STATE OF GUJARAT Vs. MINU CHEMICAL PVT LTD

JUDGEMENT

(1.) THE Gujarat Sales Tax Tribunal (hereinafter referred to as "the Tribunal") has referred the following question of law for the opinion of this Court : " Whether, on the facts and in the circumstances of this case, the Tribunal was right in law in holding that the disputed items are of 'machinery' in the case of a chemical plant which is a new industry and thus allowing set-off thereon under rule 42-A of the Gujarat Sales Tax Rules, 1970 ?"

(2.) THE question requires to be answered against the background of facts, as found by the Tribunal, which are set out hereunder.

(3.) IN order to appreciate the controversy between the parties, it is necessary to reproduce the material part of rule 42-A of the Rules, which reads as under : " 42-A. Drawback, set-off or refund of tax for goods purchased by a certified manufacturer establishing a new industry.- IN assessing the tax payable by a certified manufacturer (hereinafter referred to as the 'assessee') who establishes a 'new industry' the Commissioner shall, subject to the general conditions of rule 47 and further conditions specified below, grant him a drawback, set-off or refund of the whole or any part of the tax in respect of the purchases of raw materials, processing materials and machinery or packing materials used by him in manufacture of goods for sale. "