https://www.taxtmi.com/caselaws?id=424633 The HC held that the selling dealer's entitlement to concessional tax rate under Entry 81 of Schedule C of the OST Act is not affected by the subsequent change in use of goods by the purchasing registered dealer. Since the purchasing dealer declared the intended use in Form IV, any deviation from that use does not impose liability on the selling dealer. The Department cannot transfer the liability for differential tax to the selling dealer; it must proceed against the purchasing dealer if misuse is found. Consequently, the sale against the declaration form qualifies for the concessional 4% tax rate. The petition was allowed, ruling in favor of the assessee and against the Department. en-us Tue, 05 Jul 2022 00:00:00 +0530 Fri, 08 Aug 2025 12:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424633 The HC held that the selling dealer's entitlement to concessional tax rate under Entry 81 of Schedule C of the OST Act is not affected by the subsequent change in use of goods by the purchasing registered dealer. Since the purchasing dealer declared the intended use in Form IV, any deviation from that use does not impose liability on the selling dealer. The Department cannot transfer the liability for differential tax to the selling dealer; it must proceed against the purchasing dealer if misuse is found. Consequently, the sale against the declaration form qualifies for the concessional 4% tax rate. The petition was allowed, ruling in favor of the assessee and against the Department. Case-Laws VAT / Sales Tax Tue, 05 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424633