https://www.taxtmi.com/caselaws?id=150040 Goods purchased under declarations for use in manufacture for sale are not put to a prohibited use merely because part of the finished products is distributed as free samples. The Gujarat HC noted that the relevant declarations require use in manufacturing taxable goods or goods for sale, not that every finished article must actually be sold. In the pharmaceutical trade, sampling was treated as an integral part of the sales process, with sample cost absorbed in the price of the salable goods. On that basis, free distribution did not breach the undertakings in Form No. 15 or Form C, and penalties were not attracted under the Bombay Sales Tax Act, 1959 or the Central Sales Tax Act, 1956. en-us Thu, 26 Nov 1970 00:00:00 +0530 Wed, 08 May 2013 11:17:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=150040 Goods purchased under declarations for use in manufacture for sale are not put to a prohibited use merely because part of the finished products is distributed as free samples. The Gujarat HC noted that the relevant declarations require use in manufacturing taxable goods or goods for sale, not that every finished article must actually be sold. In the pharmaceutical trade, sampling was treated as an integral part of the sales process, with sample cost absorbed in the price of the salable goods. On that basis, free distribution did not breach the undertakings in Form No. 15 or Form C, and penalties were not attracted under the Bombay Sales Tax Act, 1959 or the Central Sales Tax Act, 1956. Case-Laws VAT and Sales Tax Thu, 26 Nov 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=150040