TaxTMI 
TaxTMI 
2006 (3) TMI 728
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....been added: (A) Menthol, (B) Distilled Water, (C) Water Menthol Mixture. 4. In the aforesaid certificate w.e.f. 29.10.1976, the following items have been added: 1. Generating sets, alternators, connectors, voltage establishes, transformer with related accessories. 2. Steel pipe, steel plate, steel reinforcement bars. 3. Insulators and seals, vent pipe, top & bottom ends. 4. Coalatar enamels. 5. Coaltar primer. 6. Fibre Glass. 7. Kraft paper. 8. PVC Tape. 9. Cathodie Protection Materials. 10. Oil and buch. 11. Control instruments. 12. Tale control and tale communication equipments. 5. In the aforesaid certificate w.e.f. 09.03.1973, the following items have been added: Laboratory equipment, implement, machinery plant, cranes, trolleys, conveyors, vehicle for transport of material from ware house to laboratory, accessories, spare parts, lubricants, fuel, glass ware, scales, chemicals, acids, electrical goods, air conditioner. 6. In the aforesaid certificate w.e.f. 18.06.1973, the following items have been added: Manufacturing purpose (1) Plant and machinery, (2) Laboratory Equipment, (3) Equipment and materials, (4) Tools and imple....
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....; COVERED IN REGISTRATION CERTIFICATE UNDER 1981-82 1982-83 1983-84 1986-87 1987-88 L.P.G. CYLINDERS 8847786 690837 - - - EMPTY PACKAGES SAFETY BOOTS 315280 - 254101 - - CONSUMABLE STORES WOODENSLEEPER 4311717 - - 811676 - CONSUMABLE LADDER 59550 - - - FITTING & FIXTURES R.C.C. PIPE 223200 83290 - - FITTING & FIXTURES KAMBALIBLANKE 247847 11875 - - 11. Assessing authority had not accepted the plea of the applicant and levied the penalty under Section 10-A of the Act. First appeals filed by the applicant were dismissed. Applicant filed second appeals before the Tribunal, which too have been dismissed by the impugned order. 12. Heard Sri Bharatji Agrawal, learned Senior Advocate, assisted by Sri Pi....
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....thority stated that in the registration certificate empty packages is shown under the column of resale. It is further stated that the LPG gas cylinder is not required for use in the manufacturing, in as much as it is used for filling of gas after the manufacturing. 2. Safety Boots. - It is claimed to be covered under the consumable stores. It is stated that it is used by the employees while filling tank in lorry and also dipping and for its measurement. 3. Wooden Sleeper. - It is used in keeping the goods. 4. Mica Brick - It is used for floor making. 5. Ladder - It is used for filling of petroleum products. 6. R.C.C. Pipe - It is used for extracting water from building and filling sheds. 7. Kambal (Blanket) It is used by chaukidars in night duty. 8. Vessels - It is used for filling of LPG tank. It is claimed to be covered under the item steel plate. 9. Cement It is used in the construction of building. 10. Yarn - It is used as safety cap of cylinders. It is covered under consumable stores. 11. Trailer - It is used for transporting the gas cylinders from one place to another place. It is covered under motor-vehicle. 12. Hospital Equipment - It is use....
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....3) The goods referred to in Clause (b) of Sub-section (1)- (b)...are goods of the class or classes specified in the certificate of registration 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. 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. 19. Contents of declaration in Form "C' are as follows: The Central Sales Tax (Registration and Turnover) Rules, Form-'C' Form of Declaration [See Rule 12(1)] Name of issuing State.... Office of issue.... Date of issue.... Name of the purchasing dealer to whom issued alongwith hi....
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....ich mined ore and turned out copper in carrying on activities as a miner and as a manufacturer) fell within Rule 13, even if the vehicles were used merely for removing ore from the mine to the factory, and finished goods from the factory to the place of storage. Spare parts and accessories required for the effective operation of those vehicles were also held to fall within Rule 13. (See Indian Copper Corporation Ltd. v. Commissioner of Commercial Taxes, Bihar and Ors.). 22. In this case goods used in the process of designing has been held to have been used in the manufacturing of goods. Apex court further held as follows: Building materials including lime and cement not required in the manufacture of tiles for sale cannot, however, be regarded within the meaning of Rule 13, as raw materials in the manufacture or processing of goods or even as "plant". It is true that buildings must be constructed for housing the factory in which machinery is installed. Whether a building is a "plant" within the meaning of Rule 13, is a difficult question on which no opinion need be expressed. But to qualify for specification under Section 8(3) (b) goods must be intended for use of the nature ....
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....y and mines and in the hospitals set up for affording medical facilities to its employees. The question was whether the following goods should be specified under Section 13(b) of the Central Sales Tax Act, 1956, in the certificate of registration issued to the assessee:- (i) Locomotives and motor-vehicles, (ii) accessories and spare parts for motor-vehicles and locomotives; (iii) household, laboratory, hospital and general furnishings and fittings; (iv) medical supplies; (v) stationery; (vi) tyres and tubes for motor-vehicles; and (vii) cane baskets. The High Court held that the assessee was entitled to include only the following goods in the certificate of registration:- (a) Locomotives and motor-vehicles actually used in carrying and removing raw materials during the process of manufacture; (b) locomotives and motor-vehicles used both underground and on surface during mining operations; (c) accessories and spare pails for such locomotives and such motor-vehicles; (d) tyres and tubes for such motor-vehicles; (e) laboratory fittings used for the sampling and analysis of the ore and other raw materials in the initial stages of mining operations and in the process of manufacture. Wit....
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....ed penalty on the ground that in respect of the aforesaid goods, dealer was not entitled for the benefit of preferential rate. The levy of penalty was confirmed up to the stage of Board of Revenue. In reference, the Division Bench of Rajasthan High Court held that in respect of the above goods, dealer was entitled to preferential rate Matter went to Hon'ble Supreme Court. Hon'ble Supreme Court held as follows: Now the only question is whether the respondent was guilty of falsely representing, when purchasing the goods referred to earlier, that those goods were covered by the certificate of registration. Unless it is shown that he had made such a false representation, Section 10A is not attracted. Two Judges of the High Court and one Member of the Board of Revenue have come to the conclusion that the respondent was entitled to the preferential rate which he claimed. That is the view of the law taken by them Assuming, without deciding, that the view taken by them is incorrect even then it is impossible to say under the circumstances of the case that the respondent was guilty of making any false representation. The view of the law, which he is contending for is supported by....
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.... mentioned in the registration certificate Division Bench of Madhya Pradesh upheld the order of the Tribunal. 27. In the case of Braja Lal Banik v. State of Tripura and Ors., (Supra). Division Bench of Gauhati High Court set aside the penalty under Section 10-A of the Act on the ground that in the notice issued under Section 10-A of the Act did not contain any details whatsoever of the alleged charges under Section 10(b) except for replacing the language of the said clause, and no such details were given even after being asked for and even the order of the penalty did not contain any of these informations. 28. In thecae of Spring Valley Fruits Products Co. Ltd., Bareilly v. CST (Supra) dealer was registered for plant and machinery. It produces generator. Penalty under Section 10-A was levied on the ground that dealer was not registered for generator. The claim of the dealer was that generator was machinery and under this belief Form C was issued. This Court set aside the penalty on the ground that the dealer was under the bonafide belief. 29. In the case of CST v. Tek Invest (India) Pvt. Ltd., Haridwar, (Supra), dealer was registered for machinery while it had issued Form ....
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....istration, did not amount to bonafide belief. It has been held that the dealer had neither applied for registration for Machinery nor in the registration certificate, machine was mentioned and therefore, it could not be said that the dealer was not aware that it was not registered for Machine while making purchase of machine and thus order of the Tribunal deleting the penalty under Section 10A read with Section 10(b) was set aside. 34. In the case of The CST v. S/S Hari Oil and General Mills, Mathura (Supra) dealer was carrying on the business of manufacture and sale of oil and oil cakes. Dealer in its registration application sought registration only for machinery, plant, spare parts and electrical goods. The goods used for packing of goods but has not mentioned oil seed in the registration application and accordingly, registration application was not issued in oil seed. Dealer, however, issued Form C for oil seed. This Court held that dealer was liable for penalty under Section 10-A of the Act for issuing Form C for oil seed for which it was not registered. 35. In the case of CST v. Rewa Cold Fields Ltd. and Anr. (Supra), dealer was engaged in operating the coal mine, sough....
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....he items either required for resale or intended for use in the manufacturing. On these background, it has to be examined whether the items in respect of which Form C was issued were covered or not under the registration certificate and dealer was entitled to issue Form "C" in respect thereof and while issuing Form C in respect of such goods, the applicant acted under the bonafide belief and there was no false representation, Apex court and the various High Courts have held that thy items, which are directly or indirectly required in the manufacturing of goods is eligible for the benefit of concessional rate of tax and would be covered under Section 8(3)(b) of the Act and Rule 13. It has been held that the goods like building material, hospital equipment etc. are not the goods eligible for the benefit of concessional rate of tax. The goods which are not connected with the manufacturing but are connected with the sale or distribution of the manufactured commodity is also not eligible for the benefit of concessional rate of tax, in as much as they are not required for use in the manufacturing. The applicant claimed to be the manufacturer of petroleum products, lubricant, grease, HSD, ....