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2012 (11) TMI 696 - HC - VAT and Sales TaxConcessional levy of entry tax on Raw materials used in Manufacturing Process – As per Rule 3(4) of Rules, 1999, If the scheduled goods are used as raw material by a manufacturer and a declaration in Form E-15 is furnished by such manufacturer to the seller, he is entitled to Concessional levy of entry tax. Regarding Sale of finished goods outside the state - held that:- There is nothing in Rule 3(4) or declaration given in Form E-15 that in order to avail the concessional rate in terms of Rule 3(4), manufacturer is required to sell the finished products inside the State and he will be disentitled to avail the concessional levy of tax in terms of Rule 3(4) if the goods are dispatched/transferred to outside the State. - party no.2 has no authority/power to import any condition into the Rule 3(4) of Rules, 1999 as the same results in legislation which is clearly impermissible under law. Regarding stock transfer / branch transfer - held that:- the benefit of concessional levy under Rule 3(4) cannot be denied to the petitioner on the ground of transfer of manufactured goods to the branches situated outside the State. Regarding use of coal as raw material in manufacturing of electricity - held that:- the coal is not a raw material of end product, i.e., sponge iron, billets and H.R. coil.14 - Petitioner is not entitled to avail concessional levy of entry tax on purchase of coal which is used to generate electricity in the captive plant. - Decision in the case of [Union of India v. Ahmedabad Electricity Co.Ltd. and others,2003 (10) TMI 47 - SUPREME COURT OF INDIA] followed. Return of goods sold outside state - held that:- It is the duty of the petitioner to show how the petitioner dealt with those finished products returned to its plant. If the petitioner could establish that entry tax has been collected on sale of those goods inside the State, no further entry tax is leviable. Otherwise, it is always open to opposite party no.2 to complete the assessment in accordance with law - matter is remanded back to the Assessing Officer to redo the assessment in terms of the observations/direction - In result, writ petition is allowed in part.
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