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TMI Blog1964 (10) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... kyanite mines, other goods are purchased for use in its offices, factory and mines and in the hospitals set up for affording medical facilities to its employees. On April 30, 1957, the Corporation applied to the Superintendent of Sales Tax, Jamshedpur, for registration as a dealer under the Central Sales Tax Act (74 of 1956) setting out a list of goods for specification in the certificate of registration under section 8 of the Act. The Superintendent of Sales Tax issued the certificate of registration to the Corporation without specifying certain categories of goods which the Corporation claimed should be specified under section 8(3)(b) of the Act. The Corporation then petitioned the High Court of Patna under Articles 226 and 227 of the Constitution for an order that the Superintendent of Sales Tax be directed to specify the goods mentioned in paragraph 4 of the petition in the certificate of registration granted to the petitioner, on June 24, 1957, and to forbear from levying or realising tax under the Central Sales Tax Act from the Corporation in excess of one per cent. under section 8(1) of the Central Sales Tax Act. The goods in respect of which the Corporation claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch shall specify the class or classes of goods for the purposes of sub-section (1) of section 8." Sub-sections (2), (4) and (5) need not be reproduced. Section 8, as it stood at the date of the petition, read as follows: "(1) Every dealer, who in the course of inter-State trade or commerce- (a) sells to the Government any goods; or (b) sells to a registered dealer other than the Government goods of the description referred to in sub-section (3); shall be liable to pay tax under this Act, which shall be one per cent. of his turnover. (2) * * * (2A) * * * (3) The goods referred to in clause (b) of sub-section (1)- (a) * * * (b) in the case of goods other than declared goods 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; (c) * * * (d) * * * (4) * * * Section 13 authorises the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ials used in the course of manufacture and also are used by the sanitary department for collecting refuse and thereby ensuring the health and cleanliness of the colony of workmen employed in the manufacture of goods. All these items were, it was claimed by the Corporation, required for the mining operations and in the manufacture of copper and for the workmen employed in those operations. The High Court excluded from item (i) "Locomotives and motor- vehicles" those vehicles which were used by the Corporation after the mining operations were concluded and before the manufacturing process commenced and also vehicles used in carrying finished products from the factory on the conclusion of the process of manufacture. Those excluded vehicles were, in the view of the High Court, not intend- ed for use in the manufacture or processing of goods for sale or in the mining operations. On that view the High Court excluded also the accessories and spare parts for locomotives and motor-vehicles [item (ii)] and tyres and tubes of those motor-vehicles [item (vi)]. The High Court further held that the laboratory fittings used for sampling and analysis of ore and other raw materials ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erations are concluded. Nor is there any ground for excluding locomotives and motor-vehicles used in carrying finished products from the factory. The expression "goods intended for use in the manufacturing or processing of goods for sale" may ordinarily include such vehicles as are intended to be used for removal of processed goods from the factory to the place of storage. If this be the correct view, the restrictions imposed by the High Court in respect of the vehicles and also the spare parts, tyres and tubes would not be justifiable. We are, therefore, of the opinion that the Corporation was entitled to specification as set out in the petition and explain- ed in annexure B-2 to the petition in respect of items (i), (ii) and (vi). The statutes relating to factories and mines impose upon the owner of the factory and the mine obligation to maintain effective health services for the benefit of the workmen. But it cannot on that account be said that the goods purchased for the hospital such as equipment, furnishings and fittings are intended for use in the manu- facture or processing of goods for sale or in the mining operations. The mere fact that there is a statutory obligation im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he process of manufacturing or mining operations. We are also unable to appreciate why the High Court specified laboratory fittings used for analysis and sampling ore and other raw materials only in the initial stages of mining operations and in the process of manufacture. There is no discussion in the judgment in support of this observation, and we see no ground to support the reservation which restricts the specification to laboratory fittings used only in the initial stages. The order passed by the High Court will therefore be modified. Items (i), (ii) and (vi), laboratory fittings out of item (iii) used for sampling and analysis of the ore and other raw materials in the mining operations and in the process of manufacture for sale and cane baskets out of item (vii) used for carrying ore and other materials used in the course of manufacture, will be specified in the certificate of registration. Household, hospital equipment with furnishings and fittings [part of item (iii)], medical supplies [item (iv)], stationery [item (v)] and cane baskets used for collecting refuse to protect the health and cleanliness in the colony of workmen [part of item (vii)] will not be included in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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