Venkataramiah, J. - (1.) Since a common question of law is involved in these two appeals by special leave, they are disposed of by this common judgment.
(2.) the appellant in Civil Appeal No. 1185 of 1979 is M/s. Hindustan Brown Boveri Ltd., a company engaged in the business of manufacturing certain goods which are used in electrical undertakings for the purpose of generating and distributing electrical energy. It is registered as dealer under the provisions of the Gujarat Sales Tax Act, 1969 (Gujarat Act No. 1 of 1970) (hereinafter referred to as 'the Act'). For the purpose of manufacturing the goods, the appellant which was also a recognised dealer under the Act purchased raw materials during the period between May 6, 1970 and March 31, 1971 after furnishing a certificate in Form No. 19 as provided under Section 13 (1) (B) of the Act read with Rule 24 (4) of the Gujarat Sales Tax Rules, 1970 (hereinafter referred to as 'the Rules') framed under the Act stating that the raw materials purchased by it would be used in manufacturing taxable goods which would be sold by it in the State of Gujarat. Some part of the goods manufactured by the appellant were sold to a certain electrical undertaking in the State of Gujarat against 'C' forms in order to claim exemption from payment of tax on the said sales under the Act by virtue of a notification issued tinder Section 49 (2) of the Act exempting the goods sold to electrical undertakings for being used in generation and distribution of electrical energy. On coming to know of the said sales, the Sales Tax Officer, who was the assessing authority under the Act levied purchase tax under Section 16 of the Act on the raw materials purchased by the appellant on the ground that the undertaking given in Form No. 19 had been violated. The appeals filed by the appellant before the Assistant Commissioner of Sales Tax and the Gujarat Sales Tax Tribunal against the said levy were unsuccessful. Thereafter at the instance of the appellant, the Tribunal referred the following question of law to the High Court of Gujarat under Section 69 of the Act:- "Whether on the facts and in the circumstances of the case, and on a correct interpretation of sub-section (33) of Section 2 of the Gujarat Sales Tax Act. 1969 the Tribunal was right in deciding that the applicant was liable to pay purchase tax under Section 16 of the Gujarat Sales Tax Act, 1969 on the ground that certain electric goods manufactured out of raw materials etc. purchased against declaration in Form 19 were sold to Gujarat State Electricity Board against declarations in Form C prescribed in Entry 5 of the Government Notification issued under Section 49 of the Gujarat Sales Tax Act, 1959 -
(3.) The appellant in Civil Appeal No. 1187 of 1979 is M/s. Elecon Engineering Co. Ltd. which is engaged in manufacturing heavy machinery and gear conveyers. It is also a recognised dealer under the Act. Like the appellant in Civil Appeal in 1185 of 1979, this appellant also purchased raw materials by furnishing certificates in Form No. 19 and later on sold a part of the goods manufactured by it to a certain electrical undertaking against Form No. 'C' and claimed exemption under the notification issued under Section 49 (2) of the Act. In this case also the Sales Tax Officer levied purchase tax under Section 16 of the Act for violation of the undertaking given in Form No. 19. The appeals to the Assistant Commissioner of Sales Tax and the Gujarat Sales Tax Tribunal failed. Thereafter at the instance of the appellant, the Gujarat Sales Tax Tribunal referred the following question for the opinion of the High Court of Gujarat: "Whether on the facts and in the circumstances of the case, the Tribunal is justified in holding that the sales of machineries and conveyers manufactured by the applicant to an electrical undertaking against Form 'C' under Entry 5 of the Government Notification issued under Section 49 of the Gujarat Sales Tax Act, 1969 resulted in the breach of the declarations in Form 19 as the goods so manufactured and sold did not amount to manufacture of taxable goods -;