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TMI Blog1982 (8) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... lers under the provisions of the said Act and which have been claimed to be used, directly in the manufacture of goods for sale in West Bengal. It was the case of the said petitioner that during the assessment proceedings for the period, as mentioned hereinbefore, before the Commercial Tax Officer, they duly explained the basis on which the concerned deductions were claimed in respect of the weighing and testing machines and parts thereof, which in short, were claimed to have been sold by the said petitioner to registered dealers. It has also been stated that the said petitioner further explained that the said weighing and testing machines were attached to the manufacturing plant at various points and without weighing and testing materials at various stages of the process, no manufacture could be possible. The said petitioner has also stated to have produced all relevant declaration forms from the concerned registered dealers, who according to them, inter alia, declared that the goods sold by the said petitioner fell within the relevant description as contained in the certificate of registration and were used in the manufacture of goods for sale in the manner as indicated hereinb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reof and consumable stores as may be required in the manufacture of any goods for sale". The said officer, it has been stated, that on such finding, disallowed Rs. 5,51,014.40 and with regard to the other disallowance the said officer entirely failed to carry out the direction of the Additional Commissioner concerned. It has also been stated that the Commercial Tax Officer assessed the said petitioner to tax to the tune of Rs. 82,519 and the said petitioner has paid such amount. The said order dated 15th May, 1975, has been disclosed as annexure B to the petition. It was the claim and contentions of the said petitioner now, that the Commercial Tax Officer concerned was and is a judicial or quasi-judicial body or he discharges judicial duties and performs judicial functions and holds a public office but in the instant case, he had failed to discharge the onus or the obligations which were imposed on him. In fact, it has been claimed that the said Commercial Tax Officer had acted without jurisdiction and in excess of the same or in abuse of or in usurpation of a jurisdiction, which he did not possess. In fact, it has been stated that the said officer has acted contrary to law and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machines for use directly in the manufacture of goods. He has further stated that against such claim of the petitioner, the Commercial Tax Officer concerned asked for production of the certificates of the purchasing dealers, but the said petitioner could not produce those registration certificates, and as such, the officer concerned duly disallowed the claim for deduction. He has claimed that reassessment as made in the manner as indicated hereinbefore was due, lawful and with jurisdiction and there was no violation of principles of natural justice or any irregularity committed. He has categorically stated that the said petitioner was not entitled to the deductions as claimed. He has also stated that the purchasing dealers not having purchased the weighing machines from the said petitioner for using directly in the manufacture of goods for sale and the purchasing dealers' registration certificates not having contained coverage for purchase of weighing machines for use directly in the manufacture of goods, the deduction of the sum as mentioned above could not be claimed and they were appropriately disallowed. It was the case of the said deponent that the respondent-officer concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct in terms of the directions as contained in the remand order, at least with regard to the disallowance of Rs. 71,478. It was further claimed that the determinations on remand as made by the Commercial Tax Officer concerned was otherwise without jurisdiction and erroneous in law. In the case of State of Madras v. Radio and Electricals Ltd. [1966] 18 STC 222 (SC); AIR 1967 SC 234, which was under the Central Sales Tax Act, 1956, it has been observed that the Act and the Rules do not impose an obligation upon the purchasing dealer to declare that goods purchased by him are intended to be used for one purpose only, even though under a certificate of registration he is entitled to purchase goods of the classes mentioned in section 8(3)(b) for more purposes than one. When the purchasing dealer furnishes a certificate in form C without striking out any of the four alternatives, it is a representation that the goods purchased are intended to be used for all or any of the purposes and the certificate complies with the requirements of the Act and the Rules. The sales tax authority is, of course, competent to scrtuinize the certificate and to find out whether it is genuine. In appropr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no obligation in the instant case of the selling dealer to produce the necessary evidence which was sought to be relied upon by the officer concerned and such obligation of the selling dealers was completed on production of the necessary declaration forms from the purchasing dealers, who again are registered in West Bengal. Mr. Gupta contended further that on remand the Commercial Tax Officer concerned had not acted within the four corners of the direction as given in the remand order which it was bound to do and as otherwise the effect would be disastrous. In support of such submissions he referred to the determinations of the Supreme Court in the case of East India Commercial Co. Ltd., Calcutta v. Collector of Customs, Calcutta AIR 1962 SC 1893. It has been observed that it is implicit in the power of supervision conferred on the superior tribunal that all the tribunals subject to its supervision should conform to the law laid down by it. Where the Supreme Court has laid down that an Administrative Tribunal cannot ignore the law declared by the highest Court in the State. Taking into consideration the provisions of articles 215, 226 and 227 of the Constitution of India, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lemented and supported by Mr. Gupta, on a reference to the observations of the Supreme Court in the case of Mohinder Singh Gill v. Chief Election Commissioner, New Delhi AIR 1978 SC 851. Where it has been observed that when a statutory functionary makes an order based on certain grounds, its validity must be judged by the reasons so mentioned and cannot be supplemented by fresh reasons in the shape of affidavit or otherwise. Otherwise, an order bad in the beginning may, by the time it comes to court on account of a challenge, get validated by additional grounds later brought out. On merits Mr. Gupta claimed and that too on a reference to the determinations as have been mentioned hereinbefore, that weighing and testing machines, as purchased by the purchasing dealers from the said petitioner, were really attached to the manufacturing plant of the concerned purchasing dealers at various points and without them at various stages of the process, no manufacture could be possible. In support of such submissions Mr. Gupta, firstly referred to the determinations in the case of Phelps Co. (Private) Ltd. v. Member, Board of Revenue, West Bengal [1967] 20 STC 511. In that case, it has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was made following the observations in Phelps and Co. (Private) Ltd. v. Member, Board of Revenue, West Bengal [1967] 20 STC 511, holding inter alia amongst others, that such observations would apply appropriately in the facts of that case. While making the determinations, the learned judge also referred to the view of the Supreme Court as expressed in Member, Board of Revenue, West Bengal v. Phelps and Co. (Private) Ltd. [1972] 29 STC 101 (SC), which determination, as would appear, was made after relying on the decision of the Supreme Court in the case of J.K. Cotton Spinning Weaving Mills Co. Ltd. v. Sales Tax Officer, Kanpur [1965] 16 STC 563 (SC). In fact, the Supreme Court, reiterated that where any particular process was so integrally connected with the ultimate production of the goods, but for that process manufacture or processing of goods would be commercially inexpedient, goods required in that process would thus fall within the expression "in the manufacture of goods". It should be noted that the above-mentioned unreported judgment was cited by Mr. Gupta, after production of the same to Mr. Dutta, the learned Advocate for the respondents, and Mr. Dutta claimed that su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y place outside West Bengal, and of containers and other materials for the packing or such goods: Provided that the provisions of this clause shall not apply to any sale referred to therein unlesss the dealer selling the goods furnishes in the prescribed manner a declaration containing prescribed particulars in the prescribed form obtainable in such manner and subject to such conditions and restrictions as may be prescribed from the prescribed authority duly filled up and signed by the registered dealer to whom, or by the owner or representative of the undertaking to which, the goods are sold." He further stated that the old section 5(2)(a)(ii), which was substituted for the original sub-section (ii) by section 4(a) of the Bengal Finance (Sales Tax) (West Bengal Amendment) Act, 1950, being West Bengal Act 48 of 1950 and which was to the following effect: "(ii) sales to a registered dealer- of goods of the class or classes specified in the certificate of registration of such dealer, as being intended for resale by him, or for use by him in the manufacture of goods for sale or for use by him in the execution of any contract; and of containers or other materials for the packin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is recorded in the concerned certificates, the selling dealer is under no further obligation to see to the application of the goods for the purpose for which it was represented. It has also been observed in that case that if the certificate is defective in that it does not set out all the details, or that it contains false particulars about the order, bill, cash memo or chalan, or about the number and date of the registration certificate or specifications of goods covered by the certificates or the purchasing dealers, the transaction will not be admitted to concessional rates, apart from holding that the satisfaction which contemplated under the section is objective and may be arrived at upon a quasi-judicial enquiry. On a reference to the determinations as above, Mr. Dutta wanted to establish that the said petitioner was not entitled to the benefits as claimed as the goods in question were not appropriately and specifically entered into the certificates as produced by the purchasing dealers. In the case of Bhartia Electric Steel Co. Ltd. v. Commercial Tax Officer [1956] 7 STC 527. It has been observed that the expression "manufacture of goods" normally covers the entire proces ..... X X X X Extracts X X X X X X X X Extracts X X X X
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