TaxTMI 
TaxTMI 
1978 (12) TMI 189
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....purchase tax under section 16 of the Gujarat Sales Tax Act, 1969, on the purchases of timber sizes made against declarations in form 19 ?" 2. The reference has been made in the following facts and circumstances : The applicant is a manufacturer of heavy machinery, air-compressor and vacuum pumps. The case of the applicant was that these articles were manufactured as per specifications given by the customers and subject to test of performance to be carried out at the premises of the customers after their erection. During the period of assessment from 6th May, 1970, to 31st March, 1971, the applicant had purchased timber sizes worth ₹ 1,04,004 against declarations in form 19. These timber sizes were used for preparing crates for ....
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....f the authorities below. At the instance of the assessee, therefore, the question set out above is referred to us. 3. This Court has, by its decision of 17th November, 1978, in Vasuki Carborundum Works v. State of Gujarat (Sales Tax Reference No. 13 of 1976) [1979] 43 STC 294 at the instance of M/s. Vasuki Carborundum Works, Thangadh, disagreed with the view of the Tribunal expressed in Second Appeal No. 361 of 1974 decided on 8th May, 1975, following which the Second Appeal No. 80 of 1976 preferred by the assessee-applicant herein before us was rejected. This Court held, applying the decision of the Supreme Court in J.K. Cotton Spg. & Wvg. Mills Co. Ltd. v. Sales Tax Officer [1965] 16 STC 563 (SC) that there is no warrant for limiting the....
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.... raw materials or processing materials or must more or less stand on the same footing. We do not think that the learned Assistant Government Pleader was right in his contention that consumable stores must be given a very restricted meaning since they are used along with the words 'raw or processing materials' in section 13(1)(B). In the ultimate analysis, the relevant question is : are the articles in question the prescribed articles required in the manufacture of taxable goods for sale ? In other words, are they consumable stores or materials required in a process or activity which is integrally connected with the manufacturing activity and without which the activity of manufacture may be commercially inexpedient ? The answer, in o....
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....onnected with the manufacturing of machinery, etc., according to the specifications of the customers ? It should be noted that the assessee-applicant before us is a manufacturer of air-compressor and vacuum pumps according to the specifications given by the customers and since in the very nature of articles they should have precision bearing, the applicant claims, they should be packed in crates so that when erected on site, they would be able to pass through the test performance so as to satisfy the specifications prescribed by the customer concerned. This is essentially a question of fact, and therefore, unless there is sufficient evidence to justify the conclusion that unless the machinery manufactured by the assessee-applicant herein ar....