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TMI Blog2013 (9) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... l in the facts and circumstances was correct and justified in ignoring the fact that manufacturing could be in number of processes and each process may be in itself be a process of manufacturing and till such time the last process is performed the goods remain in the "process of manufacturing" which is not in contravention to the requirement of Section 4(2)(a) of Delhi Sales Tax Act and the only requirement of law is that the goods should be manufactured in Delhi. Law being silent on part-manufacturing, whether Tribunal could still invoke the 3rd proviso in such case. 3. Whether on facts and circumstances of the case the conclusion of the Tribunal is just and right in construing that movement of raw material outside Delhi is permissible only for the "process not amounting to manufacture" as per rule 4 of Rules framed under Delhi Sales Tax Act, 1975 even if one process of manufacturing is partly done outside Delhi and remaining process is completed in Delhi and confirming the findings of the STO that petitioner is deemed to have violated the provisions of Section 4(2)(a) and so the dealer was liable to be taxed on the purchases." The questions arise from Appeal No. 307/STT/03-04 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cating Authority referred to the invoices, which were produced before him and wherein it was recorded that the goods dispatched were new gold ornaments. Adjudicating Authority has recorded that the invoices received gave description of the item received/issued, purity of material, gross weight, net weight, purpose for which the gold was issued/received and labour charges were mentioned. He has recorded that the goods received by the petitioner were new ornaments and were in themselves saleable commodities. 6. Similar findings have been reiterated for the Assessment Year 1997-98. 7. The aforesaid findings were upheld by the first appellate authority, i.e., Assistant Commissioner. He had observed that the petitioner had purchased standard gold/biscuits/bullion against ST-1 forms on the specific stipulation that manufacturing shall be carried out in Delhi, but the gold purchased was taken out of Delhi and was converted into ornaments at Meerut, Coimbatore, etc. After the ornaments were manufactured, they were received back by the petitioner at Delhi. Assistant Commissioner referred to the vouchers and observed there was no doubt that manufacturing of gold ornaments was done outside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or sale by him inside Delhi; or 2. for sale by him in the course of inter-State trade or commerce, being a sale occasioning, or effected by transfer of documents of title of such goods during the movement of such goods from Delhi; or 3. for sale by him in the course of export outside India being a sale occasioning the movements of such goods from Delhi, or a sale affected by transfer of documents of title to such goods effected during the movement of such goods from Delhi, to a place outside India and after the goods have crossed the customs frontiers of India; or (B) of goods of the class or classes specified in the certificate of the registration of such dealers as being intend for resale by him in Delhi, or for sale by him in the course of inter-state trade or commerce or in the course of export outside India in the manner specified in sub-item (2) or sub-item (3) of item (A), as the case may be; and (C) of containers or other materials, used for the packing of goods, of the class or classes specified in the certificate of registration of such dealer, other than goods specified in the Third Schedule, intended for sale or resale; (vi) such other sales as are exempt from paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment of Delhi to the effect that raw material purchased by him would be used for manufacture in Delhi and goods would be subjected to sale in Delhi, in course of intra-State trade or in course of export outside India. Movement of such goods from Delhi should be occasioned by the sale and not for/by any other purpose. Therefore, when a purchasing dealer did not adhere to the declaration, which he had furnished, the State was wrongfully deprived of revenue i.e. sales tax. Accordingly, the turnover of the purchasing dealer would include the goods covered by the mis-declaration. The taxable event was mis-utilisation of the declaration form, which took place when the goods were transferred for manufacturing outside Delhi. But for the declaration form, the purchasing dealer was liable to pay sales tax at the time of the purchase made by him. Thus, the taxable event and the tax, which was due and payable but not paid in view of the declaration, became payable as there was mis-utilisation and false or wrong declaration. 13. Learned counsel for the petitioner tried to distinguish the said decision and submitted that in Seagull Laboratories (I) Private Limited (supra) there was transfer o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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