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TMI Blog2016 (4) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... , are dispatched outside the State other than by way of sale, the consequences provided therein will follow. This would clearly mean that the legislature intended to cover the cases of sale in the course of inter-State trade or commerce in Section 6(3)(d) of the Uttarakhand VAT Act. Any other view would render the words in the proviso meaningless. In other words, when goods are sent by way of stock transfer in the course of inter-State trade, the case would not be covered by Section 6(3)(d) of the Uttarakhand VAT Act. The intention of the legislature was to provide limited relief of providing input tax credit, but confined to raw materials, which are used in the manufacture or processing of finished goods, which are sent by way of stock tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion setting aside the Impugned Circular bearing No. 4411 dated 23.01.2013, issued by the Respondent No. 1; iii. Issue any writ, order or direction holding that Section 6(3)(d) of the UKVAT Act, does not restrict / deny ITC claim on packaging material, containers etc. purchased locally, used in the manufacture of goods in Uttarakhand and sent outside the State otherwise than by way of sale ; iv. Alternate to prayer (iii) above and in the event this Hon be Court is to hold that Section 6(3)(d) of the UKVAT Act denies ITC on packaging material etc. in case of transactions other than by way of sale; issue any writ, order or direction striking down Section 6(3) (d) of the UKVAT Act as being ultra vires of Articles 301 and 304 of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel Sri Anil Kumar Joshi. 4. Sri Siddharth Bawa, learned counsel for the appellant would point out that the Hon ble Apex Court has only rejected the special leave petitions in limine, but he points out that it must be noted that no reasons were given. He, therefore, submits that there is no merger and it cannot, therefore, be taken that the Hon ble Apex Court has laid down the law in terms of the judgment of the Division Bench of this Court. 5. Learned counsel for the appellant would point out that this Court had, while discussing the issues, not considered the effect of the use of word or in Section 6(3)(d) of the Uttarakhand Value Added Tax Act (hereinafter referred to as the Uttarakhand VAT Act). We would extract Section 6(3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... size that the proviso, which refers to Clause (d) is not to be treated as a substantive provision in itself, which is what this Court did in the writ petitions filed by Hindustan Unilever Limited. In this context, he drew our attention to the judgment of the Hon ble Apex Court in the case of Satya Pal Singh vs. State of M.P. and others reported in 2015(10) SCALE 444. There, the Hon ble Apex Court was dealing with the question as to whether, a person, who is a victim within the meaning of Section 2 (wa) of the Code of Criminal Procedure, and would, therefore, come under the proviso to Section 372 of the Code, could maintain an Appeal without obtaining leave under Section 378 of the Code. In the context of the said question, the Court disagre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, inflated by the proviso, sins against the fundamental rule of construction that a proviso must be considered in relation to the principal matter to which it stands as a proviso. A proviso ordinarily is but a proviso, although the golden rule is to read the whole section, inclusive of the proviso, in such manner that they mutually throw light on each other and result in a harmonious construction. 7. We may notice that in the judgment of this Court, against which, the special leave petitions filed, proved unsuccessful, we had noted the aforesaid proposition of law, but this Court had found that the proviso involved in this case is an independent provision. This finding of the Court is to be appreciated in the context of the statute i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it, but confined to raw materials, which are used in the manufacture or processing of finished goods, which are sent by way of stock transfer as a case of stock transfer cannot be treated as a case of sale. In such circumstances, we would think that the proviso would appear to be an independent provision and the concept of sale would apply to both an intra-State sale, as also, inter-State trade and commerce within the meaning of Section 6(3)(d) of the Uttarakhand VAT Act. In other words, the case of stock transfer would not fall within the ambit of Section 6(3)(d) of the Uttarakhand VAT Act. The case of stock transfer is squarely covered by the proviso. No input tax credit is vouchsafed in respect of packing materials used in connection wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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