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TMI Blog1978 (7) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... e items in the registration certificate to enable it to have the benefit of the concessional rate of taxation under the Act. He however rejected the prayer of the assessee in respect of the following eight items: (1) Timber of all kinds. (2) Drawing office equipments and instruments. (3) Weighing machines and bridges. (4) Laboratory instruments and apparatus. (5) Paints, varnishes and pastes of all kinds. (6) Packing of all kinds (steam lubricating, graphite, asbestos packings). (7) Firebricks, fire cement, cement compound, china-clay and all types of building materials. (8) Glazed tiles. Aggrieved by the order of the Commercial Tax Officer, the assessee filed an appeal before the Deputy Commissioner of Commercial Taxes. He allowed the prayer in regard to only three items, namely, (1) Laboratory instruments and apparatus; (2) Weighing machines and bridges; and (3) Packings of all kinds. On further appeal to the Karnataka Sales Tax Appellate Tribunal, the Tribunal further modified the order of the Commercial Tax Officer by directing inclusion of firebricks, fire cement, cement compound and china-clay for the purpose of putting up boilers and timber for the purpose of manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) of sub-section (1)- (a) ..... (b) 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 ....." Rule 13 of the Rules reads: "13. Prescription of goods for certain purposes.-The goods referred to in clause (b) of sub-section (3) of section 8 which a registered dealer may purchase, shall be goods intended for use by him as raw materials, processing materials, machinery, plant, equipment, tools, stores, spare parts, accessories, fuel, or lubricants, 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." 4.. The contention of the department is that the inclusion of timber for the purpose of manufacturing racks and firebricks, fire cement and china-clay for the purpose of putting up of boilers was not warranted by rule 13 as the said purposes did not fall wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usion from the vehicles those which are used for removing goods to the factory after the mining operations 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 explained in annexure B-2 to the petition in respect of items (i), (ii) and (vi) ..... Those cane baskets which are intended to be used by the sanitary department for collecting refuse to protect the health and cleanliness of the colony and the workmen employed in the manufacture of goods, cannot, on the test set out earlier, be specified in the certificate of registration. But we are unable to agree with the High Court that the cane bask ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purposes specified against each of them. It is claimed that the purposes for which the assessee requires (1) timber of all kinds, (2) paints and varnishes, (3) firebricks, etc., and (4) glazed tiles are integrally connected with the efficient and proper working of the "plant" in the factory and the drawing office equipment and instruments constitute "equipment" in the manufacture of the goods in question. We feel that the case of the assessee to the extent it seeks inclusion of (1) timber of all kinds for using it in the construction or maintenance of building within the precincts of the factory, (2) paints and varnishes for using them in painting the factory buildings, and (3) firebricks, fire cement, cement compound and china-clay for using them in the construction of the factory buildings cannot be allowed in view of the following observations of the Supreme Court in the case of J. K. Cotton Spinning & Weaving Mills Co. Ltd.(1): "Building materials including lime and cement not required in the manufacture of tiles for sale cannot, however, be regarded within the meaning of rule 13, as raw materials in the manufacture or processing of goods or even as 'plant'. It is true that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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