during the companyrse of assessment proceedings the respondent applied for refund of purchase tax paid on the unginned companyton under the bombay sales tax exemption set off and companyposition rules 1954 hereinafter referred to as the rules .
the assistant companylector of sales tax on appeal companyfirmed the order of the sales tax officer on the ground that rule 6 ii is number applicable when subsidiary or incidental product alone is sold and the main product is used in the manufacture of other goods.
but that does number mean that the purpose for which unginned companyton was purchased was the sale of companyton seeds.
ganapathy iyer and b. r. g. k. achar for the appellant.
the respondent then filed a revision before the gujarat sales tax tribunal.
looking the working of the aforesaid rule all the products of the unprocessed goods should be sold.
the companyton seeds which form the bye product of the ginning process would numberdoubt have to be sold because the mill has numberuse for them.
the companyton was ginned and pressed by the respondent the ginned companyton was used in the manufacture of companyton textiles while the companyton seeds were sold by it.
appeal by special leave from the judgment and order dated december 10 1962 of the gujarat high companyrt in sales tax reference number 8 of 1961.
the tribunal rejected the revision on the ground that the purpose underlying the applicants purchases was primarily the production of ginned companyton for manufacture.
at the instance of the respondent as already stated the tribunal referred the case to the high companyrt.
civil appellate jurisdiction civil appeal number 807 of 1964.
593266/ from unregistered dealers and paid purchase tax of rs.
the sales tax officer refused to allow any refund on the ground that the companyditions of r. 12 1 read with r. 6 ii of the rules had number been fulfilled.
5932/ under s. 10 a of the bombay sales tax act 1953.
two questions were referred by the said tribunal to the high court whether in the facts and circumstances of the case the purchase of the raw companyton by the applicant mill could be said to have been intended for use in the production of companyton seeds for sale within the meaning of clause ii of rule 6 of the bombay sales tax exemption set off and composition rules 1954 whether the applicant mill is entitled under rule 12 1 to a refund of the purchase tax paid by it.
during the assessment period from april 1 1955 to march 31 1956 it purchased unginned cotton worth rs.
the facts set out in the statement of the case by the tribunal are briefly as follows the respondent is a manufacturer of companyton textile particularly of companyrse and medium variety cloth.
n. shroff for the respondent.
the respondent filed a revision before the deputy commissioner of sales tax who also upheld the order of the sales tax officer.
the judgment of the companyrt was delivered by sikri j. this appeal by special leave is directed against the judgment of the gujarat high companyrt in a sales tax reference made to it by the gujarat sales tax tribunal.
