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TMI Blog2007 (3) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration of high speed diesel oil under Central Sales Tax Act for the purchase at concessional rate of tax on the ground that they were required for the production of gur. Assessing authority denied the benefit of high speed diesel oil on the ground that high speed diesel oil was being used in the operation of the generator for the generation of the electricity. Order of the assessing authority has been upheld in the first appeals. Tribunal by the impugned order allowed the appeals and held that the dealer is entitled for the registration of high speed diesel oil. It has been held by the Tribunal that generator is machinery as held by this court in the case of Tetragaon Chemic (P.) Ltd. v. State of U.P. Ghaziabad reported in [1998] UPTC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of tax. I have perused the order of Tribunal and the authorities below. Generator is held as machinery by the apex court in the case of Commissioner of Income-tax v. Mir Mohammad Ali reported in [1964] 53 ITR 165 and by this court in the case of Snow White Industries, Rishikesh v. Commissioner of Trade Tax [1999] UPTC 130. It is useful to refer section 8(1), 8(3)(b) of the Central Act and rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957 (hereinafter referred to as the Rules ), which read as follows: Section 8. Rate of tax on sales in the course of inter-State trade or commerce. (1) Every dealer, who in the course of inter-State trade or commerce, (a) Sells to the Government any goods; or (b) Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etwork or in mining or in the generation or distribution of electricity or any other form of power is eligible for the benefit of concessional rate of tax. Rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957 says that the goods referred to in clause (b) of sub-section (3) of section 8 which a registered dealer may purchase shall be goods intended for use by him as raw material, processing materials, machinery, plant and equipment, tools, stores, spare parts, accessories, fuel or lubricants in the manufacturing or processing of goods for sale or in mining or in the generation of electricity or in any other form of power. Perusal of section 8(3)(b) of the Central Act and rule 13 of the Rules show that the benefit of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court held that the language of section 8(3)(b) of the Central Sales Tax Act is wide and it is not open to read it in a restricted manner, as has been done by the Sales Tax Officer. The provision applies, whether the generator is required as the exclusive source of supply of electricity or as a subsidiary one. There is nothing in the provision excluding its applicability to generator, if the same was required as a stand-by measure. The Division Bench, accordingly, directed to include all the items in the registration certificate. In this view of the matter it is held that the high speed diesel oil required for the operation of generator for the generation of the electricity is eligible under rule 13 of the Rules and under section 8( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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