JUDGMENT Rajesh Kumar, J.
1. Present revision under Section 11 of U.P. Sales Tax act (hereinafter referred to as "Act") is directed against the order of Tribunal dated 07.12.1992 relating to the assessment year 1992-93 under the U.P. Sales Tax Act.
2. Applicant was carrying on the business of manufacture and sales of fertilizer and applied for registration under Section 7(2) of Central Sales Tax Act. Few items for which the registration was applied were iron, steel and cement which according to the applicant were required for use in the construction of chimney, ammonia silo and prilling towers. Assessing authority refused to grant the registration for iron, steel and cement required to be used for construction of chimney, ammonia silo and prilling towers on the ground that these were not the items used in the manufacture of fertilizer. First appeal, filed by the applicant was rejected Tribunal has also rejected the appeal.
3. Heard learned counsel for the parties.
4. Learned counsel for the applicant submitted that chimney, ammonia silo and prilling towers falls under plant and they are essentially required in the manufacturing of fertilizers, therefore, iron, steel and cement used in the construction of chimney, ammonia silo and prilling towers are eligible for registration under the Central Sales Tax Act. He further submitted that the aforesaid three items are not available in the market and they are to be constructed at site and therefore, the material used in the construction of the aforesaid three items are also eligible for exemption. Learned Standing Counsel has supported the order of the Tribunal.
5. I do not find any force in the argument of the learned for the applicant, Section 8(3)(b) of the Central Sales Tax reads as follows:
8. Rates of tax on sales in the course of Inter-State trade or commerce:
(3) The goods referred to in Clause (b) of Sub-section (1)-
(a) Omitted:
(b) ... are goods of the class or classes specified in the certificate of registration of the recognised dealer purchasing the goods as being intended for resale by him or subject to any rules made by the Central Government in this behalf, for use by him in the manufacture of processing of goods for sale or in mining or in the generation or distribution of electricity or any other form of power;"
9. Section 13 conferred power upon the Central Government, to make rules on several matters including enumeration of goods or class of goods used in the manufacture or processing of goods for sale or in mining or in the generation or distribution of electricity or any other form of power. In exercise of this power, Rule 13 was framed by the Central Government, which as amended read at the material time, as follows:
"The goods referred to in Clause (b) of Sub-section (3) of Section 8, which a registered dealer may purchase shall be goods intended for use by him as raw materials, processing materials, machinery, plant, equipment, tools stores, spare parts, accessories, fuel or lubricants, in the manufacture or processing of goods for sale or in mining, or in the generation or distribution of electricity or any other form of power."
10. Issue involved in the present revision is squarely covered by the decision of the Apex Court in the case of J.K. Cotton Spining & Weaving Mills Co. Ltd. v. The Sales Tax Officer, Kanpur and Anr., reported in 16 STC, 563. In the aforesaid case company was engaged in the manufacturing and sale of cotton textile, tiles and other commodities.
11. The building materials including lime, cement, which were not required in the manufacture of tiles has been held not covered under Rule 13, Apex Court held as follows:
"In our judgment if a process or activity is so integrally related to the ultimate manufacture of goods so that without that process or activity manufacture may, even if theoretically possible, be commercially inexpedient, goods intended for use in the process or activity as specified in Rule 13 will qualify for special treatment. This is not to say that every category of goods, " in connection with" manufacture of, or "in relation to" manufacture, or which facilities the conduct of the business of manufacture will be included within Rule 13. Attention in this connection may be invited to a judgment in this Court in which it was held that vehicles used by a company (which mined are and turned out copper in carrying on activities as a miner and as a manufacture) fell within Rule 13, even if the vehicles were used merely for removing are from the mine to the factory, and finished goods from the factory to the place of storage. Spare parts and accessories required for the effective operation of those vehicles were also held to fall within Rule 13. See Indian Copper Corporation Ltd. v. Commissioner of commercial Taxes, Bihar and Ors.
Building materials including lime and cement not required in the manufacture of tiles for sale cannot, however, be regarded within the meaning of Rule 13, as raw materials in the manufacture or processing of goods or even as plant". It is true that building must be constructed for housing the factory in which machinery is installed. Whether a building is a "plant" within the meaning of Rule 13, is a difficult question on which no opinion need be expressed. But to qualify for specification under Section 8(3)(b) goods must be intended for use of the nature mentioned in Rule 13, in the manufacture of goods. Building materials used as raw materials for construction of "plant" cannot be said to be used as plant in the manufacture of goods. The Legislature has contemplated that the goods to qualify under Section 8(3)(b) must be intended for use as raw materials or as plant, or as equipment in the manufacture or processing of goods, and it cannot be said that building materials fall within this description. The High Court was, therefore, right in rejecting the claim of the Company in that behalf."
12. Under Rule 13 of the Central Sales Tax registration rules the plant, machinery, equipment are eligible for registration for the purpose of the concessional rate of tax under Clause (b) of Sub-section (3) of Section 8. Even assuming that the chimney, ammonia silo and prilling towers falls under "plant" but the iron, steel and cement is required for the construction of such plant. The items, which is required for the construction of the plant are eligible under the Rules.
13. For the reasons states above, revision has no force and is accordingly, dismissed.