Concessional CST applies only to registered goods used for manufacture or resale; building and interior materials do not qualify.

Concessional CST under Section 8(3)(b) of the Central Sales Tax Act, 1956 is available only where the purchased goods are covered by the registration certificate and are intended for resale or for use in manufacture or processing of goods for sale. Goods such as clean room accessories, glassware, false ceilings, walls, doors and grills were treated as building or interior materials, not as inputs with the requisite integral nexus to manufacture. Applying Section 8(3)(b) read with Rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957, the Court held that mere association with a manufacturing establishment is insufficient and upheld the revisional order reviving the penalty.

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Issues: Whether the goods purchased by the assessee were covered by the registration certificate so as to qualify for concessional CST under Section 8(3)(b) of the Central Sales Tax Act, 1956, and whether the revisional order restoring the penalty was sustainable.

Analysis: The registration certificate described the goods under the relevant sub-category as pharma products including capital goods, and the concessional scheme under Section 8 of the Central Sales Tax Act, 1956 applies only when the purchased goods fall within the certificate and are intended for resale or for use in manufacture or processing of goods for sale. The materials covered by the C-Forms were clean room accessories, room accessories, glassware, false ceilings, walls, doors, grills and similar items, which were found to be connected with building construction or interiors and not shown to have the requisite integral connection with manufacture. The Court applied the statutory scheme under Section 8(3)(b) read with Rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957, and relied on the settled principle that building materials used for a factory structure do not qualify as goods used in manufacture merely because they are connected with the manufacturing premises. The assessee also failed to establish the factual foundation necessary to demonstrate the claimed integral connection.

Conclusion: The goods were not eligible for concessional CST treatment under the registration certificate, and the revisional order setting aside the appellate relief and reviving the penalty was upheld.

Final Conclusion: The appeal was rejected and the Revenue's position was sustained.

Ratio Decidendi: Concessional CST under Section 8(3)(b) is available only for goods specifically covered by the registration certificate and intended for the statutory manufacturing or resale purposes; goods used for building construction or interiors do not qualify merely because they are associated with a manufacturing establishment.

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