https://www.taxtmi.com/caselaws?id=149927 Goods bought on a declaration for use in manufacturing a tax-free commodity were held not to fall within the second proviso to section 5(2)(a)(ii) merely because the finished product was tax-free; the proviso was triggered only on diversion from the declared purpose, so this contention failed. The levy was also characterised as recovery of deferred sales tax through a legal fiction, not as a separate purchase tax, meaning it operated within the sales tax scheme and not outside it. The Court further held that the statutory scheme and prescribed forms provided adequate machinery for collection, and any defect in forms did not defeat the charging or recovery mechanism. The assessment was left undisturbed. en-us Wed, 05 May 1971 00:00:00 +0530 Mon, 06 May 2013 13:06:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=149927 Goods bought on a declaration for use in manufacturing a tax-free commodity were held not to fall within the second proviso to section 5(2)(a)(ii) merely because the finished product was tax-free; the proviso was triggered only on diversion from the declared purpose, so this contention failed. The levy was also characterised as recovery of deferred sales tax through a legal fiction, not as a separate purchase tax, meaning it operated within the sales tax scheme and not outside it. The Court further held that the statutory scheme and prescribed forms provided adequate machinery for collection, and any defect in forms did not defeat the charging or recovery mechanism. The assessment was left undisturbed. Case-Laws VAT and Sales Tax Wed, 05 May 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=149927