RUBY LABORATORIES Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THE question involved in both these references is whether distribution of some of the manufactured goods as free samples amounts to any use, which is contrary to the purpose mentioned in the certificated issued in form No. 15 for the purpose of deduction contemplated by section 12(1)(b) of the Bombay Sales Tax Act, 1959 (hereinafter referred to as 'the State Act') or in form 'C' under section 8(4) of the Central Sales Tax Act, 1956 (hereinafter referred to as 'the Central Act').

(2.) SHORT facts leading to both these references are as under : The applicant in both references is a firm known as M/s. Ruby Laboratories. It is manufacturing medicines for sale and is registered under the State Act as well as the Central Act. It also hold recognition certificate contemplated by the section 12 of the State Act and, therefore, there is no dispute about the fact that it is a recognised dealer within the meaning of section 2(23) of the State Act. It is found that during the assessment period, the applicant made certain purchases by issuing 'C' forms under the Central Act. These purchases were made by the applicant for the manufacture of taxable goods for sale. At the time of purchasing these goods for the purpose of manufacture, the applicant is also found to have given a certificate in form No. 15 as contemplated by section 12(1)(b) of the State Act.

(3.) BEING aggrieved by this decision of the Sales Tax Officer, the applicant -assess preferred two different appeals before the Assistant Commissioner of Sales Tax but was not successful. It thereafter preferred two second appeals against each of the orders of penalty before the Tribunal but there also it failed.