TMI Blog1994 (10) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... arises for consideration in this appeal is whether any raw-material including those which were otherwise finished products used by the appellant in manufacture or processing of commercial vehicles, spare parts and other engineering products were, `industrial raw-aterial (inputs) within the meaning of the expression used in the Notification issued by the State Government on 12th April, 1982 in exercise of its power under Section 13(1)(b) of the Bihar Finance Act, 1981. 2. The appellant, a registered dealer, under the Central Sales Tax Act, 1956 and the Bihar Finance Act, 1981 for purpose of manufacturing and pro- cessing its products, namely, motor vehicles, trucks and bus chassis, excavators and other engineering products, purchased comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rials. To be very clear items of inputs which are in a finished state and are just to be fitted in the chassis without any further modifications etc., which are not undergoing any further process of manufacture are not Industrial raw materials and are merely fittings. The purchases of such fittings to bring a chassis in saleable condition are not covered by the aforesaid notification No. SO-604, dated 12-4-1982". The appellant challenged this order by way of a writ petition in the High Court which was dismissed by the Division Bench and it was held that the claim of the appellant that the Notification should be so read as to extend to all the goods required for use in manufacture or processing as contemplated by Section 13(1)(b) and not o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of goods used for manufacture or processing by a registered dealer in the State. The expression used was of wide import. Similar expressions used in taxing statutes have been construed to be of expansive nature. In J.K. Cotton Spinning Weaving Mills Co. Ltd. v. S.T. Officer, Kanpur Anr. (1965) 1 SCR 900 it was held that the expression, in the manufacture of goods would normally encompass the entire process carried on by the dealer of converting raw materials into finished products. The Court observed that where any particular process was so integrally connected with the ultimate production of goods that but for that process, manufacture or processing of goods would be impossible or commercially inexpedient then the goods required i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That would depend on the construction and understanding of the expression `industrial raw-material (inputs) used in the Notification. The word `raw-material has not been defined in the Act. It has, therefore, to be understood in the ordinary and well accepted connotation of it in the common parlance of the persons who deal with it. According to dictionary, it means `something which is used for manufacturing or producing the goods . The ordinary common sense understanding of it is that it is something from which another new or distinct commodity can be produced. When it is used in a taxing statute it may have related meaning depending on the context in which it has been used. In Collector of Central Excise, New Delhi v. Ballarpur Industri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be entitled to concessional rate of tax provided it was useable in manufacture or processing of goods. Reading of the Notification in any other manner would not be in harmony with the Section. The effort of the learned counsel for the State to argue that the concessional rate of tax under the Notification was available to raw-material commonly understood and it could not extend to such items which were otherwise finished products, proceeded on misconception. The special rate of tax could be levied on any goods used in the manufacture. But the Government restricted it to raw materials. Yet the Notification having been issued under Section 13(1)(b), the benefit would extend to every raw-material used in the manufacture of goods. In oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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