TMI Blog1999 (4) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... UCHA S.P., KIRPAL B.N., RAJENDRA BABU S., SYED SHAH MOHAMMED QUADRI AND SHAH M.B. JJ. S.K. Agnihotri, Sapam Biswajit Metei, Ms. Sultana Sonawane and Mrs, madhur Dadlani, Advocates, For the appellant. K.V. Mohan, Advocate, for the respondent -------------------------------------------------- ORDER By the order dated 9th April, 1997 this appeal was directed to be placed before a larger Bench Commissioner of Sales Tax v. Rewa Coal Fields Ltd. (1997) 7 SCC 155. This was because the respondent contended that the point at issue was concluded by the principles laid down in Tata Engineering Locomotive Company Ltd. v. State of Bihar [1995] 96 STC 211 (SC); (1994) 6 SCC 479. The aforesaid was a case under the Bihar Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... coal mine, which is a manufacturing activity for the purposes of the said Act. It sought registration for the purposes of section 8 of the Act, which deals with the set-off or refund of tax in respect of tax-paid goods in certain circumstances, of the following on the ground that they were raw materials consumed in the course of manufacture, covered by the afore-quoted definition: timber, kerosene oil, drilling bits, hewing implements of all kinds, dry cells, torches, cement and lime and electrical bulbs. The Sales Tax Officer and the Commissioner of Sales Tax declined to register these as raw materials. The Commissioner found that the timber was used in the mine to prop up its walls. It was only a supporting device and it was not consumed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C 282 (SC); (1989) 4 SCC 566, none of which is apposite to the precise definition with which we are concerned. It seems to us clear that, drilling bits apart, none of the articles aforementioned can qualify to be articles "consumed in the process of manufacture" or, to put it in a different way, consumed in the mining of the coal. They may be used for purposes incidental to the mining, but are not integral thereto. 6.. So far as drilling bits are concerned, they are used to bore, holes in the walls of the mine; the holes are stuffed with explosives and the detonation thereof yields the coal. Their utility is quickly exhausted. It can, therefore, be said that they are consumed in the mining of the coal. To that extent alone can the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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