Form T declaration under sales tax law did not require own-manufacture ownership; third-party manufacture satisfied the condition.

The declaration in form T under the Bombay Sales Tax Act, 1959 required the goods to be used in manufacturing cotton fabrics for sale, but not that the manufacture be for the purchaser's own ownership. Applying earlier interpretations of the same language, manufacture for third parties also satisfied the condition. The purchasing dealer therefore did not contravene the declaration, and no liability to tax arose on the alleged breach. Because no breach existed, the reference question on contravention became academic and was not answered.

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Issues: Whether the purchasing dealer had contravened the declaration in form T and thereby became liable to tax under section 41(2) of the Bombay Sales Tax Act, 1959.

Analysis: The condition in the relevant notification and form T required the goods to be used in the manufacture of cotton fabrics for sale, and did not require that the manufacture must be for the purchasing dealer's own ownership. On the same language in earlier decisions, goods manufactured for others also satisfied the condition. The respondents therefore had not breached the declaration form, and the basis for taxing them on alleged contravention was unsustainable. As no breach existed, the reference question framed on the supposed violation did not arise and had become purely academic.

Conclusion: The respondents were not in breach of the declaration in form T, and no assessment to tax on that basis could arise. The reference was not answered as the question was academic.

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