JUDGMENT : K. M. AGARWAL, J. This reference under section 13 of the M. P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976, i. e. , the Entry Tax Act, read with section 44 (1) of the M. P. General Sales Tax Act, 1958 (for short "the Act"), at the instance of the assessee requiring answer to the following question of law referred to this Court by the Tribunal : " Whether, under the facts and circumstances of the case, the applicant was not liable to pay tax on entry of coal as per clause (iii) of first proviso to sub-section (1) of section 3 of the Entry Tax Act when he had already paid 3 per cent tax and 1/2 per cent additional tax and whether his case was covered by clause (c) of section 5-B of the M. P. General Sales Tax Act, 1958, or clause (b) of section 5-B of that Act ?" 2. The dispute relates to assessment period April 1, 1978 to March 31, 1979 and April 1, 1979 to March 31, 1980. The assessee, M/s. Cement Corporation of India Limited, Mandhar Cement Factory, Mandhar, claimed exemption from payment of entry tax under clause (iii) of the first proviso to section 3 (1) of the Entry Tax Act in respect of coal imported by it during the said periods as raw material used in the manufacture of cement. The claim for exemption was rejected by the assessing authority, as also by the appellate authorities on the ground that for an exemption under clause (iii) of the first proviso to section 3 (1) of the Entry Tax Act, it was necessary that the particular transaction was liable to additional tax, but the coal in the present case was included under the declared goods and was liable to a tax at the rate of 4 per cent and, therefore, by virtue of clause (b) of section 5-B of the Act, it would be deemed to have not been subjected to additional tax. The assessee claimed that under section 6 (2) of the Act, concessional rate of tax was payable in case of purchase of raw materials used for manufacture of goods and that accordingly, it had paid tax on coal at the rate of 3 per cent basic and 1/2 per cent additional tax and, therefore, it was entitled to exemption by virtue of section 5-B (c) of the Act. 3. After hearing the learned counsel for the assessee and the learned Deputy Advocate-General for the department, we are of the view that the said question of law deserves to be answered in favour of the assessee and against the department. Clause (iii) of the first proviso to section 3 (1) of the Entry Tax Act, at the relevant time, provided as follows : " Provided that no tax under this sub-section shall be levied : (i ). . . . . . . . . . . . . (ii ). . . . . . . . . . . . (iii) in respect of goods specified in Schedule II or III if the entry of goods is caused by the purchase of such goods and such purchase transaction or the counter-part sale transaction is liable to additional tax. " It is not disputed that the coal was an item of declared goods and that the assessee had caused the entry of coal into a local area and used it as raw material for the manufacture of cement after payment of tax on it at the rate of 3. 5 per cent in accordance with the provisions of section 6 (2), read with section 8 (1) (a) of the Act, though the general rate of tax on coal was 4 per cent. Clause (c) of section 5-B of the Act provided that, " (c) Where declared goods have been subjected to tax at a rate less than 4 per cent, it shall be deemed that such goods have been subjected to additional tax. " As in the present case, the coal imported by the assessee was subjected to tax at a rate less than 4 per cent, it must be deemed to have been subjected to additional tax by virtue of clause (c) of section 5-B of the Act. " As in the present case, the coal imported by the assessee was subjected to tax at a rate less than 4 per cent, it must be deemed to have been subjected to additional tax by virtue of clause (c) of section 5-B of the Act. Accordingly, it must be held that the assessee was entitled to exemption from payment of entry tax under clause (iii) of first proviso to section 3 (1) of the Entry Tax Act. 4. The Tribunal was apparently wrong in applying the provisions of clause (b) of section 5-B of the Act, because the coal imported by the assessee was not subjected to tax at the rate of 4 per cent and further because clause (b) of section 5-B of the Act did not speak about the general rate of tax in respect of the declared goods, but spoke of declared goods subjected to tax at the rate of 4 per cent. 5. In the result, we answer the question referred to us as follows : Under the facts and circumstances of the case, the assessee was not liable to pay tax on entry of coal as per clause (iii) of first proviso to sub-section (1) of section 3 of the Entry Tax Act, because it had paid 3 per cent tax and 1/2 per cent additional tax and because its case was covered by clause (c), and not by clause (b) of section 5-B of the Act. 6. In the circumstance of the case, we make no order as to costs of this reference. Reference answered accordingly. .