1982 (7) TMI 267

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....under the Act. The assessing authority did not exempt the dealer (M/s. Metal Cans) because it felt that even though the goods were mentioned in the certificate in Form 3-B, since no recognition certificate could be issued during the year in question for packing material, the dealer was bound to pay tax on those sales. 2. In an appeal against the order of assessment, M/s. Metal Cans repeated the claim for exemption which was accepted by the Assistant Commissioner (Judicial), Sales Tax. The view taken was that, inasmuch as, the sales had been made in respect of goods covered by the recognition certificate issued to a manufacturer, they were exempt from tax. The Assistant Commissioner (Judicial), consequently, reduced the tax liability afte....

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.... Tax Act contemplates special relief to certain manufacturers in the matter of levy of sales tax. Sub-section (2) of this section envisages that a manufacturer may apply and obtain in the prescribed form a recognition certificate in respect of goods referred to in subsection (1) which are required by him for use as raw material for the purpose of manufacture in the State of U. P. notified goods which are intended to be sold by him in the State or in the course of inter-state trade or commerce or in the course of export out of India. Sub-section (1), apart from referring to the category of goods about which a recognition certificate may be obtained, also lays down, amongst others, that where a dealer sells those goods to a manufacturer who h....

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....stances of the present case, to examine the question further for it is clear that packing material (which would include containers sold by M/s. Metal Cans) came later to be included amongst the list of raw materials in respect whereof a manufacturer could seek a recognition certificate. 5. In the State of Madras v. Radio and Electricals Limited and another, (1966) 18 STC 222, a similar question had arisen before the Supreme Court in regard to the power of the assessing authority to decide whether the goods covered by a certificate of registration issued under the provisions of the Central Sales Tax Act and the Rules framed thereunder, which entitled them to a concessional rate of tax, were rightly so included in the certificate of regist....