TMI Blog1967 (10) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, tubes, rollers, wheels, etc. The assessee claimed the benefit of section 3(3), which provides for a concessional rate of one per cent. He produced a declaration in Form XVII, which has been prescribed in terms of the proviso to sub-section (3) of section 3. There is no dispute as to the factum or truth of the certificate of this declaration. The assessing authority disallowed the claim on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereto. It propounded the question for its consideration as whether the goods sold by the dealer as such had been used as component parts as contemplated in section 3(3). It went further and, on investigation, found that the goods supplied by the assessee underwent physical changes such as drilling of holes, sizing of thickness, etc. This approach, again, exhibits a misdirection on the part of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he First Schedule. It was only on that basis he charged three per cent. There is no dispute about the second requisite being satisfied; for the purchaser is undoubtedly a dealer. The misapprehension of the department is particularly in respect of the third requisite. The assessee satisfies the requisite, if he complies with the proviso, and he is not called upon, beyond production of a declaration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haser will make a false declaration or a declaration which he does not comply with he would do so under peril of meeting those penalties. But on that account, the selling dealer is not deprived of the concessional rate. The physical changes which the Board mentioned do not appear to us to bring about any substantial change to the fact that the goods sold will fall within the First Schedule and are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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