TMI Blog1968 (12) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1962 (Bihar Act 20 of 1962)] hereinafter to be called "the Act". 2.. Tata Iron and Steel Company Limited, the petitioner, hereinafter to be called "the company", is a public limited company having its head office at Bombay. The company manufactures and processes iron and steel and their by-products for sale at Jamshedpur. The company filed an application under section 6A of the Act and in the application it appended a list of goods for inclusion in the certificate thereunder. The learned Assistant Commissioner by his two orders allowed some of the items of goods to be included in the certificate of registration, but rejected the prayer for inclusion of other items. Against the orders of the Assistant Commissioner, the company moved the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary, 1965, with a direction to rehear the revision filed by the company and to dispose of the same in accordance with law. In the order, this court, after referring to the decisions of the Supreme Court in the cases of Indian Copper Corporation Ltd. v. Commissioner of Commercial Taxes, Bihar and Others[1965] 16 S.T.C. 259. and J.K. Cotton Spinning and Weaving Mills Co. Ltd. v. The Sales Tax Officer, Kanpur, and Another[1965] 16 S.T.C. 563., made the following observations: "Apparently, the Commissioner's attention was not drawn to the aforesaid decisions of the Supreme Court, which have a direct bearing on the question. The views taken by the Commissioner and the Deputy Commissioner are too narrow. We need not repeat the observations of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne Engines, (5) Spare parts for crane, (6) Spare parts for chipping hammers, (7) Screen vibrating and wire screen cloth, (8) Seal oil, (9) Wagon components and (10) Packing cotton yarn and flax. The petitioner has asserted that the items of goods mentioned above are directly required for the manufacturing and processing of steel and its by-products. In paragraph 42 of the application it has been stated in detail the use of each of the items of goods mentioned above in the manufacturing and processing of iron and steel by the company. With regard to the lamps (item No. 1), it has been stated that they are required for lighting various plants in the works which remain in operation round the clock. According to the petitioner, as it is not pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x packing are used to make the joints, etc., leak-proof. It has further been stated that packing is used as a sealing medium in steam engines and hydraulic equipments. I may state here that before the learned Commissioner an affidavit sworn by the Assistant Purchasing Officer of the company was filed. In the list attached with the affidavit 110 items of goods were mentioned and against each item of goods, the purpose for which that particular item of goods was used, was specifically stated. The 10 items of goods in question were mentioned as items Nos. 62, 84, 86, 87, 90, 93, 94, 97, 109 and 71 respectively. 4.. Mr. Rajeshwari Prasad, learned counsel appearing for the petitioner, submitted before us that the learned Commissioner was not ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate or the sales tax department before the Commissioner nor such an affidavit has been filed in this court. The learned Commissioner, as it appears from the impugned order, was conscious of the fact that the word "directly" which occurs in the Bihar Act does not find a place in the Central Act but he has allowed a number of items of goods similar to the 10 items of goods in question to be included in the certificate of registration under section 6A of the Act. In spite of the clear directions from this court in C.W.J.C. No. 1198 of 1966, he has not given any reason for disallowing the claim of the company in respect of the 10 items of goods. It is really difficult to appreciate the distinction which has been made by the learned Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as equipment necessary to effectually carry on the manufacturing process. We are not prepared to agree with the High Court that in order that 'electrical equipment' should fall within the terms of rule 13, it must be an ingredient of the finished goods to be prepared, or 'it must be a commodity which is used in the creation of goods'. If, having regard to normal conditions prevalent in the industry, production of the finished goods would be difficult without the use of electrical equipment, the equipment would be regarded as intended for use in the manufacture of goods for sale and such a test, in our judgment, is satisfied by the expression 'electricals'. This would of course not include electrical equipment not directly connected with t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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