scheme of Rule 28B, including the definition of notional sales tax liability and the provisions governing computation of the exemption limit, showed that the exemption operated only on sales tax payable on manufactured goods. Purchase tax did not form part of the exempted liability and remained recoverable from the beneficiary unit.

Conclusion: Purchase tax was recoverable from the assessee, and the Tribunal's view on this point was upheld.

Final Conclusion: The appeals succeeded only on the question of production of declaration forms and failed on the purchase tax issue, leaving the assessee entitled to limited relief but not to exemption from purchase tax.

Ratio Decidendi: An exemption under Rule 28B from payment of sales tax on finished products does not extend to purchase tax, and additional documentary evidence may be permitted before the Assessing Authority for fresh assessment in accordance with law.

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