Central Sales Tax

Savita (Querist) 19 May 2009 This query is : Resolved
Dear Friends,

My Company manufactures Malt by germinating barley in germination boxes. Germination boxes are made as cemented structures by using building material. Now, sales tax authorities argues that germination boxes are part of building while my company argues that it's a part of Plant & Machinery because without making germination boxes we cannot germinate barley for making Malt.

We want to make some more germination boxes and wants to buy material by using 'C' form under Central Sales Tax Act.

Please guide me that how should we proove before the sales tax authorities that germination boxes are a part of plant & machinery. Please also quote some case laws on this.

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s.subramanian (Expert) 31 October 2010
Your stand is right. They form part of the plant and machinery only since they are used in the manufacturing process.The cannot be treated as a part of the building since it is not put to any such use at all.

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