TaxTMI 
TaxTMI 
1997 (2) TMI 511
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....essment years are 1981-82, 1982-83 and 1983-84. 3.. The Assessing authority found that the appellant had effected inter-State purchase issuing "C" forms to the tune of Rs. 15,85,619.01, Rs. 2,17,310.77 and Rs. 11,245.16 for the assessment years 1981-82, 1982-83 and 1983-84 respectively. According to the assessing authority, since these goods were used for manufacture or processing of goods for a third party on job-work basis, the assessee failed to satisfy the provisions in section 8(3)(b) of the Act. It also found that purchases amounting to Rs. 50,005.83, Rs. 8,422.95 and Rs. 2,900 for the years 1981-82, 1982-83 and 1983-84 respectively were unauthorised as they were not covered by the class or classes of goods mentioned in the Central sales tax registration certificate issued to the assessee. On this ground, the assessing authority found the appellant guilty of offence under sections 10(b) and 10(d) of the Central Sales Tax Act. Penalty under section 10A to the extent of Rs. 2,37,840, Rs. 32,590 and Rs. 1,680 was also imposed for the three years. 4.. Aggrieved by the order passed by the assessing authority, the assessee took up the matter in revision before the Deputy Commiss....
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....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 mining or in the generation or distribution of electricity or any other form of power." Rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957 provides as follows: "13. Prescription of goods for certain purposes.-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 raw materials, processing materials, machinery, plant, equipment, tools, stores, spare parts, accessories, fuel or lubricants, 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." Registration certificate issued is for manufacture and sale of tread rubber and other allied rubber products. Assessing authority took the view that the assessee availed the benefit of concessional rate on inter-State purchases by issue of "C" forms, but there was no manufacture and sale of tread rubber and other ....
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....subject-matter of subsequent sale. But, then, as mentioned earlier, the goods which are brought to sale, are not the one which is manufactured by the assessee. Therefore, by a plain reading of clause (b) and applying the same to the facts of the present case, it can be seen that the assessee has not satisfied the provisions contained under clause (b). 9.. Now, we will consider the different decisions relied on by the learned counsel for the appellant in support of the contention taken by the assessee. In Assessing Authority-cum-Excise and Taxation Officer v. East India Cotton Mfg. Co. Ltd. [1981] 48 STC 239, Supreme Court had occasion to consider the scope of section 8(3)(b) of the Act. In the above case, the assessee, who was carrying on the business of manufacturing and processing textiles in Faridabad, purchased goods in the course of inter-State trade on the basis of its certificate of registration and furnished to the selling dealers declarations in form "C" stating that the goods were purchased for use by the assessee in the manufacturing of goods for sale. On the strength of the declaration, the selling dealers were taxed on a concessional rate. The goods purchased were us....
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.... industry, production of the finished goods would be difficult without the use of electrical equipment, the equipment would be regarded as intended for use in the manufacture of goods for sale. But, this would not include electrical equipment not directly connected with the process of manufacture. Drawing support from the above decision, learned counsel would submit that manufacture of tread rubber by the assessee is integrally connected with the manufacture of tyres which are the goods brought to sale, and the assessee is entitled to contend that it substantially satisfies the provisions contained under clause (b). 12.. In Indian Aluminium Company Limited v. Sales Tax Officer, Ward-A, Sambalpur I Circle [1993] 90 STC 410 (Orissa), reference is made to the decisions in Assessing Authority-cum-Excise and Taxation Officer v. East India Cotton Mfg. Co. Ltd. [1981] 48 STC 239 (SC) and J.K. Cotton Spinning & Weaving Mills Co. Ltd. v. Sales Tax Officer [1965] 16 STC 563 (Orissa) while holding that so long as the dealer used the raw materials in manufacture of aluminium finished products, even if such manufacture was outside the State, there was no contravention of the provisions of the ....