9911796707
TMI Blog1988 (5) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... ances of the case, the Tribunal was justified in setting aside the tax and penalty imposed in respect of sales made by M/s. Sardul Textiles Mills in its canteen account under section 16(1)(c). The Commercial Taxes Officer by his order dated 12th October, 1976 determined the tax liability in respect of the canteen sales to the tune of Rs. 450 and imposed penalty of Rs. 900 for non-submission of the quarterly returns and further found that the assessee purchased silicate, tinopole and caustic soda to the tune of Rs. 33,622 under section 5C against the S.T. form No. 17. These articles were not raw materials as none of them became ingredients of the finished product and as such after notice to the assessee, imposed a penalty of Rs. 2,950 under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal, this aspect ought to have been examined as to whether the three commodities became ingredients of the finished products or not. This Court had an occasion to consider the question, that is, what is the correct meaning of the expression "raw material". In this connection, reference may be made to Commercial Taxes Officer, Pali v. Lodha Fabrics, Pali a case reported in [1988] 71 STC 204 (Raj); (1988) 24 STL 241 (Raj). In the light of the aforesaid decision the matter requires further examination and consideration. It would not be proper for this Court to enter into this controversy in this revision petition. It would be for the Tribunal to examine this question. As regards the second question relating to tax liability and liability fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me relation with the facts also, so, it would be proper that an opportunity may be afforded to the parties to bring to the notice of the Tribunal all necessary facts for determining the issues, which they want to agitate in the light of the provision of section 6. Thus, it would be proper that the matter may be sent back to the Tribunal to examine the above questions. In the result, this revision is allowed, the order of the Tribunal is set aside and the matter will go back to the Tribunal with the direction that the Tribunal shall decide the appeal afresh in accordance with law, after giving an opportunity of hearing to both the parties on the aforesaid questions. It would be open to the parties to produce relevant material and evidence f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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