2004 (5) TMI 551

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....m of concessional rate of purchase tax under section 7(2) of the M.P. General Sales Tax Act, 1958 on the raw material used in galvanising nuts and bolts as jobwork for another dealer on the ground that such manufactured goods were not sold by the registered dealer manufacturing the goods? 2.. Whether, under the facts and circumstances of the case, the Tribunal was justified in rejecting the claim of concessional rate of entry tax at half per cent on the ground that the material was not used as raw material by the assessee as it was only job-work and not manufacture? " 2.. The assessee deals in galvanising the nuts and bolts, etc. The period involved in the case relates to November 8, 1980 to October 27, 1981 and it pertains to sales t....

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....l rate of tax. So far as payment of purchase tax was concerned, the case of assessee was that it should be charged at the rate of 3.5 per cent. However, this was also not accepted on the ground that the transaction in question is not a manufacture. This finding was again assailed by the assessee before the Tribunal in second appeal by contending that the job-work done by them amounts to manufacture for the purpose of getting the benefit of concessional rate of tax. However, even the Board while repelling this contention and upholding the finding of assessing officer and appellate authority held that from mere reading of the wordings of section 7(2) of the Act read with rule 20-B(iii) it is clear that the concessional rate of purchase tax is....

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....cessional rate of 3½ per cent in respect of raw material and 4½ per cent in respect of incidental goods."   "20-B. Levy of concessional rate of tax under sub-section (2) of section 7.-The tax at the concessional rate under sub-section (2) of section 7 on the purchases of material or incidental goods for use in the manufacture of other goods for sale shall be levied subject to the following restrictions and conditions, namely: ................... (iii) The goods manufactured by using raw material or incidental goods shall be sold by the registered dealer manufacturing such goods, in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of Indi....