Forgot password
New User/ Regiser
⇒ Register to get Live Demo
2007 (1) TMI 187 - SUPREME COURT
Whether the use of articles or commodities not generally used in the manufacturing process can still be categorized as raw materials for the purpose of concession in the levy of taxes?
Held that:- To avail the concessional rate of tax under Section 10, the assessee has to satisfy 3 conditions he must be a registered dealer of any raw material;raw material must be used for the manufacture of goods; and the said manufacture in the State should be for the purpose of sale by him within the State or in the course of inter-State trade or commerce or in the course of export outside the territory of India.
As the respondent before us satisfy all the above tests and, therefore, the assessee-respondent, in our opinion, shall be entitled to such concessional rate as may be notified by the State Government.
The respondent-assessee used diesel as raw material for the manufacture of the end-product, namely, yarn and fabric. The diesel used by the assessee is a fuel and lubricant as defined under Section 2(34) of the Sales Tax Act. Thus the arguments advanced by learned counsel for the appellant has no force and merit. Appeal dismissed.