Form C declarations can cover job work processing for third parties when the processed goods are intended for sale.

Section 8(3)(b) of the Central Sales Tax Act, 1956 allows goods purchased against Form C declarations to be used in the manufacture or processing of goods for sale, and that language is wide enough to cover job work for third parties when the processed goods are intended for sale. Applying that interpretation, use of hexine oil in processing customers' goods did not amount to misuse of the declarations. No breach of the Form C declarations was established.

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Issues: Whether the use of goods purchased against declarations in Form C for processing goods of third parties on job work basis, where the processed goods were intended for sale by those third parties, constituted a breach of the declarations under the Central Sales Tax Act, 1956.

Analysis: Section 8(3)(b) of the Central Sales Tax Act, 1956 permits a registered dealer to use goods purchased against Form C declarations in the manufacture or processing of goods for sale. The expression is not confined to goods manufactured for the dealer's own sale and is wide enough to include manufacture or processing undertaken for a third party, so long as the resulting goods are intended for sale. In view of the Supreme Court decision overruling the contrary earlier view, the use of hexine oil in job work for customers did not amount to misuse of the declarations.

Conclusion: The assessee did not commit any breach of the Form C declarations by using the goods in processing goods of other parties meant for sale by those parties.

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