TMI Blog1981 (12) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... facts, as found by the Tribunal, which are set out hereunder. The assessee is a dealer registered under the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Act"). The assessee carries on the business of manufacturing and selling chemicals and is a "certified manufacturer" who has established a "new industry" within the meaning of entry 53(1) of the Government notification dated 11th November, 1970, issued in exercise of the power conferred by sub-section (2) of section 49 of the Act. During the accounting period from 29th January, 1973, to 30th June, 1973, the assessee purchased the following articles: (1) Deoxidised copper ethyl acetate purification unit with copper kettle and packed column No. 1; (2) Copper deoxidised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above. In order to appreciate the controversy between the parties, it is necessary to reproduce the material part of rule 42-A of the Rules, which reads as under: "42-A. Drawback, set-off or refund of tax for goods Purchased by a certified manufacturer establishing a new industry.-In assessing the tax payable by a certified manufacturer (hereinafter referred to as the 'assessee') who establishes a 'new industry' the Commissioner shall, subject to the general conditions of rule 47 and further conditions specified below, grant him a drawback, set-off or refund of the whole or any part of the tax in respect of the purchases of raw materials, processing materials and machinery or packing materials used by him in manufacture of goods for sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vity. It is true that taken by themselves these tanks or units have no mechanical contrivance. However, these form a part of a bigger machinery which may be called a processing unit. Even though these tanks or units are not machineries by themselves, nevertheless without these tanks or unit, the machinery would be incomplete and cannot function...... What we hold is that these items go into the making of a big processing unit which can be called machinery and that adopting the meanings of machinery given in certain dictionaries referred to above, even though these may be termed as integral parts of machinery, they can be regarded as machinery." On the findings recorded by the Tribunal, it is clear that the articles purchased by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the third proviso to section 101 of the Bengal Municipal Act, 1884. At page 29, the Judicial Committee observed that it was not an easy task to define the meaning of the word "machinery" in the absence of the definition of the said term. At page 31 are the following pertinent observations as to the meaning of the said word in its ordinary sense: "A completed machine or a number of completed machines may, of course, according to the ordinary use of language, be properly described as 'machinery', so may those Parts or members of a machine which when assembled, as it is styled, form a complete machine so also may some such of those parts, which when assembled with the other necessary parts, would form a complete machine be styled 'machinery' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hole or holes in its side into pipes only by the force of gravity which was not a force that was generated, modified, directed or applied to the tank, cannot properly be called "machinery". In Ambica Wood Works v. State of Gujarat [1979] 43 STC 338 the question was whether screen print block tables of wood which were sold to different textile mills for use in the process of screen printing were covered within the meaning of the expression "machinery used in the manufacture of goods, and spare parts and accessories thereof " used in entry 15 of Schedule C to the Bombay Sales Tax Act, 1959. The court consisting of my learned brother and myself there held, speaking through my learned brother, as under: "It is no doubt true that mere ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be applicable to all cases irrespective of the facts and circumstances of each case. For the purposes of this case, we will only emphasise some of the aspects which have been brought into sharp focus by the meaning assigned to the said term in the decision of the judicial Committee. An article to be machinery in its ordinary sense must be: (i) a completed machine or a number of completed machines, or (ii) parts or members of a machine which, when they are assembled, form a complete machine, or (iii) some such of those parts which, when they are so assembled with the other necessary parts, would form a complete machine. The emphasis obviously is on an article or on a number of articles which is or are a complete whole or on the different pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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