TMI Blog2022 (7) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... spect thereof, and if the applicant satisfied such requirements including requirement of depositing lat fee, and conditions as may be prescribed, the assessing authority shall grant to him in respect of such goods a recognition certificate in such form and subject to such conditions, as may be prescribed. The Apex Court in the case of Coastal Chemicals Ltd. Etc. [ 1999 (10) TMI 599 - SUPREME COURT ] has clearly stated that word 'consumables' refers only to material which are utilized as an input in the manufacturing process namely 'raw material', 'component part', 'sub-assembly part' and 'intermediate part' etc. Thus, in the present case, it is noticed that 'Paints' are not utilized either as raw material or processing material such as raw material, plant, machinery, equipments, spare parts, but as per the revisionist 'paints' are utilized only for maintenance of plant and machinery - It is also clear that 'Paints' are not used as input in the manufacturing process of sugar and hence clearly they are not consumed in the process of manufacture of sugar and are also not involved in making of end product and hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions were made for adding certain goods and by means of order dated 16.12.1998, recognition certificate was amended and revisionist was entitled to purchase the goods on concessional rate of tax, which were to be utilized by him for manufacture of notified goods. 5. It is during course of assessment proceedings it came to the notice that revisionist had purchased 'paint' on concessional rate of tax at the rate 2.5% (normal rate of tax 15%) against Form-3B and hence he was put under notice asking him to reply as to why he has purchased Paint utilizing Form-3B, despite the fact that Paint is not a raw material used for manufacture of sugar and hence why should difference of tax of 12.5% be not realised from him. 6. The revisionist responded to the said notice and in his defence stated that he had purchased Paint as it was covered under the heading Consumable Stores for which he had duly applied and in the recognition certificate issued on 28.07.1994 the said article was indicated at item no. 1. It was further stated that items no. 4 of amended certificate dated 16.12.1999 material for consumable stores . 7. The Assessing Authority rejected the explanation gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aside the penalty order while allowing the said appeal. 12. Sri Rohit Nandan Shukla, learned counsel appearing for the Revenue has supported the impugned judgment and order as well as the orders passed by the Assessing Authority as well as first Appellate Authority and has submitted that for manufacture of sugar 'paints' is not a raw material which is utilized for manufacture of sugar and hence revisionist has purchased the 'paints' utilizing Form-3B in clear violation of provisions of Section 4(b) of the Act and hence there is no infirmity in the orders passed by the authority below. He further submits that definition of consumable store was interpreted by the Hon'ble Supreme Court in the case of Coastal Chemicals Ltd. Etc. Vs. Commercial Tax Officer, A.P., (2000) 117 STC 12, wherein the Court has held as follows :- The word 'consumables' in the said provision takes colour from and must be read in the light of the words that are its neighbours, namely, 'raw material', 'component part', 'sub-assembly part' and 'intermediate part' so read, it is clear that the word 'consumables' therein refers only to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of tax at concessional rate under this section or, as the case may be, without payment of tax and has used such goods for a purpose other than that for which the recognition certificate was granted or has otherwise disposed of the said goods, such dealer shall be liable to pay as penalty such amount as the assessing authority may fix, which shall not be less than the difference between the amount of tax on the sale or purchase of such goods payable under this section and the amount of tax payable under any other provisions of this Act but not exceeding three times the amount of such difference. 16. The Apex Court in the case of Coastal Chemicals Ltd. Etc. (supra) has clearly stated that word 'consumables' refers only to material which are utilized as an input in the manufacturing process namely 'raw material', 'component part', 'sub-assembly part' and 'intermediate part' etc. 17. Applying the aforesaid definition to the facts of the present case, it is noticed that 'Paints' are not utilized either as raw material or processing material such as raw material, plant, machinery, equipments, spare parts, but as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing concern. 21. Thus, the dictionary meaning of the word stores is material supplies of a manufacturing concern or articles accumulated for some specific object and issued or drawn upon as needed. 22. ------- 23. Applying the aforementioned principles, I find that the cement which is required by the applicant for use in the construction of factory building and or foundation, as held by the honourable Supreme Court in the case of J.K. Cotton Spinning Weaving Mills Co. Ltd. [1965] 16 STC 563 ; AIR 1965 SC 1310, which has been followed by the honourable Karnataka High Court in the case of Ballarpur Straw Board Mills Ltd. [1978] 42 STC 401 and this Court in the case of Sivalik Collulose Ltd. 1992 UPTC 1 cannot be said that it is used either directly or even remotely in the manufacture of finished goods. Similar is the case of steel and paints, which too is required only in the repairs of boiler and protection of machineries. They cannot be said to be used even indirectly in the manufacture or processing of goods for sale. Thus, all the three items would not fall under the description of the word stores , which are used in the manufacture of finishe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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