9911796707
TMI Blog1997 (5) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1956 (hereinafter referred to as "the Act"). The petitioner started making inter-State purchases of various raw materials and consumable stores required for the manufacture of gas cylinders from different parts of the country. The purchase of these raw materials and consumable stores were divided into two categories, i.e., those required for the manufacture of gas cylinders sold by the petitioner to various oil companies and those purchased by the petitioner to enable the firm to execute the job contracts entered into with various oil corporations. Out of the consumables and raw material needed for executing job contracts, only steel sheets were supplied by the corporations whereas rest of the consumables were purchased by the petitioner-firm on inter-State sale basis from various places outside Faridabad. It has been stated in the petition that a perusal of the list attached with the certificate of registration "annexure A" would show that a large number of articles were necessary raw material for the purpose of manufacture of gas cylinders particularly those in category "B" of the list. 3.. The case of the petitioner-firm is that right from 1969 to 1980, the Assessing Authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorities below while the remaining appeals are still pending. In C.W.P. No. 6597 of 1986, the petitioner-firm seeks quashment of the order of respondent No. 2 dated November 7, 1986, passed by the Sales Tax Tribunal in Sales Tax Appeal No. 128 of 1985-86. 4.. In C.W.P. No. 6180 of 1987 it has been stated by the petitioner that respondent No. 2, following its decision given in the appeal (S.T.A. No. 128 of 1985-86), relating to the year 1980-81, rejected the other appeals of the petitionerfirm for the years 1974-75 to 1979-80 and 1981-82 and 1982-83 by a single order dated November 11, 1986 (annexure "B" to C.W.P. No. 6180 of 1987). In C.W.P. No. 6180 of 1987, the petitioner-firm has challenged the validity of the order of respondent No. 2. 5.. In C.W.P. No. 5753 of 1989 the petitioner-firm has challenged the order dated January 13, 1989 (annexure P-2 to C.W.P. No. 5753 of 1989) passed by the Assessing Authority-cum-Deputy Excise and Taxation Commissioner, Faridabad (respondent No. 3) whereby a penalty of Rs. 1,00,000 has been imposed upon the petitioner-firm for the assessment year 1983-84. 6.. In the return filed by the respondents (in C.W.P. No. 6597 of 1986) the stand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "Packing material". These items are: (1) corrugated paper sheets; (2) G.I. wire; (3) packing cases and (4) nails, etc. The penalty imposed upon the petitioner-firm for contravention of the provisions of section 8(3)(b) of the Act are not in relation to these 4 items. In fact, the penalty has been imposed as the petitioner-firm failed to show that after purchasing goods mentioned against entry B of its registration certificate under the heading "for the purposes of manufacture" were sold by it. After purchasing such goods, the petitioner-firm had no reasonable excuse to show as to why it could not make use of such goods for the purposes specified in section 8(3)(b) of the Act. It has been further stated that the two appellate authorities below found the aforesaid factual position to be correct and accordingly dismissed the appeals filed by the petitioner-firm. It has been also stated that the gas cylinders did not find mention in the registration certificate of the petitioner-firm nor did it had purchased the gas cylinders. The petitioner could purchase goods on the registration certificate only for two purposes, i.e., for wholesale or retail sale of the goods manufactured by it fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation.-For the purposes of this sub-section a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State, if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods. (3) The goods referred to in clause (b) of sub-section (1)- (a) Omitted w.e.f. April 1, 1993; (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; (c) are containers or other materials specified in the certificate of registration of the registered dealer purchasing the goods, being containers or materials intended for being used for the packing of goods for sale; (d) are containers or other materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that under sub-section (1) of section 8 of the Act every dealer, who in the course of inter-State trade or commerce-(a) sells to the Government any goods; or (b) sells to a registered dealer other than the Government goods of the description referred to in subsection (3), shall be liable to pay tax at the rate of four per cent of his turnover. It was not a question before the Assessing Authority whether the petitioner-firm fulfilled the requirement of clause (b) of sub-section (3) of section 8 of the Act. The petitioner-firm purchased raw material from outside the State of Haryana on the strength of the certificate of registration, i.e., C forms and this raw material was utilised for the manufacture of gas cylinders for sale and for fabrication of gas cylinders for others for which it (petitioner-firm) received charges for the job work. Undisputedly, the petitioner-firm deals in the manufacture of gas cylinders for sale and also does job work for various oil corporations. The raw material, purchased on the strength of "C" forms, used in the fabrication of gas cylinders for the various oil companies was in contravention of section 10(d) of the Act as the goods purchased against "C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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