TMI Blog1997 (3) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... 74-75. The 10C had filed returns of its turnover on the basis of a provisional price charged from its customers and paid tax on that basis. On the price being finally determined the 10C filed revised returns and paid the tax on the difference in the turnover. The assessing authority (AA) charged interest under section 11B, RST Act on the additional amount of tax so deposited. The 10C also sold high speed diesel (HSD) to the Rajasthan State Electricity Board (RSEB) on the strength of declarations in form ST-17 treating it as a raw material for generation of power. The AA held that the HSD sold by the 10C to the RSEB was not raw material and levied tax on such sales at the full rate. The 10C did not succeed in appeal or in revision to the BOR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder clause (a) of section 11B." 6.. This definitively settles the first question framed in the reference and applies with full force. The question has therefore to be answered in the negative, i.e., that interest shall not be chargeable under section 11B, RST Act. The additional tax became due only on the determination of the final price and therefore it could not have been paid earlier and therefore there is no case of delayed payment and therefore no interest was chargeable. 7.. As regards the second question the Supreme Court in Commissioner of Sales Tax, Madhya Pradesh v. M.P. Electricity Board [1970] 25 STC 188 (SC); 2 SCST 1872 had a matter before it which arose under the C.P. and Berar Sales Tax Act, 1947 and the M.P. General ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngible or cannot be moved or touched like, for instance, a piece of wood or a book it cannot cease to be movable property when it has all the attributes of such property. It is needless to repeat that it is capable of abstraction, consumption and use which, if done dishonestly, would attract punishment under section 39 of the Indian Electricity Act, 1910. It can be transmitted, transferred, delivered, stored, possessed, etc., in the same way as any other movable property. Even in Benjamin on Sale, 8th Edition, reference has been made at page 171 to County of Durham Electrical, etc., Co. v. Inland Revenue [1909] 2 KB 604 in which electric energy was assumed to be goods . If there can be sale and purchase of electric energy like any other mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds would come within the meaning of the term "manufacture". Further HSD being fuel would come within the meaning of the word "raw material". 10.. Section 5C, RST Act, read as: 5C. Concessional rate of tax for raw materials.-(1) Notwithstanding anything contained in this Act, but subject to such restrictions and conditions as may be prescribed, the rate of tax payable on the sale to or purchase by a registered dealer of any raw material for the manufacture in the State of goods other than exempted goods for sale by him within the State or in the course of inter-State trade or commerce or in the course of export outside the territory of India shall be at a concessional rate of 3 per cent of sale or purchase price of such raw material. E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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