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4. Before enumerating the rival submissions, it is necessary to set out the main provisions of the Act which are relevant for the purposes of this petition.

Section 15B reads as under :

"15B. Purchase tax on raw or processing materials or consumable stores used in manufacture of goods.--Where a dealer who being liable to pay tax under this Act purchases either directly or through a commission agent any taxable goods (not being declared goods) and uses them as raw or processing materials or consumable stores, in the manufacture of taxable goods, then there shall be levied in addition to any tax levied under the other provisions of this Act, a purchase tax at the rate of--

Sub-section (3) of Section 49 provides for laying of notifications before the State Legislature.

Rule 42E reads as under :

"42E. Drawback, set-off or refund of purchase tax under Section 15B.--In assessing the purchase tax levied under Section 15B and payable by dealer (hereinafter referred to as "the assessee") the Commissioner shall subject to conditions of Rule 47 in so far as they apply, and further conditions specified below, grant him a drawback, set-off or as the case may be, refund of the whole of the purchase tax paid in respect of purchase of goods effected on and from the 1st April, 1986 used by him, as raw materials, processing materials, or consumable stores, in the manufacture of taxable goods.

Conditions:--(1) The assessee is a registered dealer, (2) The goods purchased are taxable goods other than declared goods, (3) The said goods have been used by the assessee within the State as raw materials or processing materials or consumable stores in the manufacture of taxable goods, (4) The goods so manufactured have been sold by the assessee in the State of Gujarat."

5. Mr. K.H. Kaji, learned counsel for the petitioner, has vehemently contended as under :

5.1. User of taxable raw materials in the manufacture of taxable goods is sine qua mm for levy of additional purchase tax under Section 15B. Section 2(33) of the Act specifically provides that the goods exempted from sales tax under the notifications under Section 49(2) go out of the definition of "taxable goods". Since the petitioner is manufacturing goods which are exempted from sales tax. pursuant to the notifications under Section 49(2) of the Act, there could be no levy of purchase tax under Section 15B of the Act.

'(4) The goods purchased are goods, the sale or purchase of which is liable to tax under this Act ;

(5) Such purchase is in circumstances in which no tax is payable under Section 3, 4 or 5, as the case may be.' Analysing these ingredients of Section 7-A, the aforesaid observations were made by the Supreme Court. It is true that in the present case, there is a clear definition of taxable goods ; while in Tamil Nadu Act, on the ingredients of Sub-sections (4) and (5), the Supreme Court held that these sub-sections contained definition of taxable goods. However, the result remains the same. Ingredients of Subsections (4) and (5) of Tamil Nadu Act are parallel to the provisions found in the definition of taxable goods in Section 2(33) of the Gujarat Act. Therefore, it must be held on parity of reasoning, that the phrase "uses them as raw material or processing materials or consumable stores in the manufacture of taxable goods" as employed by Section 15B would mean user of such raw material in the manufacturing process for manufacturing generally taxable goods under the Act and ultimately, in given circumstances, such manufactured goods may not attract tax under the charging provision and still they would remain taxable goods. It is, therefore, not possible to agree with the contention of the petitioners that charging event under Section 15B would be manufacture of taxable goods. As already discussed earlier, charging event would stop short at the stage of utilisation of the purchased raw material in the manufacturing process of taxable goods. Ultimately such taxable goods may emerge or not. That would be totally irrelevant, but the charge would operate under the section of its own the moment goods are purchased and utilised as raw materials, etc., in the manufacturing process of generally taxable goods."