Unsold manufactured goods outside section 10 liability when the statute covers only goods actually purchased by the dealer.

Section 10 of the Haryana General Sales Tax Act, 1973 fastens liability only on unsold goods actually purchased by a registered dealer after registration, and the expression "goods purchased by him" does not extend to manufactured products derived from those goods. Bricks manufactured from purchased coal therefore fell outside the provision, so tax on the value of the unsold bricks could not be sustained. The reference was answered in favour of the assessee, with the levy held unjustified because the statutory language could not be enlarged to cover manufactured goods merely because they were produced from purchased inputs.

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Issues: (i) Whether the expression "goods purchased by him" in section 10 of the Haryana General Sales Tax Act, 1973 includes products manufactured from goods so purchased. (ii) Whether levy of tax on the value of unsold bricks was justified.

Issue (i): Whether the expression "goods purchased by him" in section 10 of the Haryana General Sales Tax Act, 1973 includes products manufactured from goods so purchased.

Analysis: Section 10 fastens liability only in respect of goods purchased by a registered dealer in the State after registration and remaining unsold at the time of cancellation of the registration certificate. The goods in stock were bricks, which had been manufactured from coal purchased by the assessee. The statutory language does not extend to manufactured products derived from purchased goods. To read such an into the provision would enlarge the language beyond its plain scope.

Conclusion: The expression does not include products manufactured from the purchased goods, and the question is answered in favour of the assessee.

Issue (ii): Whether levy of tax on the value of unsold bricks was justified.

Analysis: This question depended entirely on the answer to the first issue. Since section 10 did not apply to the bricks in stock, the levy on their value could not be sustained.

Conclusion: The levy of tax on the value of unsold bricks was not justified, and the question is answered in favour of the assessee.

Final Conclusion: The reference was answered by holding that tax under section 10 cannot be levied on manufactured goods merely because they were produced from purchased inputs, and the assessment on the unsold bricks failed.

Ratio Decidendi: Liability under section 10 arises only for unsold goods actually purchased after registration, and it does not extend to manufactured products derived from those goods.

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