LexM/S. J. K. COTTON SPINNING & WEAVING MILLS CO. LTD. versus SALES TAX OFFICER, KANPUR AND ANOTHER
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
MIS. J. K. COTI'ON SPINNING & WEAVING MILLS CO.
A
LTD. ,,
V.·
SALES TAX OFFICER, KANPUR AND ANOTIIER
''
October 28, 1964
D
(K. SuBBA RAo, J. C. SHAH ANDS. M. S1KRI JJ.)
Sales Ta.x--Con1pany 1nanujacturing textile goods and ti/es-Goods
.. intended for use in manufacture or processing of goods for sa/e"-Dra1v-
ing material, photographic; goods, e/ectr{ca/s, certain building nuiteria/s
whether such goods-Central Sales Tax Act, 1965, s. 8(3) (b) read ll'ith
C
Rule 13 framed under s. 13 of the A ct.
Tho assessce, q.-illnited company carrying on the busjne~s of n1anufac-
turin!; textile goods, tiles and other commodities, at Kanpur, applied for
registration under s. 7 of the Central Sales Tax Act, 19.56, and requested
that certain goods be specified in its certificate of registration for the purpose
of getting benefit under s. 8(1) of tbe Act.
According to s. 8(3) (b)
of the _,Act read with r. 13 framed under the Act the assesscc rould gt!t
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the aforesaid benefit in respect of goods which were ·'intended for U;>iC in
thl: manufacture or proCessing of goods for sale".
The Sales Tax Ofticcr
ut first accepted the nssessee•s claim in res'pcct of all the goods as rcq uested
by the assessee but later on directed that certain goods, namely, "<lra\ving
mate'rial, photographic material, building materials including li1ne and cen1cnl
(except cc1ncnt used in manufacture of tiles for re-sale), clcciricals, iron
and steel, and coal", be deleted from the assessec's certificate of registra-
tion.
Against this order the assessce filed a petition under Art. 226 of
E
the Constitution.
The High Court, dismissing the petition, held that
drawing materials, photographic materials, coJOur, chemicals,
e!~ctricals
machinery and building materials such as cement .and lime 1\\'Cre not con1-
prehended in the expression "in the manufacture or processing of go6ds fpr
sale" within the meaning of s. 8(3) (b) read with r. 13.
The assessec
appealed to this Court.
•
JiELD : It was not open to the High Court to expand tbc scope of
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the petitiofl chaHenging the correctness of the order of the Sales 'fax
Olliccr. and to denl \vith matters which '\'CrC never in issuc'or to decide
that other categories of goods (colour, chefuicals, machinery etc.), which
the Sales. Tax Officer had not ordered to be deleted, did not fall within
the terms of s. 8(3) (1') read with r. 13. [903 EJ
Where any particular process is so integrally connected ·with the ulti1natc
production of goods that but for that process, manufacture or proc;essing
of goods \Vould be impossible or con1merciaUy inexpedient, goods requiretl
in that process \vould fall within the expression "in rhe nlanufacturc of
gooJs". For gooJs to answer that description, it is not necessary that th~y
must of ncccssily Cc &oods which are used as "ingredient or con1n1odity in
lhc creation of goods:". or which·' <!TC "directly and actually needed for
turning our or n1aking of the goods.'' f9£5 F-Gl
Applying the above test, drawing and photographic materials used fur
the n1:iking of d~signs for cloth to he n1anufactur~d by the con1pnny, rind
rlc!lrical ~uip111cnt nccc.s5ary fot the prpd.uction of goods e.g., hwnidificrs:,
exhaust fans etc .. are which quAlify for special treatment under s. 8(1).
Bur clcctricnl equipn1cnt' \vhich is not directly connected \vith the process
I
G
H
J. K. COTTON MILLS V. S. T. OFFICER (Shah/'.)-
901
A
Of. manufactufe such &s fans, coclers, air--conditioning unit!, 3.nd buildin:
material~ includin!? lime and cement not required in the manufacture of tile!
for sale, would not fall under that category. [907 F-0; 908 A-BJ
Indian Copper Corporation Ltd. v. Comn1issioner of COmmercial Taxes,
Bihar and Others relied en.
B.
CIVIL APPELLATE JURISDICTION; Civil Appeal 'No. 857 of
1964.
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Appeal by special leave from. the· judgment and order dated
April 27, 1964, of the Allahabad High Court in Civil Misc. Writ
Petition No. 23 67 of 1962.
Sri Narain Andley and Rameshwar Nath, for the appellant.
0. P. Rana, for the respondents.
The Judgment of the Court was delivered by
D
Shah J:
Mes;rs J. · K. Cotton· Spinning and Weaving
Mills Company Ltd. is a public limited Company having its
registered office at Kanpur, The Company manufactures for sale
cotton textiles, tiles and other commodities.
The
Company
applied on June 21, 1957, requesting the Sales Tax Officer, Sector
Il, Kanpur, to register it as a dealer under s. 7 ( 1Excerpt shown. Read the full judgment & AI analysis in Lexace.