TaxTMI 
TaxTMI 
2007 (1) TMI 187
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....the manufacture of polyester yarn." 4. In the present case, the respondent is engaged in the business of manufacture of polyester yarn and for the said purpose, it purchased diesel and used it for manufacturing electricity by D.G. sets. The respondent has claimed a benefit under Section 10(1) of Rajasthan Sales Tax Act, 1994 (hereinafter referred to as 'the Act') claiming that diesel purchased is a raw material for the manufacture of the ultimate final product - Polyester Yarn. 5. Under the notification issued under Section 10(1) of the Act, purchase of raw material for manufacture of final product is entitled to a concessional rate of tax @ 3% instead of the normal tax of 4%. The appellant submits that diesel is not a raw material for the manufacture of polyester yarn and, therefore, exigible to tax @ 4%. 6. The said Section 10(1) of the Act and the notification issued thereunder are reproduced hereinbelow : "Sec. 10 - Levy of Tax on raw material and processing articles (1) Notwithstanding anything contained in Section 4, but subject to such restrictions and conditions as may be prescribed, the rate of tax payable on the sale to or purchase by a registered dealer of....
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....oard, Ajmer which allowed the appeal filed by the respondent and set aside both the orders passed by the Assessing Authority and the Deputy Commissioner (Appeals). Being aggrieved by the order of the Tax Board, the State filed a revision under Section 84 of the Act before the High Court being S.B. Civil Sales-Tax Revision No. 6 of 2005. The High Court dismissed the revision filed by the appellant while holding that diesel used by the respondent was used as raw material and affirmed the order of the Tax Board. 11. We heard Mr. Sushil Kumar Jain, learned counsel for the appellant and Mr. Sanjay Jhanwar, learned counsel for the respondent. 12. Mr. Sushil Kumar Jain submitted that the respondent would be entitled for the concession under Section 10 for the purchase of raw material which is used in the manufacture of the final product. However, in the present case, diesel is being used for the manufacture of intermediate product - electricity and, therefore it is not entitled for the benefit under the said section. 13. It is also submitted that the later part of Section 2(34) (raw material) which includes fuel as a raw material, is qualified by the words "required for the proce....
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....tion certificate granted to the assessee is an order. Section 37 which deals with the rectification of a mistake provides that any officer appointed under this Act can rectify any mistake apparent from the record either suo motu or otherwise. Any order passed by him within a period of four years from the date of the order can be sought to be rectified. Similarly, the Commissioner under the provisions of Section 87 of the Rajasthan Sales Tax Act, 1994 is provided with the power to revise any order passed by officer subordinate to him if he considers it to be prejudicial to the interest of the revenue within a period of five years from the date on which the order sought to be revised was passed. Thus the power is given by the Act to rectify or revise the registration certificate prospectively. 16. Learned counsel for the respondent has also placed strong reliance on three decisions CTO v. Hindustan Radiator, reported in 62 STC 374, Bowen Press v. State of Maharashtra, reported in 39 STC 367 (Bom), Commercial Taxes Officer v. M/s. Alcobex Metal Corporation; reported in 1986 RTC 150 in support of his contention. In view of these judgments, it was submitted that once the commodity is....
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....ion 10(1) of the Rajasthan Sales Tax Act, 1994 by paying a concessional rate of tax as notified by the State Government. 21. We have already reproduced the question raised before this Court by the appellant as to whether the diesel purchased by the respondent can be termed as raw material for the manufacture of the final products - yarn and fabric. Diesel is a raw material for the respondents which is being purchased and utilized in the process of manufacturing by way of generation of power through which the plant and machinery are being operated. It is relevant to consider that before purchasing any goods as raw material, it is necessary for the purchaser to apply to the Assessing Officer concerned for issuance of registration certificate specifically mentioning such items as raw material. In the instant case, the respondent accordingly approached the appellant who granted the registration certificate after considering all the aspects of the matter and taking a conscious decision. It is not the case of the appellant that at the time of grant of such registration certificate all facts were not placed before the appellant and that there is concealment of any material facts. The r....
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....r suo motu or otherwise of any order passed by him within a period of 4 years from the date of order sought to be rectified. Similarly, the Commissioner under the provisions of Section 87 of the Rajasthan Sales Tax, 1994 is provided with the power to revise any order passed by officers subordinate to him if he considers it to be prejudicial to the interest of the revenue within a period of 5 years from the date on which the order sought to be revised was passed. Thus, the power is given by the act to rectify or revise the registration certificate prospectively. 25. Learned counsel for the respondent cited Commercial Taxes Officer v. Hindustan Radiator, reported in 1962 STC 374 which was rendered by a Division Bench of the Rajasthan High Court at Jodhpur. In this case, the assessee was carrying on the business of manufacture of motor radiators and was a registered dealer under the Sales Tax Act, 1954. The assessee purchased hydrochloric acid which has been included in the registration certificate as raw material, by furnishing a declaration to use it as raw material for manufacturing of radiators and, therefore, was entitled to pay concessional rate of tax. The Commercial Taxes O....
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....ered dealer for recognition under section 25 of the Bombay Sales Tax Act, 1959, is made to the Sales Tax Officer, he has to determine whether the dealer is entitled to get the certificate of recognition. Before granting the recognition certificate in form 7, the officer has necessarily to determine whether the goods mentioned in the list are goods in respect of which a recognition certificate can be granted, for which the officer has to make such enquiry as he thinks fit. When a recognition certificate is granted by the officer and any particular goods are included in the list appended to the recognition certificate, the grant of this certificate implies a finding by the officer that the goods listed are goods in respect of which recognition can be granted. This could be as a result of a quasi-judicial enquiry. If it is felt that the decision of the officer is incorrect, it could be revised by the appropriate authority. But once the recognition certificate is granted, it is not open to another officer assessing a dealer, who had sold the goods to the registered dealer holding the recognition certificate, to dispute the inclusion of any particular item in the recognition certificate....