TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether fire-bricks purchased for use in ceramic manufacturing fell within the expression "machinery" in the exemption notification issued under the Rajasthan Sales Tax Act, 1954, and whether the assessee was therefore entitled to exemption and immunity from penalty for alleged misuse of the declaration form.
Analysis: The exemption notification covered sale of machinery for setting up specified industries. The expression "machinery" had to be construed in the context of the object of the notification, namely, to extend benefit only to machinery needed for setting up the industries mentioned. Fire-bricks were merely hardened bricks used in ceramic manufacturing. They did not constitute a machine, nor could they be treated as an organised mechanism or works of a machine. On that construction, the assessee's purchase of fire-bricks did not qualify for the exemption, and the declaration form was wrongly used.
Conclusion: The fire-bricks were not machinery within the notification, the exemption was unavailable, and the assessee was liable to penalty. The revision was therefore allowed in favour of the Revenue.
Ratio Decidendi: An exemption notification granting benefit to "machinery" for setting up specified industries must be construed according to its object, and materials or consumables that are not machinery in the true sense cannot be brought within its scope merely because they are used in the industrial process.
TaxTMI 
