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TMI Blog1979 (11) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... n gas, electrodes and acetylene gas be included in the certificate of registration of the dealer for purposes of section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941, as then extended to the Union Territory of Delhi?" The relevant facts are that the assessee is a registered dealer and carries on the business of manufacturing iron chains and bolts. The assessee moved an application on 1st December, 1973, to the Sales Tax Officer for addition of the following items in columns 3(a) and 3(b) of the certificate of registration issued under the Bengal Finance (Sales Tax) Act, 1941, as then extended to the Union Territory of Delhi (hereinafter referred to as the local Act), and the Central Sales Tax Act, 1956, w.e.f. 15th November, 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the order of the learned Additional District Judge, the Commissioner of Sales Tax moved an application before the Appellate Tribunal, Sales Tax, Delhi, for making a reference of a question of law to this Court. The Appellate Tribunal was of the opinion that a question of law did arise and, consequently, referred the aforesaid question of law for the opinion of this Court. The only question that arises for decision in this reference is whether the items mentioned above can be said to be "raw material" within the meaning of section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941, as extended to the Union Territory of Delhi. The said section before its amendment by Act 20 of 1959, read as under: "Section 5. (2)(a)(ii) Sales to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1958. Section 8(3)(b) of the Central Sales Tax Act is as follows: "Section 8. (3)(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." The words of section 8(3)(b) of the Central Sales Tax Act are clearly wider in scope than the present words of section 5(2)(a)(ii) of the local Act. In the absence of a definition in the relevant Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing process are turned into iron chains or bolts. The Tribunal had relied on the judgment of the Supreme Court in the case of J. K. Cotton Spinning & Weaving Mills Co. Ltd. v. Sales Tax Officer, Kanpur, and that is reported in [1965] 16 S.T.C. 563 (S.C.). In our opinion, the judgment supports the contention of the petitioner which is clear from the following observations made in the judgment: "The expression 'in the manufacture of goods' in section 8(3)(b) should normally encompass the entire process carried on by the dealer of converting raw materials into finished goods. Where any particular process is so integrally connected with the ultimate production of goods that, but for that process, manufacture or processing of goods would be co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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