METTUR CHEMICAL AND INDUSTRIAL CORPORATION Vs. COMMERCIAL TAX OFFICER SALEM

JUDGEMENT

(1.) THE COMMERCIAL TAX OFFICER, SALEM, AND OTHERS. Petition under Article 226 of the Constitution of India, praying that in the circumstances stated in the affidavit filed therewith the High Court will be pleased to issue a writ of mandamus calling for the records in the 1st respondent's L. Dis. B. 1-1711/61 dated 4th March, 1961, and confirmed in the 2nd respondent's L. Dis. No. 1901 of 1961 dated 17th March, 1961, and direct the 1st respondent to issue to the petitioner a book of blank declaration forms prescribed under Madras Act I of 1959 in Form XVII etc. Writ Petitions Nos. 445 of 1961 and 1045 of 1962, decided on April 17, 1963. K. Rajah Ayyar and K. Hariharan, for the petitioners. S. Mohan for the Additional Government Pleader, for the respondents.

(2.) BOTH the petitioners claim to be manufacturers of vanaspati in Madras State. In addition, the petitioner in W.P. No. 445 of 1961 manufactures soaps. On the sales of vanaspati and soaps assessments have been made to sales tax at the prescribed rate. The validity of these assessments is not in question. It is stated that groundnut oil is a component part of vanaspati or soap. Section 3(2) of the Madras General Sales Tax Act, 1959 provides for tax at a single point in relation to all goods mentioned in the First Schedule. Further concession in the rate of tax is provided by sub-section (3) in respect of those goods in the first schedule provided the sale thereof by the dealer to another is for use by the latter as component part of any other goods mentioned in that schedule. Sub-section (3) reads :-

(3.) IN respect of the purchase of groundnut oil made by the petitioners for use by them in the manufacture of either vanaspati or soap or both, as the case may be, they applied to the prescribed authority for the supply of blank declaration forms in Form XVII. The Commercial Tax Officer in the case of the petitioner in W.P. No. 445 of 1961, informed him by his communication dated 4th March, 1961, that the forms could not be supplied because in his opinion the goods mentioned in the application of the petitioner did not form separable component parts of such goods. The Commercial Tax Officer's order reads :-