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2018 (11) TMI 807 - HC - VAT and Sales TaxActivity amounting to manufacture or not - lacquering of hardware and locks - U.P. Trade Tax Act, 1948 - Held that:- The correct and the only test is to be applied that laid down by the Supreme Court in the case of Sonebhadra Fuels Vs. Commissioner of Trade Tax, U.P. [2006 (8) TMI 304 - SUPREME COURT OF INDIA]. Applying that test, even according to the assessee's own case, it has been stated, by under going the process of lacquering, the goods namely hardware and locks became differently marketable and in fact, it was assessee's own case that different quality of lacquering imparted different price to the same goods. In any case, as a process of treating or finishing the goods, lacquering by very nature, as discussed by the Tribunal would be covered by the term finishing and treating or otherwise processing the goods - thus, the process is amounting to manufacture - decided against assessee and in favor of Revenue. Whether, the finding recorded by the Tribunal that the assessee had engaged in lacquering activity, on its own account, is based on any material and evidence? - Held that:- Though the assessing authority had made an observation to the effect that the one of the partner of the assessee's firm had admitted to have engaged in the activity of lacquering of goods, neither such statement has been extracted nor its substance considered by the Tribunal. On the other hand, before the Tribunal, the assessee appears to have taken categorical stand that he had not engaged in the activity of lacquering of goods and had denied existence of raw material, equipment and workmen to engage in such activity - The Tribunal had noted the case set up by the assessee but did not deal with it while recording its finding. A specific finding on this issue was necessary to be recorded to determine whether the assessee was the manufacturer of the goods - the order of the Tribunal to the extent it holds that the assessee was engaged in activity of manufacturing/lacquering is set aside and the matter is remitted to the Tribunal to pass a fresh order strictly on the basis of evidence led before it. Revision disposed off.
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