9911796707
TMI Blog2002 (7) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... ificate under the Sales Tax Act and enjoys the benefit of remission of sales tax under section 43 of the Act of 1994 not only on the sale of different papers produced but also enjoys concessional rate of tax on the purchase of goods specified in the registration certificate for use directly in the manufacture of goods in West Bengal for sale in West Bengal upon declaration in form 12 along with certificate in form 10 to its sellers in terms of rule 52 of the Rules, 1995. But petitioner's application dated February 18, 1999 praying for issuing of the said form 12 was rejected by respondent by order dated March 15, 1999 on the ground of failure to furnish the details of purchases separately-of goods used for manufacture of paper (taxable goods) and that for exercise book (non-taxable goods). The petitioner manufactures paper from different raw materials, purchased by issuing declaration form 12. About 30 per cent of total production of paper is utilised in the manufacture of exercise books. In that view also, rejection order was passed. Against that, the petitioner came before this Tribunal by filing application registered as RN 126 of 1999 and Full Bench of this Tribunal disposed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ured is converted into exercise books by minor process which is not manufacturing process and that the benefit provided by section 17(2)(b)(ii) of the Act of 1994, or rule 52 of the Rules, 1995 is not limited to inputs actually used in the manufacture of taxable goods for sale but extends also to inputs purchased with intention to use in the manufacture of taxable goods for sale as in the present case and that the activity of conversion to exercise books is not a preplanned activity but prompted with a desire to mitigate the loss of this already sick unit of the petitioner and that consumable stores are consumed in the process of manufacture of paper-the finished product or output and that as such no portion of consumable stores is attributable to anything except paper and the condition laid down by this Tribunal in the earlier order applies to raw materials and not to consumable stores and that manufacture of exercise books is not an integrated process but manufacture of paper and the subsequent conversion by some minor manufacturing process into exercise books are disjointed, separate and disintegrated process and that for all these, denial of issue of declaration form in form 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and considering the facts and circumstances of this case and the points of law involved in the back drop of the statutory provisions of the Act of 1994 and the Rules framed thereunder, we are to come to a decision as to whether the order dated July 10, 2000 suffers from illegality as contended by Sri Kothari, learned advocate for the petitioner or is sustainable in law as contended by Sri J.K. Goswami-learned State representative. Admittedly the petitioner is a registered dealer-manufacturer who is entitled to the benefit of remission of tax as per section 43 of the West Bengal Sales Tax Act, 1994. A registered dealer availing of such benefit may, during its eligible period make purchase at concessional rate goods required and noted in the registration certificate for use directly in the manufacture of taxable goods in West Bengal for sale in West Bengal on furnishing declaration in form 12 and a certificate in form 10. As per rule 52, the dealer selling to the manufacturer (petitioner here) who enjoys the benefit of remission of tax under section 43 of the Act of 1994, goods-other than those specified in Part B of Schedule IV-for the purpose of determining its taxable turnover of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith a view to establish his proposition that actual use of the material is not but the intended use is pertinent. His reference to the case as reported in Sales Tax Cases, 1988, Volume 68 at page 173-State of Haryana v. Dalmia Dadri Cement Ltd. (Supreme Court) is for supporting that view. But that decision does not help in any way as the facts there are different from the instant case and the statute is also different one there. In that reported case, Punjab State Electricity Board got supply of cement from the assessee-cement company for use of the same in the generation or distribution of electrical energy. That sale of cement though initially was exempted but later that exemption was withdrawn as the Board used some portion of cement not for generation or distribution of electrical energy. It was held that the assessee is not required to prove that the cement was actually used for the purpose for which it was taken. The mere fact that some of the cement supplied was in fact used by the Board for activities not directly connected with the generation or distribution of electrical energy cannot make any difference regarding the availability of the exemption. That decision is not o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted respondent No. 1 to find out from books of account and other documents to be produced by the applicant as to what percentage of paper have been utilised in manufacturing exercise books so that the same percentage can be applied in respect of purchase of raw materials. The respondent was further directed to find out bona fide requirement of declaration forms-regard being had to the percentage of taxable goods manufactured by the applicant. Direction was given on respondent No.1 to issue such number of declaration forms of different varieties for purchase of raw materials during 1996-97 and 1997-98 as were utilised for manufacture of taxable goods for sale (of course excluding manufacture of non-taxable goods, namely, exercise books). At some places the words "purchase of raw materials" have been used in the order dated June 11, 1999 of this Tribunal and at various other places there is also mention of the words "showing purchase of goods" for production of taxable and non-taxable items. An attempt by the learned advocate for the petitioner was made to establish that chemical and dyes are not "raw materials" but simply chemicals and consumable items and as such are not subject to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by this Tribunal sitting in Full Bench. There is no scope now of making any decision on the same issue over again. Taxable goods is manufactured for the purpose of sale and are actually admittedly sold. Similarly, non-taxable goods manufactured by using consumables are also sold by the petitioner. Consumable articles chemical and dyes are "goods" or input or raw materials for manufacture and sale of exercise books also. That balance amount of chemicals and dyeson inspection by respondent No. 1-comes to 40 per cent of the total goods (consumable chemical and dyes) purchased in 1996-97 and 1997-98. A registered dealer is entitled to make purchase on payment of tax at concessional rate but for that, he is required to issue a supporting declaration form obtaining the same from his assessing authority. It is the dealer's obligation to see that the goods purchased are used by him directly in the manufacture of taxable goods for sale in West Bengal. Here the petitioner likes to claim and enjoy the benefit of purchase of consumable items at concessional rate even after using 40 per cent of the item in the production of non-taxable goods (exercise books). This he cannot do under the law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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