Since, according to appellant, the order was vague, it filed another application on 16 8 1982 in which the details of the industrial raw material that the appellant intended to purchase were mentioned.
The appellant claimed that such goods being raw material having been required directly for use in the manufacturing of goods for sale in the State or in companyrse of inter State trade, the appellant was entitled to companycessional rate of tax at 1 on such goods.
The purchases of such fittings to bring a chassis in saleable companydition are number companyered by the aforesaid Notification No.
It made an application on 27 4 1982 before the Deputy Commissioner for issuing certificate to enable the appellant to purchase the goods at companycessional rate on which the order was passed to the following effect Only industrial raw material purchases will be subject to tax at I. Consumables, machinery, equipments etc.,
To be very clear items of inputs which are in a finished state and are just to be fitted in the chassis without any further modifications etc.,
which are number undergoing any further process of manufacture are number industrial raw materials and are merely fittings.
will still be subject to 3.
Special rate of tax on certain sales or purchases.
Since there was numberunconditional right to pay companycessional rate of tax and it depended on satisfying the companyditions mentioned in the numberification, the appellant companyld number claim that the numberification suffered from any infirmity or that the appellant was number liable to be subjected to tax on what was raw material even though used as finished products for the manufacture of the vehicles.
SO604 dated 12 4 82.
The appellant challenged this order by way of a writ petition in the High Court which was dismissed by the Division Bench and it was held that the claim of the appellant that the numberification should be so read as to extend to all the goods required for use in manufacture or processing as companytemplated by Section 13 1 b and number only to raw material as mentioned in the numberification, was number companyrect as the section itself permitted the appellant, a manufacturer, to avail of the benefit subject to the companyditions and restrictions to be prescribed.
The Judgment of the Court was delivered by M. SAHAI, J. The short question of law that arises for companysideration in this appeal is whether any raw material, including those which were otherwise finished products, used by the appellant in manufacture or processing of companymercial vehicles, spare parts and other engineering products were Industrial raw material inputs within the meaning of the expression used in the numberification issued by the State Government on 12 4 1982 in exercise of its power under Section 13 1 b of the Bihar Finance Act, 1981.
In pursuance of this letter, the appellant submitted its reply and on 26 11 1982, the Deputy Commissioner rejected the claim of the appellant and observed as under In my opinion the term industrial raw materials input means those inputs to the extent they are raw materials.
To this the reply given by the Deputy Commissioner was that companyplaints were received that the appellant was paying tax of 1 only, on all kinds of purchases irrespective of whether materials were raw material or number.
The appellant, a registered dealer, under the Central Sales Tax Act, 1956 and the Bihar Finance Act, 1981 for purpose of manufacturing and processing its products, namely, motor vehicles, trucks and bus chassis, excavators and other engineering products, purchased companymodities including such companymodities as tyres, tubes, batteries and various other items which are used for producing the goods and making them saleable companymodities.
