KALPANA INDUSTRIES Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) BY this reference under Section 44 (1) of the M. P. General Sales Tax Act, 1958 (for short, the "act"), at the instance of the assessee, the Tribunal has referred the following question of law to this Court for its decision :

(2.) THE assessee is engaged in the business of manufacturing tungsten filaments and lead in wires in its registration certificate (sic ). Wires, copper and brass in all forms were mentioned as raw materials for the manufacture of electrodes and filaments. During the assessment period 7th November, 1972 to 25th October, 1973 the assessee purchased copper rivets from the registered dealers on declaration in form XII-A and sent them to Bombay for conversion thereof into wires, on job basis. On these facts, the assessing authority came to the conclusion that the assessee was not entitled to the concessional rate of tax under Section 8 (1) of the Act and accordingly imposed penalty on it under Section 8 (2) of the Act. The assessment order was upheld in the first appeal by the Additional Appellate Deputy Commissioner of Sales Tax. The second appeal filed by the assessee was dismissed by the Tribunal by holding that the entire process of manufacturing was not undergone in the State of M. P. and, therefore, the assessee was not entitled to the concessional rate of tax under Section 8 (1) of the Act. Being aggrieved, the assessee applied for a reference and accordingly the said reference was made to this Court by the Tribunal.

(3.) SECTION 8 (1) of the Act provides as follows: 8. (1) Notwithstanding anything contained in Section 6 but subject to such restrictions and conditions as may be prescribed, the tax payable under Section 6 on the sale by a registered dealer of any raw material other than tendu leaves and whole pulses, or incidental goods for the manufacture of other goods for sale in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India shall be levied at the rate of 3. 5 per cent in respect of raw material and 4. 5 per cent in respect of incidental goods of the sale price thereof :