Manufacturing exemption limited to goods used in production, not materials for factory buildings or ancillary premises.

Building and plumbing materials used for constructing, fitting out, or repairing factory and ancillary premises were construed narrowly and were not treated as goods used in the manufacture of goods for sale under section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941. Materials merely supporting the premises in which manufacturing is carried on were distinguished from goods entering the manufacturing process itself, so the exemption did not apply. The registration certificate could also be amended to delete such items, because the statutory power to amend was available where the certificate no longer reflected the Act and Rules, and writ relief was not used to preserve an incorrect exemption.

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Issues: (i) whether building or plumbing materials and fixtures used for construction, fitting out or repair of factory buildings and allied premises are goods intended for use by a manufacturer in the manufacture of goods within section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941; (ii) whether the amendment of the registration certificate deleting such items was authorised under the Act and Rules.

Issue (i): whether building or plumbing materials and fixtures used for construction, fitting out or repair of factory buildings and allied premises are goods intended for use by a manufacturer in the manufacture of goods within section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941.

Analysis: The exemption under section 5(2)(a)(ii) was held to be confined to goods actually used in the manufacture of goods for sale. Goods required merely for constructing or maintaining factory buildings, staff quarters, godowns, warehouses, or other adjuncts were distinguished from goods that go into the manufacturing process itself. The expression was construed narrowly, so that materials used for buildings housing the manufacturing activity were not treated as part of the manufacturing process, although specially designed fixtures or materials directly used in the process itself were left open on facts not proved in the case.

Conclusion: No. Ordinary building or plumbing materials and fixtures for factory or ancillary buildings are not goods intended for use by the dealer in the manufacture of goods; the deletion of that exemption was justified.

Issue (ii): whether the amendment of the registration certificate deleting such items was authorised under the Act and Rules.

Analysis: The power to amend a registration certificate was held to flow from section 7(4), which permits amendment on information furnished or otherwise received. Delegation of that power under section 15 and rule 71 was accepted. The Court also held that section 20(3) provided an alternative revisional remedy, and that the writ court should not perpetuate an exemption not warranted by the statute merely because it had been granted earlier.

Conclusion: Yes. The amendment was within the statutory power and was not liable to be struck down in writ proceedings.

Final Conclusion: The petition failed because the disputed items were not covered by the manufacturing exemption and the registration certificate could validly be amended to conform to the correct statutory construction.

Ratio Decidendi: Goods used merely in constructing or maintaining the premises in which manufacture is carried on are not, without more, goods used in the manufacture of goods for sale; the registration certificate may be amended when it no longer reflects the statute.

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