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TMI Blog2025 (1) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) (b). In the current context, the purchased goods ought to have been used in the manufacture or processing of goods for sale and not utilized in the construction of building or for office interiors of the Assessee. The record does not show any effort on part of the Appellant Assessee to actually demonstrate that his purchases meet the test of "integral connection" to the ultimate production of goods. It is one thing to say so repeatedly and it is another to prove the integral connection. The test of integral connection is laid down by the Hon'ble Supreme Court in JK COTTON [1964 (10) TMI 2 - SUPREME COURT] - this judgment is placed by the Appellant Assessee himself in his compilation filed across the Bar. When the Apex Court has dealt with building material specifically in JK COTTON and held it to be ineligible for the purposes of Section 8 (3) (b) of the 1956 Act, there is very little room for the Appellant to maneuver. Conclusion - The necessity of adhering to the specific categories of goods listed in the Registration Certificate for concessional tax rates under the CST Act. The goods must be used in manufacturing or resale to qualify for concessional rates. The impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 69 (1) of 2003 Act came to be negatived vide Endorsement dated 16.01.2018. 2.3 Aggrieved by the Penalty Order and the Endorsement, the Assessee preferred an Appeal before the JCCT (Appeals)-4 u/s. 9 (2) of the 1956 Act r/w Sec. 62 of 2003 Act. The Appeal came to be allowed vide order dated 12.06.2018 recording a finding that the category of goods purchased by the Assessee as per the Reassessment Orders were found to be in the nature of capital goods utilized by him in the business activity and they match with the category of goods vide B-53 Code enlisted in the Registration Certificate since 2009 till the period of assessment. 2.4 The Addl. Commissioner of Commercial Taxes, Zone-II, Bangalore took up the matter in exercise of suo moto revisionary powers u/s. 9 (2) of 1956 Act r/w Sec.64 of 2003 Act. Having issued a proposition notice and having heard the Assessee, he set aside the order dated 12.06.2018 of JCCT Appeals by his order dated 26.09.2019. Now this appeal from the revisionary order is at our hand. 2.5 A Co-ordinate Bench of this Court had admitted the Appeal vide order dated 10.01.2023 on the following questions of law: "1. Whether the impugned order passed by the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arguing that it essentially related to mining, where different considerations figure. So contending, he seeks dismissal of the Appeal. 5. Having heard the learned counsel for the parties and having perused the Appeal papers, we decline indulgence in the matter answering the framed questions of law against the Assessee and in favour of the Revenue for the following reasons: 5.1 The first submission of the learned counsel appearing for the Assessee that goods in question bought by his client during the relevant period answer the description of those specified in the amended Registration Certificate issued on 04.02.2009 is difficult to agree with. The said Certificate on its blurb, has the following contents: CST COMMODITIES-ANNEXURE TIN:29510220067 CST Act, 1956: COMMODITIES LIST Sub-Category Code Commodity Description B 53.01 PHARMA PRODUCTS INCLUDING CAPTIAL GOODS {10/02/2004} B 62.01 CARTON BOXES {10/02/2004} 5.2 Section 8 of the 1956 Act, in so far as it is relevant to this matter, reads as follows: "8. Rates 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, sells to a reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l as the order in suo moto revision, it becomes clear that the Assessee has issued C Forms in respect of the following items: "• Clean room accessories and room accessories including pre-fabricated clean rooms. • Glass-ware for factory doors housing raw materials and components. • Room accessories and clean room accessories including the following items; Hi Pharma walkable False Ceiling (Nicomac Clean Rooms), Hi Pharma Double Skin Walls, Glasses, Grills, Aluminium Coving, 90 Degree Corners, Single sliding doors, Double doors View Glasses on doors, Change Lockers, Apron Cup Boards." By no stretch of imagination, it can be assumed that these goods answer the description found in the Certificate of Registration. Mr. Aditya Vikram Bhat is right in his submission that the description at Sub-Category (b) Code 53.01 is "PHARMA PRODUCTS INCLUDING CAPITAL GOODS". The expression "Pharma Products" is genus and the expression "including Capital Goods" that follows it is, species. In other words, the goods should have the characteristics of genus i.e., Pharma products. Otherwise, any goods would fit into the inclusive category and that would defeat the very legislative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chinery, plant, equipment, tolls, stores, spare parts, accessories, fuel, or lubricants in the manufacture or processing of goods for sales or in mining, or in the generation or distribution of electricity or any other form of power." The above Rule has to be construed in the light of Section 8 (3) (b) of the 1956 Act which we have already extracted above. 5.6 There is one more aspect of the matter that Mr Bhat, AGA draws our attention to. The record before us does not show any effort on part of the Appellant Assessee to actually demonstrate that his purchases meet the test of "integral connection" to the ultimate production of goods. It is one thing to say so repeatedly and it is another to prove the integral connection. The test of integral connection, we note is laid down by the Hon'ble Supreme Court in JK COTTON supra. We also note that this judgment is placed before us by the Appellant Assessee himself in his compilation filed across the Bar. When the Apex Court has dealt with building material specifically in JK COTTON and held it to be ineligible for the purposes of Section 8 (3) (b) of the 1956 Act, there is very little room for the Appellant to maneuver. However, Mr. Bh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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