The judgment of the Court was delivered by

A. P. RAVANI, J. - This is a reference at the instance of the dealer registered under the appropriate provisions of the Gujarat Sales Tax Act, 1969. The dealer is a partnership firm. It carries on its business of manufacture and selling of hair-oil, agarbatti, masala for hair-oil in the form of padi (small packets). Since it is a manufacturer, it also holds recognition certificate under section 32 of the Act, which enables it to purchase raw and processing materials and consumable stores on the declaration being made in form 19 without payment of tax so that it can use the goods so purchased in the manufacture of taxable goods. The declaration in form 19 is to be effect that the goods purchased will be used as raw/processing materials or consumable stores in the manufacture of taxable goods for sale and that such sale shall not take place outside the State of Gujarat.

2. During samvat year 2029, the dealer purchased wooden boxes or cartons for Rs. 23,166 from unregistered dealers and used the same in packing of its various finished products. Such goods were dispatched for sale in the course of inter-State trade or commerce. It was