{"id":204591,"date":"1964-10-28T00:00:00","date_gmt":"1964-10-27T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-j-k-cotton-spinning-vs-sales-tax-officer-kanpur-and-on-28-october-1964"},"modified":"2015-06-07T22:49:02","modified_gmt":"2015-06-07T17:19:02","slug":"ms-j-k-cotton-spinning-vs-sales-tax-officer-kanpur-and-on-28-october-1964","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-j-k-cotton-spinning-vs-sales-tax-officer-kanpur-and-on-28-october-1964","title":{"rendered":"M\/S. J. K. Cotton Spinning & … vs Sales Tax Officer, Kanpur And … on 28 October, 1964"},"content":{"rendered":"
Supreme Court of India<\/div>\n
M\/S. J. K. Cotton Spinning & … vs Sales Tax Officer, Kanpur And … on 28 October, 1964<\/div>\n
Equivalent citations: 1965 AIR 1310, \t\t 1965 SCR (1) 900<\/div>\n
Author: S C.<\/div>\n
Bench: Shah, J.C.<\/div>\n
           PETITIONER:\nM\/S.  J. K. COTTON SPINNING & WEAVING NULLS CO. LTD.\n\n\tVs.\n\nRESPONDENT:\nSALES TAX OFFICER, KANPUR AND ANOTHER\n\nDATE OF JUDGMENT:\n28\/10\/1964\n\nBENCH:\nSHAH, J.C.\nBENCH:\nSHAH, J.C.\nSUBBARAO, K.\nSIKRI, S.M.\n\nCITATION:\n 1965 AIR 1310\t\t  1965 SCR  (1) 900\n CITATOR INFO :\n R\t    1967 SC 234\t (11)\n RF\t    1976 SC2469\t (2,3,9)\n R\t    1989 SC2066\t (4)\n RF\t    1990 SC 196\t (3)\n E\t    1990 SC1893\t (5)\n RF\t    1991 SC2222\t (15)\n\n\nACT:\nSales  Tax-Company  manufacturing textile goods\t and  tiles-\nGoods  \"intended  for use in manufacture  or  processing  of\ngoods  for  sale\"  -Drawing  material,\tphotographic  goods,\nelectricals, certain building materials whether such  goods-\nCentral\t Sales Tax Act, 1965, s. 8(3) (b) read with Rule  13\nframed under s. 13 of the Act.\n\n\n\nHEADNOTE:\nThe assessee, a limited company carrying on the business  of\nmanufacturing textile goods, tiles and other commodities, at\nKanpur,\t applied for registration under s. 7 of the  Central\nSales  Tax  Act, 1956, and requested that certain  goods  be\nspecified in its certificate of registration for the purpose\nof  getting benefit under s. 8(1) of the Act.  According  to\ns.  8(3)(b) of the Act read with r. 13 framed under the\t Act\nthe  assessee could get the aforesaid benefit in respect  of\ngoods  which  were \"intended for use in the  manufacture  or\nprocessing  of\tgoods for sale\".  The Sales Tax\t Officer  at\nfirst  accepted the assessee's claim in respect of  all\t the\ngoods  as  requested by the assessee but later\ton  directed\nthat certain goods, namely, \"drawing material,\tphotographic\nmaterial,  building  materials\tincluding  lime\t and  cement\n(except\t cement\t used in manufacture of tiles  for  resale),\nelectricals, iron and steel, and coal\", be deleted from\t the\nassessee's certificate of registration.\t Against this  order\nthe  assessee  filed  a\t petition  under  Art.\t226  of\t the\nConstitution.  The High Court, dismissing the petition, held\nthat  drawing  materials,  photographic\t materials,  colour,\nchemicals, electricals machinery and building materials such\nas  cement and lime were not comprehended in the  expression\n\"in the manufacture or processing of goods for sale\"  within\nthe  meaning of s. 8(3) (b) read with r. 13.   The  assessee\nappealed to this Court.\nHELD : It was not open to the High Court to expand the scope\nof the petition challenging the correctness of the order  of\nthe  Sales Tax Officer, and to deal with matters which\twere\nnever  in issue or to decide that other categories of  goods\n(colour,  chemicals,  machinery etc.), which the  Sales\t Tax\nOfficer\t had not ordered to be deleted, did not fall  within\nthe terms of s. 8 (3) (b) read with r. 13. [903 E]\nWhere any particular process is so integrally connected with\nthe ultimate production of goods that but for that  process,\nmanufacture  or processing of goods would be  impossible  or\ncommercially  inexpedient,  goods required in  that  process\nwould  fall  within the expression \"in\tthe  manufacture  of\ngoods\".\t  For  goods to answer that description, it  is\t not\nnecessary  that\t they must of necessity be goods  which\t are\nused as \"ingredient or commodity in the creation of  goods\",\nor  which are \"directly and actually needed for turning\t out\nor making of the goods.\" [905 F-G]\nApplying the above test, drawing and photographic  materials\nused for the making of designs for cloth to be\tmanufactured\nby  the company, and electrical equipment necessary for\t the\nproduction  of goods e.g., humidifiers, exhaust\t fans  etc.,\nare which qualify for special treatment under s. 8(1).\t But\nelectrical  equipment which is not directly  connected\twith\nthe process\n901\n of  manufacture  such as  fans,  coolers,  air-conditioning\nunits,\tand building material including lime and cement\t not\nrequired  in  the manufacture of tiles for sale,  would\t not\nfall under that category. [907 F-G; 908 A-B)\nIndian Copper Corporation Ltd. v. Commissioner of Commercial\nTaxes, Bihar and Others<\/a> relied on.\n\n\n\nJUDGMENT:\n<\/pre>\n
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 857 of 1964.
\nAppeal\tby special leave from the judgment and\torder  dated
\nApril  27, 1964, of the Allahabad High Court in Civil  Misc.
\nWrit Petition No. 2367 of 1962.\n<\/p>\n
 Sri Narain Andley and Rameshwar Nath, for the appellant.
\nO. P. Rana, for the respondents.\n<\/p>\n
The Judgment of the Court was delivered by
\n Shah  J.  Messrs J. K. Cotton Spinning\t and  Weaving  Mills
\nCompany\t Ltd.  is  a  public  limited  Company\thaving\t its
\nregistered  office at Kanpur.  The Company manufactures\t for
\nsale  cotton  textiles, tiles and  other  commodities.\t The
\nCompany\t applied on June 21, 1957, requesting the Sales\t Tax
\nOfficer, Sector II, Kanpur, to register it as a dealer under
\nS. 7(1) of the Central Sales Tax Act, 1956, and prayed\tthat
\nthe  following\tgoods which it ordinarily purchased  in\t the
\ncourse\tof  inter-State\t trade\tmay  be\t specified  in\t the
\ncertificate :\n<\/p>\n
\t      Cotton   staple  fibre,  yam,  wastes,   coal,
\n\t      petrol,\tmachinery,   electricals,    spares,
\n\t      hardwares,   dyes\t and   colours,\t  chemicals,
\n\t      auxiliaries,   oils,   lubricants,    tallows,
\n\t      starches,\t woollen  clothings,  gums,   clays,
\n\t      salt,  beltings,\tbobbins,  shuttles,   wooden
\n\t      accessories   and\t  other\t mill\tstores\t for
\n\t      manufacturing  cloth, yarn, tiles\t and  paints
\n\t      etc.”\n<\/p><\/blockquote>\n
The  Sales  Tax Officer granted the certificate\t as  prayed.
\nThe  certificate of registration was later modified and\t the
\nfollowing additional categories of goods were specified :\n<\/p>\n
\t      “Industrial   gases,   drawing\tinstruments,
\n\t      photographic   materials,\t packing   materials
\n\t      including\t wood, paper, straw and\t card-boards
\n\t      etc.  and building materials  including  iron,
\n\t      steel,  cement, lime, fire bricks and  refrac-
\n\t      tories.  ”\n<\/p><\/blockquote>\n
902<\/span><\/p>\n
Thereafter  by\tnotice dated July 19, 1961,  the  Sales\t Tax
\nOfficer\t cancelled the specification in respect of coal\t and
\ncalled upon the Company to show cause why the certificate of
\nregistration  be  not  amended so as  to  exclude  therefrom
\n“drawing   instruments,\t photographic  materials,   building
\nmaterials including iron, steel, cement and lime and certain
\ngoods  covered\tunder the term\telectricals”.\tThe  Company
\nshowed\tcause against the notice and contended that all\t the
\narticles  specified in the certificate were required in\t the
\nmanufacture  and  processing of goods for  sale.   By  order
\ndated  August  9, 1962 the Sales Tax Officer  directed\tthat
\nfrom  the  registration certificate the following  items  be
\ndeleted;\n<\/p>\n
\t      “Drawing\t material,  photographic   material,
\n\t      building\tmaterial including lime\t and  cement
\n\t      (except  cement used in manufacture  of  tiles
\n\t      for re-sale), electricals. iron and steel\t and
\n\t      coal”,
\nand called upon the Company to surrender the certificate  of
\nregistration  within  three  days for  making  the  proposed
\namendments.\n<\/p><\/blockquote>\n
The Company then applied to the High Court of Judicature  at
\nAllahabad for a writ of certiorari calling for the record of
\nthe  case and quashing the order dated August 9,  1962.\t  At
\nthe  trial,  counsel  for  the Company\tdid  not  press\t the
\npetition  in respect of iron, steel and coal.\tCounsel\t for
\nthe Company submitted that the remaining items were  covered
\nby s. 8(3)(b) of the Central Sales Tax Act read with Rule 13
\nframed under s. 13 of the Act, and on that account the order
\npassed by the Sales Tax Officer was illegal and that in\t any
\nevent  the  items in question having been  included  in\t the
\ncertificate of registration after due enquiry as required by
\nthe  statute,  the Sales Tax Officer  acted  without  juris-
\ndiction\t in seeking to make the amendments.  The High  Court
\nnegatived  the contention of the Company that the Sales\t Tax
\nOfficer\t had  no jurisdiction to revise the  certificate  of
\nregistration  issued  after due enquiry,  and  rejected\t the
\npetition  holding  that\t drawing  instruments,\tphotographic
\nmaterials,  colours, chemicals, electricals,  machinery\t and
\nbuilding materials such as cement, lime are not comprehended
\nin the expression “in the manufacture or processing of goods
\nfor sale” within the meaning of S. 8 (3 ) (b) read with Rule\n<\/p>\n
13.  Against the order dismissing the petition, the  Company
\nhas appealed to this Court.\n<\/p>\n
Counsel\t for  the Company has very properly  not  sought  to
\nraise  the  contention\tthat the Sales Tax  Officer  had  no
\njurisdiction  to  modify the  certificate  of  registration,
\nmerely because the certificate
\n903<\/span>
\n as originally granted was issued after due enquiry.   Under
\nS.  7 (4) of the Act a certificate of  registration  granted
\nunder s. 7(1) may be cancelled by the authority granting it,
\ninter  alia,  for any sufficient reason.  If on\t account  of
\nsome error, the certificate specifies articles which did not
\nfall within the terms of s. 8 (3) (b) read with Rule 13, the
\nerror  would  manifestly be “sufficient reason”\t within\t the
\nmeaning\t of  S. 7 (4) a uthorising the cancellation  of\t the
\ncertificate qua the items which were erroneously included.
\nIn the first instance, it must be pointed out that the High-
\nCourt  has,  in rejecting the petition, dealt  with  certain
\nmatters\t which were never in issue between the\tCompany\t and
\nthe  Sales  Tax\t Officer.  By the order\t of  the  Sales\t Tax
\nOfficer\t “machinery”, and” colours and chemicals”  were\t not
\ndeleted from the certificate, and the exclusion of “building
\nmaterials, cement and lime” was expressly restricted so that
\nit  was\t not  to  operate  in  respect\tof  cement  used  in
\nmanufacture  of tiles for sale.\t The Sales Tax\tOfficer\t had
\nrejected the claim of the Company only in respect of drawing
\ninstruments,  photographic  materials,\tbuilding   materials
\nincluding lime and cement (except cement used in manufacture
\nof  tiles for re-sale), electricals, iron, steel  and  coal,
\nand it was not open to the High Court to expand the scope of
\nthe petition challenging the correctness of the order of the
\nSales Tax Officer, and to deal with matters which were never
\nin  issue or to decide that other categories of goods  which
\nthe Sales Tax Officer had not ordered to be deleted did\t not
\nfall within the terms of s. 8 (3) (b) read with Rule 13.
\nSection\t 6 of the Act which is the charging section  imposes
\nliability upon every dealer with effect from the date as may
\nbe specified by the Central Government to pay tax under\t the
\nAct  on\t all sales effected by him in the course  of  inter-
\nState trade or commerce during any year on and from the date
\nso   notified.\t Section  7  sets  up  the   machinery\t for
\nregistration of dealers and s. 8 prescribed the rates of tax
\non-  sales in the course of inter-State trade  or  commerce.
\nSub-section  (1) of s. 8, as it stood at the material  time,
\nprovided for the rates of tax to be paid on the turnover  by
\na  dealer  selling  in the course of  inter-State  trade  or
\ncommerce  to  registered  dealer goods\tof  the\t description
\nmentioned  in  sub-s. (3).  Sub-section (2)  prescribed\t the
\nrate  of tax payable by any dealer in any case\tnot  falling
\nwithin sub-s. (1) in respect of the sale by him of any goods
\nin the course of inter-State trade or commerce.\t Sub-section
\n(3) enacted
\n904<\/span>
\n\t      “The  goods referred to in clause (b) of\tsub-
\n\t      section (1)-\n<\/p>\n
\t      (a)   in the case of declared goods are  goods
\n\t      of  the  class  or classes  specified  in\t the
\n\t      certificate of registration of the  registered
\n\t      dealer purchasing the goods as being  intended
\n\t      for re-sale by him;\n<\/p>\n
\t      (b)   in the case of goods other than declared
\n\t      goods  are  goods\t of  the  class\t or  classes
\n\t      specified\t in the certificate of\tregistration
\n\t      of  registered dealer purchasing the goods  as
\n\t      being  intended for re-sale by him or  subject
\n\t      to any rules made by the Central Government in
\n\t      this behalf for use by him in the\t manufacture
\n\t      or  processing of goods for sale or in  mining
\n\t      or  in  the  generation  or  distribution\t  of
\n\t      electricity or any other form of power;”\n<\/p>\n
Section\t 13 conferred power upon the Central Government,  to
\nmake rules on several matters including enumeration of goods
\nor  class of goods used in the manufacture or processing  of
\ngoods  for  sale  or  in mining\t or  in\t the  generation  or
\ndistribution of electricity or any other form of power.\t  In
\nexercise  of this power, Rule 13 was framed by\tthe  Central
\nGovernment,  which as amended read at the material time,  as
\nfollows :\n<\/p>\n
\t      “The  goods referred to in clause (b) of\tsub-
\n\t      section  (3) of section 8 which  a  registered
\n\t      dealer  may purchase, shall be goods  intended
\n\t      for  use by him as raw  materials,  processing
\n\t      materials, machinery, plant, equipment, tools,
\n\t      stores,  spare  parts,  accessories,  fuel  or
\n\t      lubricants,  in the manufacture or  processing
\n\t      of  goods\t for sale or in mining,\t or  in\t the
\n\t      generation  or distribution of  electricity  or
\n\t      any other form of power.”\n<\/p><\/blockquote>\n
The  High  Court  confirmed the\t exclusion  of\tdrawing\t and
\nphotographic  materials on the ground that  those  materials
\nare  required  merely in the preparation  of  designs  which
\nthough\tnecessary  for turning out textile goods  cannot  be
\nsaid  to  be goods intended for use in\tthe  manufacture  of
\ngoods.\t In  the  view of the High  Court,  designing  is  a
\nprocess\t distinct  from the process of manufacture  i.e.  of
\nmaking\tor  fabricating\t raw  materials\t by  hand,  art\t  or
\nmachinery,  and\t work into forms convenient  for  use.\t But
\nwithout a design of the goods sought to be manufactured in a
\nfactory\t which is geared to production of goods\t of  uniform
\npattern,  it would be impossible to attempt  manufacture  of
\ngoods  on a commercial scale.  The production itself has  to
\nbe of a set pattern,
\n905<\/span>
\n and   deviation   from\t the  design   prepared\t  would\t  be
\nimpermeable.\tThat   without\tthe  use  of   drawing\t and
\nphotographic materials, designing of patterns would, if\t not
\nimpossible,  be very difficult, is conceded.  But  the\tHigh
\nCourt was apparently of the view, and that view is supported
\nby  counsel for the Sales Tax’ Officer, that goods  intended
\nfor  use in the manufacture of goods or processing of  goods
\nfor  sale  must\t of necessity be goods\twhich  are  used  as
\n“ingredient or commodity in the creation of goods”, or which
\nare “directly and actually needed for turning out or  making
\nof the goods”.\n<\/p>\n
Section\t 8  (3)\t (b) authorises the  Sales  Tax\t Officer  to
\nspecify,   subject  to\tany  rules  made  by   the   Central
\nGovernment,  goods  intended for use by the  dealer  in\t the
\nmanufacture or processing of goods for sale or in mining, or
\nin  the\t generation or distribution of\telectricity  or\t any
\nother form of power.  By Rule 13 the Central Government\t has
\nprescribed the goods referred to in s. 8 (3) (b): such goods
\nmust be intended for use in the manufacture or processing of
\ngoods for sale or in mining or generation or distribution of
\npower,\tand  the  intended  use of  the\t goods\tmust  be  as
\nspecified  in Rule 13.\tIt is true that under Rule 13,\tread
\nwith  s.  8 (3) (b) mere intention to use the goods  in\t the
\nmanufacture  or processing of goods for sale, will not be  a
\nsufficient  ground for specification: the intention must  be
\nto  use the goods as raw materials as processing  materials,
\nas  machinery, as plant, as equipment, as tools, as  stores,
\nas spare parts, as accessories, as fuel or as lubricants.  A
\nbare  survey of the diverse uses to which the goods  may  be
\nintended  to  be  put in the manufacture  or  processing  of
\ngoods,\tclearly\t shows that  the  restricted  interpretation
\nplaced\tby the High Court is not warranted.  The  expression
\n“in  the manufacture of goods” would normally encompass\t the
\nentire\tprocess carried on by the dealer of  converting\t raw
\nmaterials into finished goods.\tWhere any particular process
\nis  so integrally connected with the ultimate production  of
\ngoods  that but for that process, manufacture or  processing
\nof  goods would be commercially inexpedient, goods  required
\nin  that  process would, in our judgment,  fall\t within\t the
\nexpression “in the manufacture of goods”.  For instance,  in
\nthe  case  of a cotton textile\tmanufacturing  concern,\t raw
\ncotton\tundergoes various processes before cloth is  finally
\nturned out.  Cotton is cleaned, carded, spun into yam,\tthen
\ncloth is woven, put on rolls, dyed, calendered and  pressed.
\nAll   these  processes\twould  be  regarded  as\t  integrated
\nprocesses  and included “in the manufacture” of\t cloth.\t  It
\nwould be difficult to regard goods used only in the  process
\nof weaving cloth and not goods used in the anterior
\n906<\/span>
\nprocesses  as  goods used in the manufacture of\t cloth.\t  To
\nread  the expression “in the manufacture” of cloth  in\tthat
\nrestricted  sense, would raise many anomalies.\t Raw  cotton
\nand  machinery\tfor  weaving cotton and\t even  vehicles\t for
\ntransporting raw and finished goods would qualify under Rule
\n13,  but not spinning machinery, without which the  business
\ncannot\tbe  carried on.\t In our judgment, Rule 13  does\t not
\njustify\t the  importation  of  restrictions  which  are\t not
\nclearly expressed nor imperatively intended.  Goods used  as
\nequipment, as tools, as stores, as spare parts, or as acces-
\nsories in the manufacture or processing of goods, in mining,
\nand in the generation and distribution of power need not, to
\nqualify for special treatment under S. 8(1), be\t ingredients
\nor  commodities\t used  in the processes, nor  must  they  be
\ndirectly  and  actually\t needed\t for  “turning\tout  or\t the
\ncreation of goods.”\n<\/p>\n
In  our judgment if a process or activity is  so  integrally
\nrelated to the ultimate manufacture of goods so that without
\nthat   process\t or  activity  manufacture  may,   even\t  if
\ntheoretically  possible, be commercially inexpedient,  goods
\nintended for use in the process or activity as specified  in
\nRule 13 will qualify for special treatment.  This is not  to
\nsay  that  every  category of goods  “in’  connection  with”
\nmanufacture  of\t or “in relation to” manufacture,  or  which
\nfacilitates the conduct of the business of manufacture\twill
\nbe  included within Rule 13.  Attention in  this  connection
\nmay  be invited to a judgment of this Court in which it\t was
\nheld  that vehicles used by a Company (which mined  ore\t and
\nturned\tout copper in carrying on activities as a miner\t and
\nas a manufacturer) fell within Rule 13, even if the vehicles
\nwere  used  merely  for removing ore from the  mine  to\t the
\nfactory, and finished goods from the factory to the place of
\nstorage.   Spare  parts\t and accessories  required  for\t the
\neffective operation of those vehicles were also held to fall
\nwithin.\t  Rule\t13.  See Indian Copper\tCorporation  Ltd  v.
\nCommissioner of Commercial Taxes, Bihar and Ors<\/a>(1).
\nThe  High Court has rightly pointed out that unless  designs
\nare  prepared  it would be “impossible for the\tworkmen”  to
\nturn out goods for sale.  If the process of designing. is so
\nintimately  connected  with the process\t of  manufacture  of
\ncloth,\twe see no reason to regard the process of  designing
\nas not being a part of the process of manufacture within the
\nmeaning\t of Rule 13 read with s. 8 (3) (b).  The process  of
\ndesigning may be distinct from the actual process of turning
\nout  finished goods.  But there is no warrant  for  limiting
\nthe meaning of the expression “in the manu-
\n(1)  C.A.No. 1021 of 1963 decided on Oct. 19,1964.\n<\/p>\n
907<\/span><\/p>\n
facture\t of  goods” to the process of  production  of  goods
\nonly.\tThe expression “in the manufacture” takes in  within
\nits compass, all processes which are directly related to the
\nactual\tproduction.  Goods intended as equipment for use  in
\nthe  manufacture  of  goods  for  sale\tare  expressly\tmade
\nadmissible  for\t specification.\t  Drawing  and\tphotographic
\nmaterials  falling within the description of goods  intended
\nfor use as “equipment” in the process of designing which  is
\ndirectly  related  to  the actual production  of  goods\t and
\nwithout\t which\tcommercial production would  be\t inexpedient
\nmust  be  regarded  as\tgoods  intended\t for  use  “in\t the
\nmanufacture of goods”.\n<\/p>\n
Building materials including lime and cement not required in
\nthe  manufacture  of  tiles for\t sale  cannot,\thowever,  be
\nregarded within the meaning of Rule 13, as raw materials  in
\nthe  manufacture or processing of goods or even as  “plant”.
\nIt  is true that buildings must be constructed\tfor  housing
\nthe  factory  in which machinery is  installed.\t  Whether  a
\nbuilding  is a “plant” within the meaning of Rule 13,  is  a
\ndifficult  question on which no opinion need  be  expressed.
\nBut  to qualify for specification under s. 8 (3)  (b)  goods
\nmust be intended for use of the nature mentioned in Rule 13,
\nin the manufacture of goods.  Building materials used as raw
\nmaterials  for construction of “plant” cannot be said to  be
\nused as plant in the manufacture of goods.  The\t Legislature
\nhas  contemplated that the goods to qualify under s.  8\t (3)\n<\/p>\n
(b)  must be intended for use as raw materials or as  plant,
\nor  as equipment in the manufacture or processing of  goods,
\nand  it cannot be said that building materials\tfall  within
\nthis  description.  The High Court was, therefore, right  in
\nrejecting the claim of the Company in that behalf.
\nThe  expression “electricals” is somewhat vague.  But  in  a
\nfactory\t manufacturing\tcotton and other  textiles,  certain
\nelectrical  equipment  in the present stage  of\t development
\nwould  be  commercially necessary.   For  instance,  without
\nelectric lighting it would be very difficult to carry on the
\nbusiness.   Again electrical humidifiers, exhaust  fans\t and
\nsimilar electrical equipment would in the modern  conditions
\nof   technological  development\t normally  be  regarded\t  as
\nequipment  necessary  to  effectually  carry  on  the  manu-
\nfacturing  process.  We are not prepared to agree  with\t the
\nHigh Court that in order that “electrical equipment”  should
\nfall  within the terms of Rule 13, it must be an  ingredient
\nof  the\t finished  goods to be prepared, or “it\t must  be  a
\ncommodity  which  is used in the creation  of  goods”.\t If,
\nhaving\t regard\t to  normal  conditions\t prevalent  in\t the
\nindustry,   production\tof  the\t finished  goods  would\t  be
\ndifficult  without  the\t use of\t electrical  equipment,\t the
\nequipment
\n908<\/span>
\nwould be regarded as intended for use in the manufacture  of
\ngoods  for  sale  and  such a  test,  in  our  judgment,  is
\nsatisfied  by the expression “electricals”.  ‘Ibis would  of
\ncourse\t not  include  electrical  equipment  not   directly
\nconnected with the process of manufacture.  Office equipment
\nsuch as fans, coolers, air-conditioning units, would not  be
\nadmissible to special rates under s. 8(1).
\nWe  therefore set aside the order passed by the\t High  Court
\nand direct that the order passed by the Sales Tax Officer be
\nmodified by deleting from paragraph-4 of the order the words
\n“drawing materials, photographic materials and electricals”.
\nThe rest of the order of the Sales Tax Officer will stand.
\nThe  Company has substantially succeeded.  The\tappeal\tmust
\ntherefore be allowed with costs.\n<\/p>\n
Appeal allowed.\n<\/p>\n
910<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India M\/S. J. K. Cotton Spinning & … vs Sales Tax Officer, Kanpur And … on 28 October, 1964 Equivalent citations: 1965 AIR 1310, 1965 SCR (1) 900 Author: S C. Bench: Shah, J.C. PETITIONER: M\/S. J. K. COTTON SPINNING & WEAVING NULLS CO. LTD. Vs. RESPONDENT: SALES TAX OFFICER, KANPUR AND […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-204591","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nM\/S. J. K. 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