JUDGMENT RAJES KUMAR, J. - These are three revisions under section 11 of the U.P. Sales Tax Act, 1948 ("the Act") is directed against the order of Tribunal dated August 8, 1995 relating to the assessment years 1984-85, 1987-88, 1988-89 respectively. The brief facts of the case are that the dealer - opposite party established a new unit for manufacturing of dal and was holding a eligibility certificate under section 4A of the Act. In view of eligibility certificate, dal manufactured by the dealer was exempted from tax. Dealer however, issued form III-C(2) and form III-C(5) to the purchasers of dal. Assessing authority initiated proceeding under section 3B on the ground that form III-C(2) and form III-C(5) were wrongly issued and on account of issuance of such forms, tax ceases to be leviable in the hands of purchasers and accordingly passed an order under section 3B and demanded tax which ceases to be leviable on account of issuance of forms III-C(2) and form III-C(5). First appeals filed by the dealer were rejected. Dealer filed second appeals before the Tribunal which have been allowed and the order passed under section 3B have been set aside. Heard counsel for the parties. Learned Standing Counsel submitted that the order of the Tribunal is erroneous, inasmuch as, dealer's sales of dal was exempted and declaration forms III-C(2) and III-C(5) were issued, in which, it was admitted that the tax had been paid and therefore, wrong declaration was furnished. He submitted that on account of issuance of forms III-C(2) and III-C(5), tax ceases to be leviable in the hands of the purchasers and therefore, tax had rightly been levied under section 3B. He submitted that the decisions on which, the Tribunal placed reliance is not applicable to the present case and they are the cases of purchase made for and on behalf of Ex. - U.P. principal as purchasing commission agency. In support of his contention, he relied upon the decision of this court in the case of Shyam Industries, Korakhpur v. Commissioner of Sales Tax reported in [1999] UPTC 1173. Sri V. K. Agarwal, learned counsel for the opposite party submitted that to the dealer the form III-C(2) and form III-C(5) were issued by the assessing authority and there was no bar that the dealer holding eligibility certificate under section 4A could not issue form III-C(2) and form III-C(5). Sri V. K. Agarwal, learned counsel for the opposite party submitted that to the dealer the form III-C(2) and form III-C(5) were issued by the assessing authority and there was no bar that the dealer holding eligibility certificate under section 4A could not issue form III-C(2) and form III-C(5). He further submitted that in the forms III-C(2) and III-C(5), dealer had declared that the turnover was exempted under section 4A, therefore, on the part of the dealer, declaration was neither false nor wrong and hence the proviso of section 3C does not apply. Forms have been issued by the assessing authority and necessary informations about the issuance of forms were also given to the assessing authority time to time. Having heard learned counsel for the parties I have perused the order of Tribunal and the authorities below. Section 3B reads as follows : "Section 3B. Liability on issuing false certificates, etc. - Notwithstanding anything to the contrary contained elsewhere in this Act and without prejudice to the provisions of sections 14 and 15A, a (person) who issues a false or wrong certificate or declaration, prescribed under any provision of this Act or the Rules framed thereunder, to another (person) by reason of which a tax leviable under this Act on the transaction of purchase or sale (made with or by) such other (person) ceases to be leviable or becomes leviable at a concessional rate, shall be liable to pay on such transaction an amount which would have been payable as tax on such transaction had such certificate or declaration not been issued. Provided that before taking any action under this section, the (person) concerned shall be given an opportunity of being heard. Explanation. - Where a (person) issuing a certificate or declaration discloses therein his intention to use goods purchased by him for such purpose as will make the tax not leviable or leviable at a concessional rate but uses the same for a purpose other than such purpose, the certificate or declaration shall, for purpose of this section, be deemed to be wrong." Corresponding rule 12B reads as follows : (1) The certificates or declarations referred to in sub-section (7) of section 3D shall be in forms III-C(1), III-C(2), III-C(3), III-C(4) and III-C(5). ... ... (7) In respect of the goods notified under clause (b) of sub-section (1) of section 3D, the certificate in : (a) Form III-C(1) shall be issued by the dealer, who makes the first purchase of the goods, to the dealer selling such goods; (b) Form III-C(2) shall be issued by the dealer who was the first purchaser of such goods, to his selling agent at the time of sending such goods to him for sale or to the subsequent purchaser at the time of making sale to him of such goods; (C) Form III-C(3) shall be issued by the dealer, who purchases the goods in the capacity of a purchasing agent, to the dealer on whose behalf the said goods were purchased; (d) Form III-C(4) shall be issued by the dealer, who sells the goods in the capacity of a selling agent, to the dealer on whose behalf the said goods are sold; (e) Form III-C(5) shall be issued, - (i) by the dealer, who had purchased the goods as a purchaser other than the first purchaser, to his selling agent or to the dealer to whom such goods are sent for sale or, as the case may be, are sold; or (ii) by the manufacturer of goods on which Central excise duty, both basic and additional, was leviable and has been paid, to his selling agent or the dealer to whom such goods are sent for sale or, as the case may be, are sold, or (iii) by any purchaser within Uttar Pradesh of goods referred to in sub-clause (ii) above to his selling agent or to the dealer to whom such goods are sent for sale or, as the case may be, are sold. In forms III-C(2) and III-C(5) following declarations are being given by the party who issued forms : ------------------------------------------------------------------------------------------------------- Form III-C(2) Form III-C(5) ------------------------------------------------------------------------------------------------------- U.P. No. ........................ U.P. No. ............. Relating to the year ............... Relating to the year .................... In forms III-C(2) and III-C(5) following declarations are being given by the party who issued forms : ------------------------------------------------------------------------------------------------------- Form III-C(2) Form III-C(5) ------------------------------------------------------------------------------------------------------- U.P. No. ........................ U.P. No. ............. Relating to the year ............... Relating to the year .................... ------------------------------------------------------------------------------------------------------- Form III-C(2) Form III-C(5) [See sub-rules (6)(b) and (7)(b) of [See sub-rules (7)(e) of rule 12B of U.P. rule 12B of U.P. Sales Tax Rules, Sales Tax Rules, 1948] 1948] (Certificate in respect of goods liable to (Certificate in respect of goods notified tax at the point of first purchase under under section 3D to be issued by section 3D or in respect of goods on which the purchaser/first purchaser thereof to Central excise duty, both basis and additional, his selling agent or to the subsequent has been paid, to be issued by and to purchaser, as the case may be). the dealers referred to in sub-rule (7)(e) of rule 12B). Signature of the Issuing Officer ...... Signature of the Issuing Officer ........... Seal of the issuing office ............ Seal of the issuing office .................. Date of issue ...................... Date of issue ............................ Name and address of the dealer to Name and address of the dealer to whom whom issued ..................... issued ................................ Number of registration certificate ..... Number of registration certificate ....... ....................................... ....................................... Date from which it is effective ....... Date from which it is effective ............ I.......... *Proprietor/partner/Karta I.......... *Proprietor/partner/Karta of of Hindu undivided family/Director/person Hindu undivided family/Director/person duly authorised under duly authorised under rule 77-A by M/s. .... rule 77-A by M/s. ........ (name and .... (name and full address) do hereby full address) do hereby certify that our certify that our said firm is registered under said firm is registered under section 8A section 8A of the U.P. Sales Tax Act, and its of the U.P. Sales Tax Act and its Registration Registration No. is ........ which is effective No. is ........ which is effective from ........ from ........ 2. I further certify that our said firm 2. I further certify that our firm has sold/sent has sold/sent for sale to M/s. ........ for sale to M/s. ................ (name (name and full address) ........ and full address) ........ (commodity) ...... (commodity) ............... (weight) ... (weight) for Rs. ...... for Rs. ........ (value) against *Bill/cash memo/challan No. ..... dated ... 3. I further certify that our said firm 2. I further certify that our firm has sold/sent has sold/sent for sale to M/s. ........ for sale to M/s. ................ (name (name and full address) ........ and full address) ........ (commodity) ...... (commodity) ............... (weight) ... (weight) for Rs. ...... for Rs. ........ (value) against *Bill/cash memo/challan No. ..... dated ... 3. I also certify that the aforesaid goods were - In respect of these goods, our said firm *(i) manufactured by us and have is/has been the purchaser/first purchaser borne Central excise duty, both basic and and accepts/has accepted liability additional; or to pay purchase tax. *(ii) received by us from our principals who have issued to us *form III-C(2)/III-C(5) Place ........ No. ........ dated ........ in respect thereof; or Date ........ *(iii) purchased by us and we have received *form III-C(2)/III-C(5) No. ..... Signature ......... dated ............. in respect thereof. *Proprietor/Partner/Karta/Director/Person duly authorised Place ......... under Rule 77A. Date ........ Signature *Proprietor/Partner/Karta/Director/Person duly authorised under Rule 77A. ------------------------------------------------------------------------------------------------------- * Strike off whichever is inapplicable. In form III-C(2) party who issues such form gives declaration that it's firm is the first purchaser and accepts liability to pay purchase tax. In form III-C(5) declaration is made that he has received form III-C(2)/III-C(5) from its principal or received form III-C(2) and III-C(5) from whom he has made purchases. In the present case being eligibility certificate holder under section 4A, dal was exempted from tax and therefore, there was no liability of tax on dal and hence, declaration made in the form III-C(2) that it was liable for purchase tax or admits liability of purchase tax was wrong. Further since dealer had not acted as agent for sale of dal and had not purchased Dal declaration in form III-C(5) was also wrong. In fact, form III-C(5) should not have been issued in respect of manufactured dal. In the circumstances, stated above, declaration made in forms III-C(2) and form III-C(5) both are false and wrong. On the basis of forms III-C(2) and III-C(5) tax ceases to be leviable on the purchases, therefore, both the conditions of section 3B were available in the present case and therefore, order passed under section 3B was justified. Similar question came up for consideration before this court in the case of Shyam Industries, Korakhpur v. Commissioner of Sales Tax [1999] UPTC 1173, this court held as follows : "4. Similar question came up for consideration before this court in the case of Shyam Industries, Korakhpur v. Commissioner of Sales Tax [1999] UPTC 1173, this court held as follows : "4. Learned counsel for the revisionist contended that by issue of the declaration in form III-C, no liability of the revisionist had ceased because there was no liability at all as it was holding an eligibility certificate. Learned counsel for the revisionist, however, conceded that by the issue of such declarations the liability of the dealer, who purchased the oil cake from the revisionist, to pay purchase tax under section 3D had ceased. The liability arises if by reason of declaration tax liability under the Act on the transaction of purchase of sale made with or by such other person ceases to levy or becomes leviable at a concessional rate. Therefore, the seizure of liability is not contemplated with reference to the buyer or the dealer but is with reference to the transaction. The transaction in question were of a sale and purchase. A sale by the revisionist is purchase by the other side and, therefore, there was a transaction of sale on the one side and purchase on the other the purchase was liable to tax and because of the declaration the purchase ceased to be taxable in the hands of the purchaser. The declarations were patently wrong because the dealer revisionist was a manufacturer and not a purchaser, therefore, the dealer to whom the goods were sold could not be a subsequent purchaser and form III-C(2) could not be issued in terms of rule 12B(7)(b) of the U.P. Sales Tax Act." For the reasons stated above, the order of the Tribunal is liable to be set aside. In the result, all the revisions are allowed. Order of Tribunal dated August 8, 1995 is set aside.