Weighing and testing machines used in the manufacturing process are entitled to deduction under Section 5(2)(a)(ii) of the Bengal Finance (Sales Tax) Act, 1941.

( 1 ) THE petitioner, M/s. Avery India Limited (hereinafter referred to as the said petitioner) was incorporated under the provisions of the Indian Companies Act, 1913, and has its registered office and carries on business, inter alia, at 28/2, Waterloo Street, Calcutta. Such business has been stated to be consisting in the manufacture and sale of weighing and testing machines of various descriptions, and the parts thereof. The said petitioner has also been stated to be duly registered under the provisions of the Bengal Finance (Sales Tax) Act, 1941 (hereinafter referred to as the said Act) and has also been stated to be assessed regularly to sales tax.

( 2 ) IN respect of the period containing the four quarters ended 31st December, 1960, the said petitioner claimed a deduction under the provisions of Section 5 (2) (a) (ii) of the said Act to the tune of Rs. 5,51,014. 40 and Rs. 71,478. 70 and thus for a total sum of Rs. 6,22,493. 10 in respect of the goods which were claimed to be sold to registered dealers under the provisions of the said Act and which have been claimed to be used, directly in the manufacture of goods for sale in West Bengal. It was the case of the said petitioner that during the assessment proceedings for the period, as mentioned hereinbefore, before the Commercial Tax Officer, they duly explained the basis on which the concerned deductions were claimed in respect of the weighing and testing machines and parts thereof, which in short, were claimed to have been sold by the said petitioner to registered dealers. It has also been stated that the said petitioner further explained that the said weighing and testing machines were attached to the manufacturing plant at various points and without weighing and testing materials at various stages of the process, no manufacture could be possible. The said petitioner has also stated to have produced all relevant declaration forms from the concerned registered dealers, who according to them, inter alia, declared that the goods sold by the said petitioner fell within the relevant description as contained in the certificate of registration and were used in the manufacture of goods for sale in the manner as indicated hereinbefore.

( 3 ) IT has been stated that in spite of the above position, the Commercial Tax Officer concerned disallowed the claim in respect of the sum of Rs. 5,51,014. 40 and that too in spite of declaration in form XXIV having been produced, on the ground that the weighing and testing machines could not be admitted or concerned to be required for sale. It has also been stated that the said Commercial Tax Officer made further disallowance of the other sum of Rs. 71,478 as mentioned above from the claim under Section 5 (2) (a) (ii) of the said Act on the ground that the purpose of purchase had not been indicated in the declaration forms XXIV. From such assessment, the said petitioner preferred an appeal before the Assistant Commercial Tax Officer, who upheld the order of assessment on the grounds as mentioned by the Commercial Tax Officer concerned, and on revision thereafter, the Additional Commissioner by his order dated 16th June, 1971, set aside the impugned order with a direction upon the Commercial Tax Officer concerned, to make a fresh assessment after allowing the said petitioner an opportunity of being heard. Such order has been disclosed as annexure A to the petition. From a reference to the order as made, it would appear that in respect of the disallowance of Rs. 5,51,014, the Additional Commissioner concerned directed that the Commercial Tax Officer should verify whether the goods sold by the said petitioner, were covered by the registration certificates of the purchasing dealers, and stated "unless the assessing officer established that the goods purchased were not included in the registration certificate, the claims will have to be allowed on the declaration in form XXIV, no matter how the goods were eventually used". In resp