1986 (11) TMI 374

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....hich reads as under:   "The facts of the case are not disputed and are as follows. The nonapplicant-assessee is a manufacturer of wool tops. He is also registered under the Central Sales Tax Act, 1956 (hereinafter referred to as "the Central Act"). During the years 1964-65, 1965-66, 1966-67, 1967-68, 1968-69, 1969-70, the assessee purchased dyes in the course of inter-State trade and commerce on furnishing declarations in form C on payment of Central sales tax on these purchases at the rate provided under clause (b) of sub-section (1) of section 8 of the Central Act. The goods thus purchased were utilised by the assessee for dyeing raw wool of other dealers and he charged for the labour and the cost of material used by him in the dy....

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.... important authorities of the High Courts were cited before us. In Navsari Cotton Silk Mills Ltd. v. State of Gujarat [1976] 37 STC 140, an identical question was considered by the Gujarat High Court. The High Court held the words for use by him in section 8(3)(b) of the Central Act govern all the remaining words of the phrase, viz., 'in the manufacture or processing of goods for sale'. The phrase on proper analysis involves three concepts as follows: (i) The goods which are purchased should be for the use of dealer himself; (ii) such use should be for the purpose of manufacture or processing of goods; (iii) such manufacture or processing of the goods should be for sale. All these three concepts are so interlocked and interdependent that....

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....s should be for sale, irrespective of whether such sale would be by the purchasing dealer or by others." In view of the above the following reference has been made now which is contained in para 10, which reads as under: "Whether, on the facts and the circumstances of the case, utilising the materials purchased by the assessee on furnishing of declarations in form C prescribed in the Central Sales Tax (Registration and Turnover) Rules, 1957 for processing of wool belonging to others, amounted to failure on his part to make use of the goods for any of the purposes mentioned in section 8(3)(b) of the Central Sales Tax Act, 1956?" Mr. Bafna's submission is that even though the Supreme Court in Assessing Authority-cum-Excise and Taxati....