Concessional tax on admitted inter-State sale cannot be denied merely for non-issuance of Form-C when seller is not at fault.

An admitted inter-State sale could not be denied concessional tax treatment merely because Form-C was not issued, where the omission was not attributable to the selling dealer and the transaction was otherwise established by admitted departmental materials. The Court treated Form-C as a facilitative declaration for availing the concessional rate and held that procedural failure by the purchasing dealer's side could not defeat the substantive benefit. On those facts, the assessee was held entitled to tax at 2% on the transaction, and the revenue was directed to give effect accordingly.

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Issues: Whether the assessee was entitled to concessional rate of tax at 2% on an admitted inter-State sale transaction despite non-issuance of Form-C declaration and the inability of the High Court to issue a direct command to the jurisdictional assessing officer outside its territorial jurisdiction.

Analysis: The transaction with the purchasing dealer was admitted by the revenue to be an inter-State sale. The denial of Form-C arose because the purchasing dealer had not applied for issuance of Form-C before its jurisdictional assessing officer, and the assessee was not at fault for that omission. The Court treated Form-C as a facilitative document for availing concessional tax and noted that where the underlying sale is otherwise established, the benefit cannot be denied merely because the declaration was not issued for reasons not attributable to the selling dealer. Exercising writ jurisdiction under Article 226, the Court relied on the admitted facts, contemporaneous departmental communication, and the need to do substantial justice.

Conclusion: The assessee was held entitled to concessional rate of tax at 2% on the subject transaction, and the revenue was directed to act accordingly.

Ratio Decidendi: Where an inter-State sale is admitted and the selling dealer is not responsible for the failure to obtain Form-C, the concessional rate of tax cannot be denied merely on that procedural lapse if the transaction is otherwise established by admitted materials.

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