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TMI Blog2003 (9) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... of Eligibility Certificate (E.C.) 1.. The case of the petitioners is that the petitioner No. 1 is a new industrial unit which manufactures coal tar pitch, creosote pil, napthalene and dehydrated tar. The petitioners were granted certificate of eligibility for remission of tax under section 41 of the West Bengal Sales Tax Act, 1994 with effect from July 30, 1997. The E.C. was renewed from time to time till July, 2001. As per the E.C., names of 16 different goods like process tar, caustic soda, sulphuric acid, etc., are mentioned as goods to be used in the said manufacture. The petitioners by petition dated February 17, 1998 prayed for inclusion of further items like (i) container required for despatching finished goods, (ii) laboratory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the items which are required to be used directly in the process of manufacture of the finished goods. Therefore, there is no infirmity in the orders and the orders are required to be upheld as such. 3.. An affidavit-in-reply has been filed where nothing new except paragraph-wise denials of the affidavit-in-opposition are found. 4.. The only question for determination is whether the rejection of the amendment of the E.C. as made by the impugned orders should be upheld or not. 5.. Rule 52 of the West Bengal Sales Tax Rules, 1995, provides that the dealer selling goods other than those specified in Part B of Schedule IV to a registered dealer who is enjoying tax holiday will be entitled to deduct under section 17(3)(a) from his gros ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectron Manufacturing Pvt. Ltd. v. Commercial Tax Officer) the division Bench of Calcutta High Court held that the expression directly in the manufacture of goods and the expression for sale in West Bengal in rule 52 has to be understood in the context that goods are being manufactured for sale and that the manufactured goods cannot be sold unless properly packed in suitable containers. So, the court held that packing materials are used directly in manufacture of goods and for sale thereof. The court also held that the intention of the Legislature to grant exemption to selling dealers of packing materials sold to registered dealers enjoying tax holiday under section 39 of the 1994 Act is also evident from the wording of clause (c)(ii) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods which are used as ingredient or commodity in the creation of goods or which are directly or actually needed for turning out or making of the goods are termed as goods used in the manufacturing process. Learned Advocate then submits that all the machinery, plants, spare parts and accessories and the other materials for the inclusion of which prayer has been made for amendment of E.C. are used as ingredients for turning out the finished product coal tar pitch and allied products as mentioned in the registration certificate of the petitioner. We do not find anything to differ. 6.. The order dated July 15, 1998 of respondent No. 1 rejecting the petitioner's application does not contain reasons for the decision except stating that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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