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2014 (7) TMI 740 - PUNJAB AND HARYANA HIGH COURTDisallowance of rebate under the Haryana General Sales Tax Act - Assessee contends that packaging material such as corrugated boxes, etc., and other material for packing of crockery is purchased after payment of sales tax and as this packing material is exigible to tax at the first stage of sale in terms of section 18 of the Act, it is entitled to rebate under rule 24(3) of the Haryana General Sales Tax Rules, 1975 - thus, the assessee is entitled to rebate - Whether the manufacturer is entitled to rebate of sales tax paid on purchase of material used for packing of crockery manufactured by it under provisions of the Act - Held that:- crockery items manufactured by the petitioner need to be packed in durable packing to ensure that they withstand and survive the rigours of transportation. It is also not in dispute that polythene bags, tissue papers and corrugated boxes, etc., are purchased by the petitioner after paying sales tax for packing of its products. Section 15A deals with "reduction or refund of tax in certain cases". The last two lines of this Explanation have been underlined to emphasize the significance thereof. There does not remain any doubt that packing material used for packing of manufactured goods has also been included in the term the goods used in manufacture on the same terms as raw material, processing material, fuel or lubricants which are actually used in the manufacturing of goods. - After going through the Explanation (appended to section 15A of the Act) which became available for benefit of the dealer retrospectively, there does not remain any dispute that adjustment, on the purchase made by the petitioner against payment of tax at the first stage, is very much available retrospectively from May 27, 1971. The Tribunal did not have the benefit of the amendment. The State has not contested the amendment of section 15A of the Act - Decided in favour of assessee.
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