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TMI Blog1998 (6) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... stock registers. The relevant rules are rule 151(2)(a), 151(2)(b) and 151(2)(d) of the West Bengal Sales Tax Rules, 1995 (the 1995 Rules). 2.. The prayer for renewal of E.C. under section 41 was rejected by respondent No. 2, the Assistant Commissioner of Commercial Taxes, Special Cell by order dated November 12, 1997. He held that rules 151(2)(a) and (b) of 1995 Rules were violated for non-maintenance of separate accounts and separate serially numbered bills, cash memos, delivery notes or challans in respect of sales of goods manufactured in its newly set up industrial unit. He also held that rule 151(2)(d) was violated for non-production of production and stock registers, thereby making it impossible to check or verify the manufacturing activity. According to him, applicant-company did not maintain separate registers for stock of goods purchased for direct use in manufacture of goods and for stock of manufactured goods. In the absence of such registers the quantity of ingots manufactured could not be checked or verified. He held that rolled bars or steel bars were not manufactured in the unit of the applicant-company, because the company manufactured ingots in its unit but go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the points taken by respondent No. 2 to the effect that (i) the discrepancy between the figure of fixed assets shown in the balance sheet and the figure supported by details in connection with issuance of E.C. for the earlier period has not been explained, and (ii) that on October 6, 1997 respondent No. 2 did not find manufacturing activity or operation of plant and machinery at the time of his visit to the unit. These two points were also not agitated by either side before us at the time of hearing. The points urged by the learned Advocate, Mr. G.C. Mookerji on behalf of the applicant-company are (i) that the rolled bars were manufactured products of the company s own unit, although the ingots were converted to bars in other units, and (ii) no separate registers, accounts or sale bills, cash memos, etc., could be maintained for steel ingots in view of rule 52A of the Central Excise Rules, 1944. He also maintained in that connection that stock registers were maintained according to the Central Excise Rules. According to Mr. Mookerji, there is a conflict between Central Excise Rules and the rules framed under 1994 Act, and hence the applicantcompany cannot be held to have violated r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lve months from the commencement of eligibility period. In the instant case, E.C. was granted for the first twelve months. The present dispute is regarding E.C. for the next period of twelve months. According to rule 148(3), if the competent authority is satisfied, inter alia, that the dealer has not complied with the requirements of the provisions of the Act and the Rules for the purpose of sub-section (1) of section 41, he shall reject the application for reason recorded in writing after giving the dealer a reasonable opportunity of being heard. Regarding renewal of E.C., rule 149(3) lays down that the competent authority shall reject the application for renewal for reason recorded in writing, when he is not satisfied that the dealer is eligible for remission of tax under section 41(1). Some of the conditions and restrictions mentioned in section 41(1) are prescribed in rule 151(2), already referred to. Therefore, if the rolled bars are not manufactured by the applicant-company in its newly set up industrial unit, and if it has not maintained separate accounts in respect of sales of steel ingots which are goods manufactured in its unit, or it has not maintained separate seriall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... implies a change, but every change is not manufacture. A new and different article must emerge having a distinct name, character or use. It is undisputed that the applicant-company sends steel ingots manufactured by it to different units for conversion thereof to rolled bars, and it is claimed that after receiving back the rolled bars, it does some finishing work to the same and sells them as rolled bars. That being the position, we must agree with respondents 2 and 1 respectively that the applicant-company manufacture in its own newly set up unit the rolled bars, even if the finishing work claimed by it was actually done. Before such finishing work the goods were rolled bars and after the activity claimed to have been done by the applicant-company, the goods remained rolled bars. There has been no change whatsoever in the name or character or use of the goods. Both are same commercial commodities. Hence, we have no reason to disagree with the finding of respondents 2 and 1 on the above point. 6.While the applicant has claimed before us that it has done some finishing job in respect of rolled bars, respondent No. 2 held in his order dated November 12, 1997 that: "The entire and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dents opposed this contention. It is well-known that the Central Excises and Salt Act, 1944 and the rules framed thereunder deal with manufacture or production of goods and excise duty thereon and they have no applicability to sales of goods or sales tax. He referred to the following portion of rule 52A of the Central Excise Rules, 1944: "Goods to be delivered on an invoice.-(1) No excisable goods shall be delivered from a factory or a warehouse except under an invoice signed by the owner of the factory or his authorised agent: Provided that when the excisable goods, other than those to which the provisions of Chapter VII-A apply are removed on payment of duty, such invoice shall require to be countersigned by the proper officer. Explanation.-In this rule and in any other rule, where the term invoice or gate pass, as the case may be, is used, it shall mean- (i) assessee s own document such as invoice, challans, advice or other document of similar nature generally used for sale or removal of excisable goods and it shall contain all the particulars as required under the said Act or in these rules; or (ii) Such other form as the Central Board of Excise and Customs may notify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 of 1995 Rules, it must be realised that the two laws and the two sets of rules operate on completely separate fields, with no chance of overlapping. Therefore, even if an invoice or gate pass is to be issued under Central Excise rule 52A, by applying the rule of harmonious construction, the apparent conflict should be resolved and the applicant-company will be required to maintain separate accounts and separate sale bills, cash memos, delivery notes or challans for the purpose of sales of goods manufactured in its own unit, namely, steel ingots, to fulfil the requirements of section 41(1) of 1994 Act read with rule 151(2)(a) and (b). The applicant-company cannot be allowed to take the plea of Central Excise rule 52A, for violating rule 151(2) of 1995 Rules. If it wants to take advantage of remission of tax under section 41, it must comply with rule 151 of 1995 Rules. Such being the position, we have no reason to differ with the findings in this respect of respondents 2 and 1 respectively. 9.. There is a small controversy about maintenance of separate stock registers of two kinds under rule 151(2)(d). Respondent No. 2 recorded in his order dated November 12, 1997 that no such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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