1970 (2) TMI 126

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....y and equipment with accessories including spares. 2.. Steel structures and fabricated parts. 3.. Refractories and fireclay. 4.. Construction equipment and tools and tackles including spares. 5.. Locomotive, vehicles, rolling-stock and track materials. 6.. Paints, varnishes, chemicals and explosives. 7.. Construction materials such as, but not limited to, cement, steel, pipes and pipe fittings, asbestos sheets, G.I. sheets, wire ropes. 8.. Erection materials such as, but not limited to, cables, welding materials, electrical bulb, petrol, diesel oil, lubricants, grease, hardware materials, bolts and nuts and washers, gases, timber, glass, cotton waste, metals, grinding stones, drill sets, small tools, rubber belts etc. ....

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.... shall be liable to pay tax under this Act, which shall be three per cent. of his turnover. 8.. (3) The goods referred to in clause (b) of sub-section (I)(b) are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for resale 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 miningor in the generation or distribution of electricity or any other form of power." Rule 13 of the Rules is as follows: "13. The goods referred to in clause (b) of sub-section (3) of section 8 which a registered dealer may purchase, shall be goods intended for use by him as....

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.... rule 13. They must come to a conclusion whether such goods were intended to be used by the petitioner in any of the manner prescribed therein. 5.. The law on the point was not very clear when the matter was considered by the taxing authorities. In the meantime the position has been clarified by a decision of the Supreme Court in J.K. Cotton Spinning & Weaving Mills Co. Ltd. v. The Sales Tax Officer, Kanpur, and Another[1965] 16 S.T.C. 563 (S.C.).  Their Lordships analysed the provisions in that case and came to the conclusion that a restrictive construction cannot be placed on the expression "in the manufacture". They indicated how anomalies would arise if a restrictive construction takes place. It will be profitable to refer to th....