TaxTMI 
TaxTMI 
2000 (8) TMI 1078
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....ll pending with the appropriate authority. The firm claims that even before the purchase by Debasis Pal the business was for manufacture of utensils of brass, bellmetal, German silver and that on the strength of R.C., raw materials, plant and machinery and spares for such manufacture were being purchased at the concessional rate of tax. Firm's further case is that during Mr. Pal's proprietorship and thereafter the firm has been manufacturing P.B. flange, P.S. rounds and leaded casting ring, the raw materials whereof are the same as are for manufacturing utensils of brass, bellmetal and German silver. The firm's application dated June 25, 1998 for issue of declaration forms was rejected by the Commercial Tax Officer (respondent No. 1) on the ground that the raw materials earlier purchased on the basis of R.C. were not used for manufacture of goods mentioned in the R.C. The applicants filed two revisional applications before the two successive revisional authorities challenging such order but without success. In the meantime, the respondent No. 1 served on the partners of the firm notices under sections 77 and 78 of the West Bengal Sales Tax Act, 1994 (in short, "the 1994 Act") and u....
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....rate mentioned in sub-clause (i), or sub-clause (ii), of clause (b) and clause (d) of sub-section (2) of section 17, as being required for use directly in the manufacture in West Bengal of taxable goods or newspaper for sale.....................................in West Bengal............................" 5.. Mr. Chakraborty, therefore, contends that the R.C. of a manufacturing dealer shall specify only the class or classes of raw materials which the dealer is entitled to purchase at the concessional rate of 3 per cent. According to him, the Act or the Rules framed thereunder do not require the R.C. to specify which goods are to be manufactured with such raw materials. He adds that it is sufficient compliance of the statutory provision if such raw materials are used for manufacturing "taxable goods" for sale in West Bengal. He is, therefore, of the opinion that the raw materials purchased by the applicant-firm against D forms being the goods specified in its R.C., it (the firm) is entitled to the benefit of concessional rate of tax on such purchases since it has used the same for manufacture of "taxable goods". In his opinion, the fact that with such raw materials it manufactured ....
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....rer, and the provision of the clause has been couched in the language suiting that purpose. So, from the seller's point of view it is enough if he before sale is satisfied that the raw materials are mentioned in the R.C. of the purchaser and that the products are "taxable goods" within the State. The exact enumeration of items of product of the purchaser is not so much of importance for the seller; but even then to know that a product is taxable item, a seller has to know what the products exactly are. In this context clause (bb) of section 5(1) of the 1941 Act may be compared. Therefore, even subclause (ii) of clause (b) of section 17(2) of the 1994 Act impliedly requires mention of the exact products in the R.C. Moreover, the statutory obligation of the manufacturer-purchaser cannot be wholly decided with reference to the language of sub-clause (ii) of clause (b) of section 17(2) which deals with only the seller's right to concessional rate of tax under specified circumstances. The purchasermanufacturer's rights and obligations are to be found out from other statutory provisions as well. 9.. It is significant to note that sub-rule (1) of rule 8 does not enumerate the exhaustiv....
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....he prescribed manner, inform the prescribed authority accordingly and if any such dealer dies, his legal representative shall, in the like manner, inform the said authority." Thus, whenever a registered dealer effects change "in the class or classes of goods in which he carries on his business" and which is specified in the R.C., the dealer shall have to inform the prescribed authority or else becomes liable to be prosecuted under clause (h) of section 88(1). The definition of expression "business", as provided in section 2(5) includes "manufacture". Thus, for a manufacturer-dealer the class or classes of products of his manufactory are in fact the class or classes of goods "in which he carries on his business". Thus, the products mentioned in the R.C. of a manufacturer-dealer is not a superfluous entry in the R.C. Moreover, we have already observed that under rule 8 the description of the product entered in the R.C. casts the same obligation on the dealer as do the raw materials mentioned in the R.C. Thus, the conjoint reading of clause (c) of section 97 and rule 8 of the 1995 Rules and other provisions indicate that while a dealer can change his product subject to th....