1990 (7) TMI 357 - AT - VAT and Sales Tax

Tribunal: 'Consumable stores' include leather boots; Assessee entitled to tax exemption

The Tribunal held that the expression 'consumable stores' in the registration certificates covered the leather boots sold by the assessee to purchasing ... - Issues:1. Interpretation of the expression 'consumable stores' in registration certificates.2. Eligibility for exemption under section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941 for sales of leather boots.Analysis:1. The case involved the interpretation of the expression 'consumable stores' in the registration certificates of purchasing dealers, specifically regarding whether it covers 'leather boots.' The assessee, a registered dealer, claimed deductions under section 5(2)(a)(ii) for sales of leather boots to certain purchasing dealers. The assessing authority disallowed the claim, leading to a series of appeals and revisions. Ultimately, the Tribunal held that the goods in question were covered by the registration certificates of the purchasing dealers, and therefore, the sales were entitled to the exemption claimed.2. The main issue was whether the leather boots sold by the assessee to the purchasing dealers were intended for use by them in the manufacture of goods in West Bengal for sale, as required by section 5(2)(a)(ii) of the Act. The Revenue contended that there was no evidence to support this claim and that the Tribunal's finding was based on no evidence, rendering it perverse. However, the assessee argued that they relied on the declarations made by the purchasing dealers, which indicated the necessity of the goods for manufacturing in West Bengal. The Tribunal found that there was no material to dispute the declarations made by the purchasing dealers, and thus, the assessee was entitled to claim the exemption under section 5(2)(a)(ii) based on the conclusive nature of the declarations.3. The Tribunal emphasized that the genuineness of the purchasing dealers and the accuracy of their declarations were not in dispute. The department's challenge was focused on the absence of specific mention of leather boots in the registration certificates, which was deemed immaterial based on previous legal precedents. The Tribunal concluded that the declarations in form XXIV were conclusive, as there was no evidence to suggest they were untrue, thereby entitling the assessee to claim the exemption. The Tribunal held that no question of law arose in the case, and the reference made by the Revenue was unnecessary, leading to the disposal of the reference with no order for costs.Judgment Summary:The Tribunal, after thorough analysis, concluded that the expression 'consumable stores' in the registration certificates covered the leather boots sold by the assessee to the purchasing dealers. Additionally, based on the declarations made by the purchasing dealers indicating the necessity of the goods for manufacturing in West Bengal, the Tribunal found that the assessee was entitled to claim the exemption under section 5(2)(a)(ii) of the Act. The Tribunal dismissed the Revenue's contentions, stating that no question of law arose in the case, and the reference made was unnecessary. The reference was thus disposed of with no costs awarded.