Document Fragment View

Matching Fragments

4. Section 5-B of the Act before it was amended by Act No. 4 of 1989 with effect from January 21, 1989, was in the following terms :

"5-B. Levy of concessional tax in respect of component parts, etc. - (1) Notwithstanding anything in this Act, every dealer shall pay, in respect of any sale of goods specified in a scheme published by the State Government by notification to another for use by the latter as raw material, component part, sub-assembly part, intermediate part, consumables and packing material of any other goods specified in the said scheme, which he intends to manufacture inside the State for sale in the State or in the course of inter-State trade or commerce, a tax, at such rate not exceeding four paise in the rupee, as may be specified in the said scheme, on the turnover relating to such sale :

8. It is not in dispute that prior to January 21, 1989, the petitioners were getting the benefit of lower rate of tax under section 5-B, as it stood then; their declarations were accepted and certificates were issued to them.

9. Section 5-B was amended by Ordinance 2 of 1989, which was replaced subsequently by Act No. 4 of 1989 with effect from January 21, 1989. After the amendment, section 5-B reads :

"Levy of concessional tax in respect of certain goods. - (1) Notwithstanding anything in this Act, every dealer shall pay, in respect of any sale of goods to another dealer for use by the latter as raw material, component part, sub-assembly part, intermediate part, consumables and packing material of any other goods which he intends to manufacture inside the State, a tax at the rate of four paise in the rupee or the rates specified in sections 5, 5-A and 6-B in respect of goods other than declared goods, or sections 6, 6-A and 6-B in respect of declared goods, whichever is lower on the turnover relating to such sale :
"30-A. (1) Every manufacturer who intends to purchase raw materials, component parts, sub-assembly parts, intermediate parts, consumables and packing materials for use in the manufacture of any other goods inside the State shall submit an application in form G1 to the assessing authority for registration as a manufacturer. Where the manufacturer has more than one place of manufacture a single application may be submitted for registration of all such places of manufacture :
(2) The assessing authority receiving the application shall, if he is satisfied after making such enquiry as he considers necessary that the application is bona fide and the particulars contained therein are correct and complete, register the manufacturer and shall issue a certificate to the manufacturer in form G2 within 30 days from the date of application. Where the manufacturer has more than one place of manufacture a copy of such certificate for every place of manufacture within the State shall be issued.

31. A provision like section 5-B which confers the benefit of lower rate of tax, must be interpreted strictly. He who claims the exemption must establish it. We cannot read into the provision any intention of the Legislature not reflected in the language employed. "In a taxing statute", Rowlatt, J., said "one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to tax. Nothing is to be read in, nothing is to be implied. One can only look, fairly at the language used" (Cape Brandy Syndicate v. Inland Revenue Commissioner [1921] 1 KB 64). The explicit language of section 5-B rules out the possibility of a dealer "not having his manufacturing unit" seeking the benefit of lower rate of tax : it is not a provision conferring benefit on manufacturers in general who engage in the activity of production of finished goods in the State with raw materials, component units and intermediate parts purchased from dealers in the State. We cannot narrow down the definite language against the State and stretch it in favour of the petitioners. The benefit covers only one class of dealers-those having their manufacturing units within the State, but, not others. We are, therefore, of the view that the rejection of the request of the petitioners by the authorities for issue of form G for the purpose of registration as manufacturers cannot be faulted.