9911796707
TMI Blog1963 (4) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... oods mentioned in the First Schedule. Further concession in the rate of tax is provided by sub-section (3) in respect of those goods in the first schedule provided the sale thereof by the dealer to another is for use by the latter as component part of any other goods mentioned in that schedule. Sub-section (3) reads: "Notwithstanding anything contained in sub-section (1) or subsection (2), the tax payable by a dealer in respect of any sale of goods mentioned in the First Schedule by such dealer to another for use by the latter as component part of any other goods mentioned in that Schedule, which he intends to manufacture inside the State for sale shall be at the rate of only one per cent. on the turnover relating to such sale." The words ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly filled in and signed by him or by any responsible person authorised by him in this behalf and shall retain the counterfoil." In respect of the purchase of groundnut oil made by the petitioners for use by them in the manufacture of either vanaspati or soap or both, as the case may be, they applied to the prescribed authority for the supply of blank declaration forms in Form XVII. The Commercial Tax Officer in the case of the petitioner in W. P. No. 445 of 1961, informed him by his communication dated 4th March, 1961, that the forms could not be supplied because in his opinion the goods mentioned in the application of the petitioner did not form separable component parts of such goods. The Commercial Tax Officer's order reads: "The ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while they form parts of some other goods and that all that is necessary to satisfy those words is that the articles should by their user go into the composition of any other goods in the first schedule. On the other hand, the learned Additional Government Pleader placing reliance upon the language of some of the items in the first schedule, contends that it is only those component parts which are identifiable even when they go into the composition of other goods, that will come within section 3(3). In other words what is stated for the department is that, if the component parts by their user in the process of manufacture of other goods lose their identity and become one beyond identification with the other goods, they would not be compone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may not be capable of any more separate identification. Equally, it may be that when a machinery is assembled out of several parts forming that machinery, those parts even after their being fitted may retain their individuality or identity. In such cases the parts or goods which go into the composition or assemblage of the other compound or mixture or some other article or machinery may properly be described as component parts of such machinery or article within the meaning of section 3(3) of the Act. This construction, I think, may also be justified by a reference to the language of the different items mentioned in the First Schedule. In the case of motor vehicles and their parts, the component parts fitted into the vehicle are certainly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned with the grant of rebate and for that purpose the question that arose for determination was whether vanaspati still retained its character as groundnut oil. This decision, however, it seems to me, will be of no assistance in deciding the present case. The First Schedule to the Act makes a distinction between vegetable oils and vegetable products which include vanaspati. Vanaspati should, therefore, be considered to be goods other than groundnut oil which goes into it as a component part. The learned Additional Government Pleader invited my attention to the decision, Union of India and Another v. The Delhi Cloth and General Mills, Co., Ltd. etc.Civil Appeals Nos. 168 to 170 of 1960, against the judgment of the Punjab High Court (Ci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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