9911796707
TMI Blog1964 (9) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... Mettur Chemical and Industrial Corporation, also manufactures soap. For the manufacture of either article groundnut oil is essential. In the case of certain commodities, sales of which are taxable under the Madras General Sales Tax Act at a single point, the Act provides that where anyone of such article is used as a component part in the manufacture of any other article liable to single point levy of tax, the sale of the first mentioned article shall be taxed at the concessional rate of 1 per cent. only, instead of the rate specified in the First Schedule to the Act, which lists out articles liable to single point levy. Section 3(3) of the Act, which provides for the lower rate of tax indicated, contains a proviso which is in these terms: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case) certifying that the goods purchased by him are for use by him as a component part of other goods specified in Schedule 1. As stated already, the petitioners applied to the appropriate authority for the prescribed blank declaration forms. The Commercial Tax Officer refused to supply the forms, expressing his view that the raw materials used in the manufacture of the goods mentioned by the petitioner go in "as ingredients in the manufacture and do not form separable component parts of such goods. The concession under subsection (3) of section 3 is not, therefore, applicable in such cases," and this order of the Commercial Tax Officer was concurred in by the Deputy Commissioner of Commercial Taxes. It was the refusal to supply the form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods may be capable of being used in the manufacture of other goods mentioned in the same Schedule. Before the goods are manufactured, the assessee has to purchase such goods as would form the raw material for the manufactured goods. It is at this stage that the assessee has to furnish a certificate in Form XVII to the dealer from whom he purchases such raw material and it is to enable him to make the purchase that this certificate has to be prepared and handed over to the selling dealer. Whether or not the concessional rate of tax would be available in respect of the sale of that raw material would be a matter to be considered at the time of the assessment of the turnover of the selling dealer. The mere issue of a blank declaration form to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artmental officials were in error in pronouncing upon the validity of possible future claim which might be made by the assessee at the stage when he was merely asking for a form of declaration and nothing more. While we agree with the conclusion reached by Veeraswami, J., that writs of mandamus should issue in these cases, we reach that conclusion on a different line of reasoning. In our opinion, it was not necessary for the learned Judge to have determined in the course of these writ proceedings whether the sale of vegetable oil, which went into the manufacture of vanaspati or soap, would be eligible for the concessional rate of tax. Subject to these observations, we dismiss the writ appeals with costs. Counsel's fee (one set) Rs. 100. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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