Goods intended for use in the manufacturing process as specified in Rule 13 qualify for special treatment under the Central Sales Tax Act.

( 1 ) THE Kisan Sahkari Chini Mills Ltd. , Budaun, has filed the present revision against the order dated March 16, 1991, passed by the Sales Tax Tribunal, Haldwani Bench, Haldwani, in Second appeal No. 621 of 1990 (assessment year 1986-87 ).

( 2 ) THE facts of the case in brief are that the applicant is a registered dealer under the provisions of the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act") and is engaged in the business of manufacture and sale of sugar, by-products and its waste products, etc. It had applied for grant of registration certificate in respect of various items including steel, cement and paints, which were to be used by the applicant in the manufacture of sugar and other products. The assessing authority vide order dated December 7, 1987 disallowed the registration in respect of steel, cement and paints. The applicant preferred an appeal under Section 9 of the Act before the assistant Commissioner (Judicial), Sales Tax, Haldwani, who vide order dated September 15, 1989 had rejected the appeal.

( 3 ) FEELING aggrieved by the said order, the applicant preferred an appeal under Section 10 of the act before the Tribunal, which too has been dismissed by the Tribunal by the impugned order.

( 4 ) I have heard Sri Rajesh Kumar, learned counsel for the applicant and Sri S. D. Singh, learned standing counsel appearing on behalf of respondent.

( 5 ) THE learned counsel for the applicant submitted that cement was required by the applicant for fixing the machinery, whereas steel was required for use in the boiler and paints were required for the protection of the machinery. He submitted that all the aforesaid three items are connected with the manufacturing. According to the learned counsel for the applicant, the Tribunal had accepted that all the three items play some role in the manufacturing, but did not allow the benefit on the ground that they are not directly used in the manufacturing process. He submitted that the benefit of Section 8-A of the Central Sales Tax Act, is not confined to those items, which are directly required for the manufacturing, but the benefit is also available to those goods which are required for the manufacturing purposes and play some role. He submitted that under Rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957 (hereinafter referred to as "the rules") stores is also included and, therefore, the aforesaid three items being stores is liable to be included in the list of goods, which the applicant can purchase against declaration form C.

( 6 ) SRI S. D. Singh, learned standing counsel on the other hand submitted that by no stretch of imagination, steel, cement and paints can be said to be goods, which are used in the manufacture of sugar and, therefore, they have rightly been disallowed.

( 7 ) FOR appreciation of the rival contention raised by the learned counsel for the parties, it is necessary to reproduce Sections 7 (1), 8 (1), 8 (3) (b) of the Act and Rule 13 of the Rules which read as follows :

"7. Registration of dealers.-- (1) Every dealer liable to pay tax under this Act, shall, within such time as may be prescribed for the purpose, make an application for registration under this Act to such authority in the appropriate State as the Central Government may, by general or special order, specify, and every such application shall contain such particulars as may be prescribed.

( 8 ) RATE of tax on sales in the course of inter-State trade or commerce,--

(1) Every dealer, who in the course of inter-State trade or commerce,- (a) sells to the Government any goods ; or (b) sells to a registered dealer other than the Government goods of the description referred to in sub-section (3) ; (3) The goods referred to in Clause (b) of Sub-section (1)- (a) Omitted ; (b ). . . . . . . . . . . . . . . . . . . . . . . . . are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods