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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: Whether diesel oil used in diesel generator sets for running the factory is covered by the expression "goods required for use in the manufacture" under section 4-B(2) of the U.P. Trade Tax Act, 1948, and whether the circular and notices deleting diesel oil from the recognition certificate could be sustained.
Analysis: The statutory explanation to section 4-B(2) includes "fuels" within the goods required for use in manufacture. Diesel oil used for running generators supporting the manufacturing process was treated as fuel essential to the continuous operation of the factory machinery. The reasoning adopted the earlier interpretation that words cannot be added to a taxing statute and rejected the attempt to read in a limitation such as "directly" before the statutory phrase. On that construction, the circular and consequential notices were contrary to the statute.
Conclusion: Diesel oil used in the petitioner's generators was covered by section 4-B(2) and was goods required for use in manufacture; the circular and notices deleting diesel oil from the recognition certificate were invalid.
Ratio Decidendi: Where a statutory explanation expressly includes "fuels" among goods required for use in manufacture, diesel oil used to run generator sets integral to the manufacturing process falls within that expression, and no additional limitation can be read into the provision.
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