2008 (8) TMI 854

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rror and toughened glass. It is holding a recognition certificate under section 4B of the Act for the purchase of raw material (glass-sheet) on payment of no or concessional rate of tax. It was found that the dealer-opposite party has disposed of cuttings of glass-sheet which was not used by it in the manufacture of toughened-glass on consignment basis outside State of U.P. A show-cause notice under section 4B(5) of the Act was issued. In reply thereof it was submitted that those sheets were not of any use for manufacture of toughened glasssheet. The residue is waste and the same is sold as a waste which may be raw material for others. The said reply was not found satisfactory either by the assessing officer or by the first appellate author....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of production should also not be sold or disposed of. Section 4B provides special relief to certain manufactures. It authorises certain manufactures to purchase raw material for the manufacture of notified goods and such notified goods are required to be sold by him interState or in the course of its export out of India. Admittedly, the dealer purchased glass-sheet against form IIIB and availed the benefit of concessional rate of tax/exemption. It was thus obligatory on the part of the dealer to use such glass-sheets for the manufacture of toughened glass. Before selling the remains of glass-sheet, no permission from the Department was sought for. A learned single Judge of this court in Commissioner of Trade Tax v. Faruqi Glass Industries....