9911796707
TMI Blog1972 (9) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... reference arose on the following facts: The respondent was a registered dealer as per section 7(2) of the Central Sales Tax Act, 1956. In his application for registration in form A, appended to the application vide item No. 16, the respondent had mentioned the following particulars: "Item 16.-The following goods or classes of goods are purchased by the dealer in the course of inter-State trade for resale or for use in manufacture of goods for sale or for use in the execution of contracts (a) Soudh, [given in HINDI] (b) Runk, Fickery, Nitrate, Soda, Sodium Nitrate, Caustic Soda, Acid, Aaued Sulphide of soda. -[given in HINDI] (a) For resale, (b) For use in manufacture, (c) For use in the execution of contracts." 3.. At both t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds 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." 5.. It is to be noted that manufacture or processing in the amended provision is in respect of goods for sale. Thus, the manufacture or processing of goods is coupled with the sale of goods and the two cannot be separated from each other. Therefore, even according to the amended provision, the element of sale was altogether l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as labour charges and moreover, the assessee claimed that the yarn belonging to others was either actually sold or was for sale, and the departmental authorities have made no enquiry on this point and have held without any evidence that the dyed yarn may not have been sold. 8.. However, this court held that it was necessary to find as a fact whether the charges which the assessee made from third parties, whose yarn he had dyed, were a lump sum charge or it had indicated the cost of the colour separately from other charges. In spite of best efforts, the Board of Revenue or the taxing authorities were unable to collect information in this behalf from the assessee who is said to be lying ill. However, we have to answer the reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction." 10.. Looking to the said provisions it is clear that the respondent having given a declaration in form A or form C, could not have used the dyes for dyeing the goods of others. For that it was necessary for him to keep the phrase which he had unfortunately struck out, namely, "for use in the execution of contracts". It may be that he might have struck out the phrase at two places inadvertently or not being aware of the implication of its omission. However innocent his act might have been, it will certainly amount to an offence as per section 10(d) of the Central Sales Tax Act, 1956, although it might be of a technical nature not deserving a very severe penalty. But, there is no escape from the conclusion that the respondent was gu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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