The judgment of the Court was delivered by

A. P. RAVANI, J. - Under section 69 of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Act") the Gujarat Sales Tax Tribunal has referred two questions to this Court - one at the instance of the Revenue and another at the instance of the dealer. Applicant-dealer is a private limited company. It is manufacturing and selling radio and its spare parts and also television and its spare parts. For the assessment year commencing from April 1, 1975 to March 31, 1976, the Sales Tax Officer held that there was breach of declaration given in form 19 against which the dealer had purchased certain goods. Section 13(1)(B) of the Act, inter alia, provides for deduction of tax in certain cases. For availing of such deduction declaration in form 19 stating that the goods purchased shall be used in manufacture of taxable goods and that the taxable goods shall be sold within the State should be filed. The Sales Tax Officer found that the taxable goods were not sold within the State and thus there was breach of declaration. Therefore, the Sales Tax Officer levied purchase tax and also imposed penalty of Rs. 7,500 under section 45(1)