Direct use in manufacture test excludes power-supplying generator and alternator from concessional CST purchase eligibility.

Goods sought for concessional purchase under the Central Sales Tax regime must be directly used in the manufacture or processing of goods for sale. In the context of khandsari sugar production, the sugarcane crusher was the equipment actually used in manufacture, but the generator and alternator only supplied power to run that equipment. On that reasoning, they were not treated as goods used in manufacture, so amendment of the registration certificate for concessional purchase was not justified.

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Issues: Whether generator and alternator used for running a sugarcane crusher for producing khandsari sugar could be treated as goods used in the manufacture of goods so as to justify amendment of the registration certificate for purchase on concessional rate of tax.

Analysis: Rule 3 and Rule 7 of the Central Sales Tax (Registration and Turnover) Rules, 1957 permit registration and subsequent amendment for specified goods relevant to the purposes of Section 8(1), Section 8(3) and Section 8(4) of the Central Sales Tax Act. The relevant test is whether the goods sought to be included are directly used in the manufacture or processing of goods for sale. The crusher was the instrument actually required for producing khandsari sugar, while the generator merely supplied power to run the crusher. The generator and alternator were therefore not directly involved in the manufacture of the finished goods.

Conclusion: The generator and alternator were not goods used in the manufacture of khandsari sugar, and the request for amendment of the registration certificate was rightly rejected.

Final Conclusion: The revision failed and the denial of concessional treatment for the generator and alternator was sustained.

Ratio Decidendi: Goods which only provide power to run manufacturing equipment, but are not themselves directly involved in the manufacturing process, do not qualify as goods used in the manufacture for concessional purchase under the Central Sales Tax regime.

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