TMI Blog1991 (3) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... inter alia, carries on business to purchase foodgrains and to distribute and sell them at fair price to consumers. After purchasing the foodgrains the applicant is required to store them and while under storage the applicant is also required to protect them, and thereafter to sell them. It is the case of the applicant that for that purpose it requires the following goods: (i) Fogging sprayers, (ii) Fumigants, (iii) Insecticides, (iv) Pesticides, (v) Laboratory instruments, (vi) Fumigation covers, (vii) Tarpaulins, (viii) Nylon ropes, (ix) Patramats, (x) Fire-fighting equipments. The said goods were, however, not specified in the certificate of registration as originally issued to the applicant under section 7 of the Central Act, and therefore, the applicant was unable to purchase those goods on payment of concessional rate of sales tax under the Central Act to the selling dealer in terms of section 8(1)(b) read with sub-section (3) of section 8 of the Central Act because of its inability to furnish declarations in the prescribed form "C" to the selling dealer as required by sub-section (4) of section 8. (ii) The applicant, thereupon, filed four applications ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and therefore the "laboratory instruments" were also treated as items "for use by the applicant in the processing of goods for sale" within the meaning of section 8(3)(b) of the Central Act. (vi) However, with respect to fumigant covers, tarpaulins, nylon ropes and patramats, which were the goods covered for the second category, the Tribunal came to conclusion that those goods were required merely for the purpose of preservation of foodgrains in storage or to keep the foodgrains above ground level so that the foodgrains remain free from moisture. The Tribunal came to the conclusion that these goods were not meant for packing foodgrains for sale because the applicant sells the foodgrains in loose condition or in gunny bags and it does not sell them as packed in any manner. The Tribunal, therefore, came to the conclusion that the aforesaid four goods could not be included in the certificate and to that extent the application of the applicant for amendment of the certificate was rejected. (vii) As regards fire-fighting equipments the present applicant did not press the appeal before the Tribunal, and therefore, the orders passed by the Assistant Commissioner and the Sales Tax Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of registration of the registered dealer. The goods which could be specified in the certificate of registration could be separately classified as under: (i) goods being intended for resale; (ii) goods being intended for use by dealer in the manufacture or processing of goods for sale; (iii) goods being intended for mining; (iv) goods being intended for generation or distribution of electricity or any other form of power; (v) containers or other material intended for being used in the packing of goods for sale; (vi) containers or other material used in the packing of any goods or class of goods specified in the certificate of registration or in the packing of any container or other material referred to in the above referred category (v). 6.. In the present case, we are concerned with goods of category (v) mentioned hereinabove, namely, goods "intended for being used for the packing of goods for sale". Question that arises for our consideration is as to whether fumigation covers, tarpaulins, nylon ropes and patramats can be said to be the goods which are "intended for being used for the packing of goods for sale ". 7.. In order to answer this question, it is nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates or tin sheets under sub-section (3) of section 8 of the Central Sales Tax Act on the plea that those goods were used by the respondent for packing its vegetable products for sale. The said application for amendment of registration certificate was dismissed by the Sales Tax Officer and revision to the Commissioner of Sales Tax also failed. The lower authorities were of the opinion that the tin plates and/or tin sheets were not containers as they had to undergo manufacturing process before they could be used as containers. The lower authorities also held that they do not fall in the category of packing material because according to them the word "packing" was invariably used for holding solid contents. Matter was carried further by way of petition under articles 226 and 227 of the Constitution of India before the High Court. The High Court took the view that the words used in section 8(3)(c) of the Act were wide enough to cover tin sheets and/or tin plates. The High Court was of the opinion that if the intention of the dealer was to acquire them in order that they might be used for packing of goods for sale even after process of adopting them for such use they would remain packi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd by way of precautionary measures to prevent deterioration or decay of foodgrains. In fact, the said goods are not being used for the packing of goods "intended for sale". The Legislature has described the goods as goods "intended for being used for packing of goods for sale". The goods must be, therefore, the goods which are used for packing of goods for sale. The Legislature does not refer to packing simpliciter, but it refers to packing of goods for sale. Material which is used must be one which is used as packing of goods for sale. Therefore, any and every material which is used simply for the purpose of covering or protecting or preserving the goods and not as something that is attached to the goods for sale by way of packing cannot, in our opinion, fall within clause (c) of sub-section (3) of section 8 of the said Act. We are, therefore, of the opinion that the goods in question can, at the best, be said to be the goods which facilitate preservation or protection of foodgrains, and thereby, facilitate storing of foodgrains which will be, ultimately, sold by the applicant. Something that facilitates storage of goods for sale or something that facilitates sale cannot be said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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