DWARKESH ENGINEERING WORKS Vs. ASSISTANT COMMISSIONER COMMERCIAL TAXES

JUDGEMENT

(1.) The petitioner No. 1, Dwarkesh Engineering Works, is a partnership firm and its business is manufacture and sale of steel castings. The petitioner No. 2 is one of its partners. The workshop of the petitioner is situated at Madhyamgram, 24-Parganas, West Bengal.

(2.) The petitioner No. 1 is a registered dealer under the Bengal Finance (Sales Tax) Act, 1941, as well as the Central Sales Tax Act, 1986. The petitioner claims that its manufacturing unit is "a newly set up small-scale industry" and as such, the sale of goods produced by this unit is entitled to be deducted from its gross turnover by virtue of Rule 3(66a) of the Bengal Sales Tax Rules, 1941. Rule 3(66a) provides :

(3.) In calculating his taxable turnover a dealer liable to pay tax under Section 4 or 8(3) of the Act may deduct from his gross turnover, his turnover on the following, namely :-...