Purchase tax on gold ornaments for conversion into bullion upheld where the transaction fell within the statutory definition of purchase.

Purchase tax may apply where old gold ornaments are acquired for conversion into bullion if the statutory definition of "purchase" extends to goods bought for manufacture of goods for sale. The Court treated conversion of one form of goods into another marketable form as potentially amounting to manufacture and found no patent illegality in the assessment order on the materials shown. It also noted that the existence of an alternative statutory remedy does not automatically bar writ jurisdiction, though it remains a relevant factor in discretion. The assessment was therefore left undisturbed and the challenge failed.

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Issues: Whether purchase tax was leviable on old gold ornaments purchased for conversion into bullion under section 2(ff) of the East Punjab General Sales Tax Act, 1948, and whether the availability of departmental remedies should preclude interference under Article 226 of the Constitution of India.

Analysis: The availability of an alternative statutory remedy does not by itself bar the exercise of writ jurisdiction, though it is ordinarily a relevant factor in the Court's discretion. On the merits, the definition of "purchase" in section 2(ff) is broadly framed and covers acquisition of goods for use in the manufacture of goods for sale. Conversion of old ornaments into bullion may involve a manufacturing process, and the assessee did not establish that the process in question was outside that description. The Court therefore found no such patent legal infirmity in the assessment order as would justify quashing it in writ proceedings.

Conclusion: The challenge to the levy failed. Purchase of old ornaments for conversion into bullion was not shown to be outside the statutory definition, and the assessment was upheld.

Final Conclusion: The petition was not entertained for relief on the merits and the impugned tax assessment remained undisturbed.

Ratio Decidendi: Where a statutory definition of purchase extends to acquisition of goods for manufacture of goods for sale, conversion of one form of goods into another marketable form may fall within that definition if the process can amount to manufacture.

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