Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Rajasthan Sales Tax Act 1994 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Rajasthan Sales Tax Act, 1994 :ss. 2(34), 8(3), 10(1), 37 and 84-Raw material-'Fuel and Lubricants'-'Diesel-Used for generating electricity for manufacturing end products i.e. yarn and fabric-Held, is raw material entitled to concessional rate of 3% tax instead of normal rate of 41%-Assessee was purchasing diesel as raw material under registration granted to him u/s 10-Registration certificate can be rectified or revised prospectively. Words and Phrases: 'Include' as occurring ins. 2(34) of Rajasthan Sales Tax Act, 1994 - Meaning of Assessee-respondent for the purpose of manufacturing polyester yarn-generated electricity by using diesel. It claimed benefit of concessional rate of tax @ 3% on diesel under s. 10(1) of the Rajasthan Sales Tax Act, 1994 on the ground that diesel purchased was a raw material for manufacture of ultimate final product. The assessing authority held that since diesel was not directly used for manufacture of final product, the assessee was not entitled to benefit under Notification dated 29.9.1995 and was liable to pay tax @ 4%; and, accordingly, levied a differential tax @ 1 % with interest. The appeal of the assessee was dismissed by the Deputy Commissioner (Appeals), but its further appeal was allowed by the State Tax Board and the revision of the Revenue was dismissed by the High Court.In appeal filed by the Revenue, it was contended, inter alia, that the G diesel was used for manufacture of intermediate product i.e. electricity, and, therefore, it was not entitled to benefit of s.10 of the Act; that unless the fuel used was an essential requirement of the manufacturing process, the same could not be categorised as a raw material. For the respondent it was contended that once the commodity was recorded in the registration certificate as raw material, then the Revenue could not roll back from its stand to the detriment of the assessee as the latter did not violate any condition but acted on the belief of the revenue. On the question: Whether the diesel purchased by the assessee can be termed as raw material for the manufacture of final products-yarn and fabric, |
Judge | Hon'ble Dr. Justice A.R. Lakshmanan |
Neutral Citation | 2007 INSC 35 |
Petitioner | Commercial Taxation Officer, Udaipur |
Respondent | Rajasthan Taxchem Ltd. |
SCR | [2007] 1 S.C.R. 855 |
Judgement Date | 2007-01-12 |
Case Number | 177 |
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