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2015 (11) TMI 262 - GAUHATI HIGH COURTChallenge to rule 57A of Assam Value Added Tax Rules, 2005 - Specific activities which are not to be treated as manufacture - Availment of tax benefit - request for grant of eligibility certificate - Held that:- rule 57A framed by way of delegated legislation is beyond the competence of the State. The definition of "manufacture" in the Act clearly discloses that the process of manufacture would mean that the process of change in the product and bringing out a new product or combination of products in the process to bring out a new product would amount to manufacture. The process of making coal from coke will bring a new product from the coal; therefore, it amounts to manufacture within the definition of section 2(30) of the Act. Under the guise of the rule-making power, the State could not have amended the definition of "manufacture" to omit or to alter the activities, which come within the definition of "manufacture", that apart, the decision of the Supreme Court in Mahabir Vegetable Oils (P.) Ltd. (2006 (3) TMI 234 - Supreme Court) succinctly makes a distinction between the legislation and subordinate legislation and the limitation of subordinate legislation. Delegated legislation cannot take away the right that is vested or accrued by way of retrospective amendment. Therefore, in view of the said reasons, we hold that the amended rule 57A(1) ultra vires the provisions of the definition of "manufacture" under the Act and beyond the competence of rule-making power to alter the definition of "manufacture". Dispute with regard to the date on which the industry was set up and it commenced the commercial production. - Held that:- disputes are basically questions of fact, which has to be resolved by the industries Department where the application for grant of eligibility certificate is pending - Petition disposed of.
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