R.K. Vijayvargiya, J.
1. By this reference under Section 44 of the Madhya Pradesh General Sales Tax Act, the Board of Revenue has referred the following question of law for the opinion of this Court:
In the facts and circumstances of the case, having regard to the provisions of Section 8, Sub-section (1), of the M. P. General Sales Tax Act, 1958, and Rule 20, Sub-rule (4), of the Rules made thereunder, as the sub-section and the sub-rule were during the relevant period, to be able to claim that he should be taxed at the concessional rate and not the full rate of sales tax, whether it was the responsibility of the selling dealer to satisfy himself that the goods sold to the purchasing dealer (from whom the selling dealer obtains a declaration) are mentioned in the registration certificate of the purchasing dealer as raw materials for manufacture, or whether the selling dealer is entitled to the concessional rate of tax once he has obtained the declaration from the purchasing dealer that the goods have been purchased for manufacture of other goods for sale in the State or in the course of inter-State trade or commerce ?
2. The facts giving rise to this reference, as set out in the statement of the case, are as follows :
The original assessment order was passed on 30th July, 1964. It was subsequently found that the assessee had submitted declarations in form XII-A for sale of oil-seeds worth Rs. 1,82,761 to two dealers in whose registration certificates oil-seeds were not entered as raw materials. The case was, therefore, reopened under Section 19[1) and instead of the concessional rate of 1 per cent on this transaction, the full rate of 2 per cent was charged. The first appeal preferred by the assessee was dismissed. The assessee preferred second appeal before the Board of Revenue, which was allowed and the reassessment order was set aside. The Board held that Clause (ii) of Rule 20, Sub-rule (4), clearly allow the concessional rate if the seller submits declarations in form XII-A. It was not for the selling dealer to satisfy himself that the sales to the purchasing dealer are mentioned in the registration certificate of the purchasing dealer as raw material for manufacture. At the instance of the department the Board of Revenue has referred the aforesaid question of law for the opinion of this Court.
3. The question involved in the present case is concluded by a Full Bench decision in this Court in Commissioner of Sales Tax, Madhya Pradesh v. Lattoobhai B. Paid & Co. Ltd. 1978 M.P.L.J. 806 (F.B.). In that case, it was held as follows :
The selling dealer will be entitled to the concessional rate only when he strictly complies with the provisions of law in that behalf. The language of Section 8(1), M.P. General Sales Tax Act, shows that the concessional rate is permissible only when the restrictions and conditions provided in Rule 20(4), M. P. General Sales Tax Rules, are strictly complied with. The selling dealer to claim concession must therefore not only obtain a declaration in form XII-A of the M. P. General Sales Tax Rules, but must satisfy himself that the goods in respect of which concessional rate is claimed are included in the purchasing dealer's certificate. If he merely obtains the declaration but the goods are not included in the purchasing dealer's certificate, he will not be entitled to the concessional rate.
In view of this decision, the question referred to us will be answered in favour of the department.
4. As a result of the discussion aforesaid, our answer to the question referred to us is that to be able to claim that he should be taxed at the concessional rate, it was the responsibility of the selling dealer to satisfy himself that the goods sold to the purchasing dealer (from whom the selling dealer obtains a certificate in form XII-A) are mentioned in the registration certificate of the purchasing dealer as raw material for manufacture. In the circumstances of the case, the parties shall bear their own costs of this reference.