- (1.) The Indian Copper Corporation Ltd., is a Company incorporated under the laws of the United Kingdom and has its registered office for the purpose of its business in India at Ghatsila, District Singhbhum in the State of Bihar. The Corporation mines copper and iron ore from its own mines, transports the ore to its factory and manufactures finished products from the ore for sale. The Corporation has for the purpose of its business to purchase diverse categories of goods from outside the State of Bihar. Some of those goods are used in its factory in the process of manufacture and in the copper and kyanite mines, other goods are purchased for use in its offices, factory and mines and in the hospitals set up for affording medical facilities to its employees.
(2.) On April 30, 1957 the Corporation applied to the Superintendent of Sales Tax, Jamshedpur, for registration as a dealer under the Central Sales Tax Act (74 of 1956) setting out a list of goods for specification in the certificate of registration under S. 8 of the Act. The Superintendent of Sales Tax issued the certificate of registration to the Corporation without specifying certain categories of goods which the Corporation claimed should be specified under S. 8(3)(b) of the Act. The Corporation then petitioned the High Court of Patna under Articles 226 and 227 of the Constitution for an order that the Superintendent of Sales Tax be directed to specify in the goods mentioned in paragraph 4 of the petition in the certificate of registration granted to the petitioner, on June 24, 1957 and to forbear from levying or realising tax under the Central Sales Tax Act from the Corporation in excess of one per cent. under S. 8(1) of the Central Sales Tax Act. The goods in respect of which the Corporation claimed specification in the certificate of registration were the following : (i) Locomotives and motor vehicles; (ii) Accessories and spare parts for motorvehicles and locomotives; (iii)House-hold, laboratory, hospital and general furnishings and fittings; (iv) Medical supplies; (v) Stationery; (vi) Tyres and tubes for motor vehicles; and (vii) Cane baskets.
(3.) The High Court was of the view that the following categories of goods fell within the terms of S. 8(3)(b) of the Central Sales Tax Act and could be specified in the certificate of registration: (i) Locomotives and motor vehicles actually used in carrying and removing raw materials during the process of manufacture; (ii) Locomotives and motor vehicles used both underground and on the surface during mining operations; (iii) Accessories and spare parts for such locomotives and such motor vehicles; (iv) Tyres and tubes for such motor vehicles; and (v) Laboratory fittings used for sampling and analysis of the ores and other raw materials in the initial stages of mining operations and in the process of manufacture.;