1992 (10) TMI 240 - SUPREME COURT

Whether the learned Judge was not right in holding that the taxable event under the section is not the purchase of goods used in the manufacture of end-products but the despatch of manufactured goods to out-State destinations?

Held that:- Appeal dismissed. The levy is waived where the manufactured goods are sold within the State, or sold in the course of inter-State trade or commerce or sold in the course of export. It is retained and collected where the goods are taken out of Maharashtra State by way of consignment, in which event the State sees no reason not to retain and collect the levy on purchase of raw material. The provision is substantially similar to section 9 of the Haryana Act. Whatever we have said with respect to the Haryana provision applies equally to this provision of the Bombay Sales Tax Act.