Rule 28B exemption is confined to sales tax on finished products; purchase tax remains recoverable from exempt units.

Relevant declaration forms may be produced before the Assessing Authority for fresh consideration of tax liability, and they are not barred merely because they were not examined earlier. An exemption under Rule 28B of the Haryana General Sales Tax Rules is confined to sales tax on finished products and does not extend to purchase tax. As purchase tax falls outside the notional sales tax exemption framework, it remains recoverable from an industrial unit enjoying exemption under Rule 28B. The appeal therefore succeeded only to the limited extent of permitting production of the STD-IV declaration and ST-14B forms, while the challenge to purchase tax recovery failed.

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Issues: (i) Whether the assessee could produce STD-IV declaration and ST-14B forms before the Assessing Authority and have them considered for determination of tax liability. (ii) Whether purchase tax was recoverable from an industrial unit enjoying exemption under Rule 28B of the Haryana General Sales Tax Rules, 1975.

Issue (i): Whether the assessee could produce STD-IV declaration and ST-14B forms before the Assessing Authority and have them considered for determination of tax liability.

Analysis: The issue was governed by the principle that relevant declaration forms may be produced before the Assessing Authority for reconsideration of the tax liability in accordance with law. The forms were not treated as barred merely because they had not been considered at the earlier stage, and the matter required fresh examination on the basis of the documents produced.

Conclusion: The assessee was entitled to produce the STD-IV declaration and ST-14B forms before the Assessing Authority.

Issue (ii): Whether purchase tax was recoverable from an industrial unit enjoying exemption under Rule 28B of the Haryana General Sales Tax Rules, 1975.

Analysis: Rule 28B granted exemption only from sales tax on the sale of finished products. The definition of exemption certificate and the concept of notional sales tax liability showed that the exemption was confined to tax on sales turnover of manufactured goods and did not extend to purchase tax. Since purchase tax was outside the notional sales tax liability framework, it remained recoverable from the exempted unit.

Conclusion: Purchase tax was recoverable from the assessee and the levy was upheld.

Final Conclusion: The appeal succeeded only to the limited extent of permitting production of declaration forms, while the challenge to recovery of purchase tax failed.

Ratio Decidendi: An exemption under Rule 28B is confined to sales tax on finished products and does not include purchase tax, while relevant declaration forms may be produced before the Assessing Authority for fresh consideration of liability.

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