1964 (4) TMI 98

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...., tallows, starches, woollen clothings, gums, clays, salt, beltings, bobbins, shuttles, wooden accessories and other mill stores for manufacturing cloth, yarn, tiles and paints etc." The first respondent granted a certificate of registration No. K. R. 771, dated 8th July, 1957. On 30th July, 1958, the petitioner made another application to the first respondent to amend the aforesaid certificate of registration so as to include the following goods also in the list of goods specified therein, on the ground that the petitioner had omitted to specify the same in its original application: "Industrial gases, drawing instruments, photographic materials, packing materials including wood, paper, straw and cardboards etc. and building materials including iron, steel, cement, lime, fire-bricks and refractories." On 25th September, 1958, the first respondent amended the certificate of registration as prayed by the petitioner. Late in July, 1961, the petitioner received a notice No. Central/57-58/ST-2-598, dated 19th July, 1961, from the first respondent calling upon it to show cause as to why the aforesaid certificate of registration be not amended so as to exclude drawing instruments....

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....petitioner wrote to the Sales Tax Officer informing him that its representative had waited for him on 23rd July, 1962, and that as he was absent, some other date may be fixed in the matter. It is alleged by the petitioner that the officials of the Sales Tax Office refused to take delivery of the letter with the result that it was sent under registered post the same day. On 31st July, 1962, the petitioner submitted a representation to the second respondent, the Assistant Commissioner of Sales Tax, U.P., placing before him all the facts and contending that the certificate of registration was not liable to be amended by the Sales Tax Officer. The same day the second respondent passed the following order: "Office to report and ask the S.T.O. to keep in abeyance deletion of items." On 3rd August, 1962, the second respondent passed an order that as the disputed articles were not directly used in the manufacture of the goods for sale, the action of the Sales Tax Officer was justified and on 9th August, 1962, the first respondent passed an order directing the deletion from the registration certificate of the items: "Drawing materials, photographic materials and other commodities m....

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....the course of inter-State trade or commerce- (a) sells to the Government any goods; or (b) sells to a registered dealer other than the Government goods of the description referred to in sub-section (3); shall be liable to pay tax under this Act, which shall be one per cent. of his turnover. ............................................................ (3) The goods referred to in clause (b) of sub-section (1)- (a) in the case of declared goods are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for re-sale by him; (b) in the case of goods other than declared goods are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for re-sale by him or subject to any rules made by the Central Government in this behalf, for use by him in the manufacture or processing of goods for sale or in mining or in the generation or distribution of electricity or any other form of power." (Underlined by us). We will first take the drawing instruments, electricals, colours, chemicals and photographic materials....

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....pression "in the manufacture or processing of goods for sale". With regard to electricals, it has been contended that in order to work the factory efficiently and in order to have better manufacturing yield, it is necessary to have electric lights and fans in the factory and, therefore, electricals are required in the manufacture of goods. We are unable to agree. Even though we do not dispute that certain amount of light is necessary in order to carry on manufacturing operations, and electric fans are required for the convenience and efficiency of the workers, we are unable to see how these articles can be considered to be used in the manufacture of goods. In our judgment, the expression "in the manufacture of goods" has been used in the limited sense of those articles being used which are directly and actually needed for turning out or making of the goods. It would be noticed that the Legislature instead of using the words "in connection with" or "in relation to the manufacture of goods", which would have been the case if the idea was to include all the articles which directly or indirectly help in the manufacture of goods, has used the words "in the manufacture or processing o....