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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 ..... b) of the 1956 Act has been revived. 2. FOUNDATIONAL FACT MATRIX: 2.1 Appellant-Assessee is a Private Limited Company. It is registered as a dealer both under the provisions of 2003 Act and 1956 Act. It is engaged in the manufacture and sale of pharmaceuticals. The ACCT with his team conducted spot inspection of Assessee's business premises and discovered that the Assessee had effected inter-State purchases of goods not specified in the Assessee's Registration Certificate. 2.2 On the basis of Inspection Report 31.10.2014, the ACCT had issued notice dated 12.05.2016 u/s.10A of the 1956 Act proposing penalty at the statutorily specified rate. The Assessee filed his reply denying the allegation stating that a registered dealer is eligible to avail concessional levy of CST by issuing C-Forms against the purchases of goods that are intended for resale or for use in the manufacturing or for processing for resale as provided u/s. 8 (3) (b) of the Act. This reply was not agreed to and the ACCT found violation of the provisions of Sec. 8 (3) (b) on the ground that the very issuance of C-Forms was illegal since the subject goods do not answer the kind of goods enumerated in the Registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded certificate and therefore, had set aside the Penalty Order; this order could not have been set at naught by the Addl. CCT for no reason or rhyme. In support of his contention, he banks upon a Coordinate Bench decision in M/s. Kalaburagi Cements Pvt Ltd., Vs. Addl. Commissioner Commercial Taxes 2017 SCC OnLine KAR 4412. 4. Learned AGA Mr. Aditya Vikram Bhat appearing for the Revenue resists the appeal with equal vehemence making submission in justification of the impugned order and the reasons on which it has been constructed. The thrust of his submission is that the subject goods which the Assessee admittedly had bought do not fit into the class of goods enumerated in the amended Registration Certificate; and further, the Assessee has not used these goods for the manufacture, resale or for processing for the purpose of resale; there is a wealth of material which the Addl. Commissioner has rightly considered to come to a conclusion that these goods have been utilized for the construction of Assessee's building. He adds that in interpreting the class of goods mentioned in the amended Registration Certificate, the rule of ejusdem generis; the goods enlisted have a genus & specie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority: Provided that the declaration is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit." 5.3 The relevant form, namely Form-C is prescribed pursuant to Rule 12 of the CST (Registration & Turnover) Rules 1957. Thus, a Registered dealer purchasing the goods is eligible to avail concessional levy of CST by issuing C-Forms against the purchases of goods which are included in its Certificate of Registration and are intended for resale, for use in the manufacture or processing of goods for sale. The legislative intent is very clear. Such a concession cannot be availed if the goods bought by the Assessee are not included in its Certificate of Registration and are not used in the manner prescribed in Section 8 (3) (b). In the current context, the purchased goods ought to have been used in the manufacture or processing of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that buildings must be constructed for housing the factory in which machinery is installed. Whether a building is a "plant" within the meaning of Rule 13, is a difficult question on which no opinion need be expressed. But to qualify for specification under s. 8 (3) (b) goods must be intended for use of the nature mentioned in Rule 13, in the manufacture of goods. Building materials used as raw materials for construction of "plant" cannot be said to be used as plant in the manufacture of goods. The Legislature has contemplated that the goods to qualify under s. 8 (3)(b) must be intended for use as raw materials or as plant, or as equipment in the manufacture or processing of goods, and it cannot be said that building materials fall within this description" In this background, the vehement submission of learned counsel for the Assessee that the subject goods even if utilized for the building of the structure, his client will be entitled to concessional benefits, runs counter to the statutory policy enacted in Rule 13 of Central Sales Tax (Reign and turnover) Rules, 1957, which has the following text: "The goods referred to in clause (b) of sub-section (3) of Section 8 which a re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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