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TMI Blog1992 (5) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the Assistant Commissioner rejecting the eligibility certificate under Notification No. 1177-F.T. dated March 31 1983 issued under section 4AA of the West Bengal Sales Tax Act, 1954. 2.. The case of the applicant may be briefly stated as follows: The applicant carries on business as a manufacturer of corrugated and card board boxes as also corrugated board and card board at No. 99C, Garpar Road, Calcutta 9 and was duly registered both under the Bengal Finance (Sales Tax) Act, 1941, in respect of corrugated boxes and the West Bengal Sales Tax Act, 1954 in respect of corrugated paper board. The applicant was also registered provisionally with the Directorate of Cottage and Small Scale Industries, Government of West Bengal, on May 5, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Commissioner spells out the various processes involved and will clearly indicate the position with regard to the ground on which the eligibility certificate has been rejected: "The process of manufacture of corrugated paper board from kraft paper involves corrugation of kraft paper which is done in corrugation machine. The corrugated paper roll (which is 2-ply-one side corrugated and other side plain) so obtained is cut into sizes with the help of cutting machine. Finally, the corrugated side of the sized corrugated sheet is pasted with another sheet of kraft paper with the help of pasting machines, and the final products, i.e., corrugated paper board, is obtained. The dealer has got no corrugation machine and gets the kraft paper corrug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not entitled to tax holiday and the order of rejection of eligibility certificate was valid and justified. 5.. The case of the applicant is that the end-product is required to be manufactured in the unit in terms of the relevant notification. It does not lay down that each and every operation required for manufacture of corrugated paper board has to be executed in the applicant's factory. The respondents have failed to appreciate the modus operandi of the applicant's business and have brought in considerations not warranted by law and totally extraneous to the issue of eligibility certificate as provided for in the relevant notification. Admittedly, the finished product, viz., corrugated paper board, is manufactured in the applicant' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even when the process of corrugation was done from outside. 7.. Mr. Bose relied on a decision of the Rajasthan High Court in C.T.O., Special Circle, Alwar v. Modern Suitings Ltd. [1991] 81 STC 277. Under section 5CC of the Rajasthan Sales Tax Act, 1954, there is provision for remission of tax for a specified period on raw materials required to be purchased for the manufacture of goods for sale. The question arose whether an assessee, who purchases yarn, dyes it and gets the work of weaving done on job basis and further sizes the cloth and performs other processes in relation to the endproduct, i.e., dyed and printed cloth, was entitled to the benefit of remission of tax. It was held that the provision nowhere lays down that the entire proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere of notified commodity....manufactured in such an industry set up by him". (Emphasis* supplied). It further provides that "newly set up small-scale industry shall mean a new industrial unit,.... which is registered with the Cottage and Small Scale Industries Department of the Government of West Bengal". 10.. The registration certificate indicates the location of the factory and the manufacturing activity involving specific item or items of manufacture. These are an integral part of such registration. We have to harmoniously construe the provisions while deciding the contentious issue. 11.. To adjudicate the case the most important issue is to find out the exact nature of the manufacturing activities of the industry. In other words, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d it does not do it there but gets it done in somebody else's factory, it can be said to have violated a specific condition for eligibility of tax holiday. It is not such a case here. The industry, was not required to manufacture corrugated paper roll, it was required to buy it from the local market and use it as a raw material in its factory for manufacture of corrugated paper board. It hardly makes a difference whether it locally purchases it or gets the corrugation done in somebody's factory, for the purpose of tax holiday. Here italicised. So long as corrugated paper remains a raw material for the purpose of the said industry and so long as the nature of the activity of the industry remains what it was required to be in terms of its r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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