Concessional sales tax for own use or captive consumption denied where purchaser merely arranged direct delivery to third parties.

The concessional sales tax under G.O. Ms. No. 172 was confined to goods sold to public sector undertakings, Government companies or co-operative societies for their own use or captive consumption. Where asbestos cement sheets were ordered by nationalised banks but delivered directly to third-party customers, the banks neither took delivery nor used the goods themselves. On those facts, the condition for concessional treatment was not satisfied, and the tax benefit was not admissible. The article also notes that the Tribunal's findings on delivery and use were findings of fact, leaving no question of law arising from them.

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Issues: Whether the concessional rate of tax under G.O. Ms. No. 172 was available when asbestos cement sheets were ordered by nationalised banks but delivered directly to their customers for use in constructing poultry sheds and other purposes.

Analysis: The condition in the Government Order required that the goods manufactured in the State be sold to public sector undertakings, Government companies or co-operative societies for their own use or captive consumption. The banks did not receive or take delivery of the goods, and the goods were delivered directly to the customers who actually used them. On those facts, the banks neither used the goods nor consumed them captively. The Tribunal's findings on use and delivery were findings of fact, and no question of law arose from them.

Conclusion: The concessional rate of tax was not admissible, and the assessee's claim failed.

Ratio Decidendi: Concessional sales tax benefit restricted to a purchaser's own use or captive consumption cannot be claimed where the purchaser merely facilitates delivery of goods to third parties who alone use them.

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