9911796707
TMI Blog1985 (9) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... ing this period for this purpose was in the course of its business of manufacturing cement, when the petitioner's factory commenced production of cement only from November, 1980. By orders (annexures C and D) dated 28th December, 1981 pertaining to the two calendar years 1977 and 1978, the Assistant Commissioner of Sales Tax, Satna (M.P.), has held that the petitioner is liable to pay entry tax on this material to the extent specified therein. It is the quashing of these two orders of assessment, which is sought in this petition. 2.. It is not disputed that the business of the petitioner is manufacture of cement in its factory at Maihar and the manufacture of cement therein commenced from November, 1980 and that the purchase of iron and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of sub-section (1) therein provides for levy of entry tax on the entry "in the course of business of a dealer" of goods specified in Schedule II, into each local area for consumption, use or sale therein. Section 2(2) of the Entry Tax Act provides that all those expressions which are used but are not defined in this Act and are defined in the Sales Tax Act shall have the meanings assigned to them in that Act. The expression "business" is not defined in the Entry Tax Act and, therefore, for the purpose of construing the same as used in section 3 of the Act, reference has to be made to the definition of the expression "business" given in section 2(bb) of the M.P. General Sales Tax Act, 1958. This is the significance of the definition of " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, obsolete or discarded goods, mere scrap or waste material and (b) goods which are obtained as waste products or by-products in the course of manufacture or processing of other goods or mining or generation of or distribution of electricity or any other form of power." 5.. Both the aforesaid Division Bench decisions have held that purchasing of building material for erection of a factory before commencement of the assessee's business cannot be a transaction in connection with or incidental or ancillary to its business of manufacture and, therefore, the building material cannot be treated as purchase "in the course of business" so as to make it exigible to entry tax. It has been held that the activity of construction undertaken to mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the transaction should be at least incidental or ancillary to the professed business of the assessee equally applied to matters covered by sub-clause (a) therein. We may also observe that sub-clauses (a) and (b) which alone have been relied on by the learned Deputy Advocate-General, in terms have no application to the facts of the present case, since the goods are not of the description specified therein. The result is that there is no ground on which the aforesaid earlier Division Bench decisions of this Court can be distinguished. 7.. As a result of the aforesaid discussion, it must be held, following the aforesaid earlier Division Bench decisions of this Court, that the petitioner was not liable to pay entry tax on the purchase of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
