TMI Blog2014 (4) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... t becomes soft and thereafter agricultural and household articles are prepared. Relying upon Sonebhadra Fuels vs. Comm. Trade Tax [2006 (8) TMI 304 - SUPREME COURT OF INDIA] - Referred B.P. Mills Ltd vs. Sales Tax Tribunal [1998 (9) TMI 507 - SUPREME COURT OF INDIA] - Definition of 'manufacture' in Uttar Pradesh Trade Tax Act, 1948 is very wide to include processing, treating or adapting any goods and therefore it held that even if the processing of coal to make coal briquettes, did not amount to a different commercial commodity, eventhough it did, it would still amount to "manufacture" as it is processing, treating or adapting coal to make coal briquettes which are altogether different in shape, size, moisture and characteristics. Therefore, revisional authority and High Court was not justified in rejecting the request of the appellant for grant of exemption under Notification dated 04.04.1994 - Impugned judgment and order is set aside – Decided in favour of assessee. - Civil Apeal No. 4024 of 2004 - - - Dated:- 9-1-2014 - H. L. Dattu, Dipak Misra And S. A. Bobde,JJ. For the Appellant : Mr. Ambhoj Kr. Sinha, Adv., Mr. Krishnanand Pandeya,Adv., Mr. Amrendra Kr. Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, inter alia, directing the appellant to show cause as to why the certificate issued by the Deputy Commissioner of Commercial Taxes should not be revoked. 6. After receipt of the reply by the appellant, the Joint Commissioner of Commercial Taxes (Admn.) by his order dated 15.04.1998 had remanded the matter back to the Deputy Commissioner of Commercial Taxes with a direction to hold a fresh enquiry and pass appropriate orders in the light of certain observations made by him in the course of the order. 7. Aggrieved by the remand order so passed by the Joint Commissioner of Commercial Taxes, the appellant had approached the High Court of Patna, Ranchi in Writ Petition No. 1887 of 1998. The Writ Court after considering the material on record has come to the conclusion that the Joint Commissioner of Commissioner Taxes (Admn.) has not committed any error whatsoever which would call for interference under Article 226 and 227 of the Constitution of India. Thereafter the appellant had filed the review petition before the High Court which was also dismissed. 8. Against the orders passed by the Writ Court the appellant had approached this Court by way of the special leave pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of tax under the Act for a period of 7 years. 14. Learned counsel further argued that the appellant purchased iron and steel scrap and produced agricultural and household articles. Mere production of the aforesaid commodities will not come within the definition of the 'Manufacture' since there is no new article which comes into existence. 15. Before we advert to other details of the case, reference to the aforesaid Notification is necessary and therefore it is extracted: Annexure P-1 Notification S.O. 95 dated 4th April, 1994, the Governor of Bihar in exercise of powers conferred by Clause (b) in sub-section (3) of Section- 7 of Part-1 of Bihar Finance Act, 1981 (Bihar Act No.5 of 1981) grant exemption to following industrial units which are approved and registered by the Industry Department of Bihar Government or by the Competent Authority of Government of India and fall in the production between the period from 31st March, 1993 to 31st March. 1998 and the investment in their machinery and plant upto 1st April, 1993 does not exceed rupees 15 crores and manufacture goods for sale in the State of inter-state trade and in the course of commerce and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant in its business premises. The same is as under: Annexure -7 Inspection Report Dated 16.3.2000 1. Name of unit and address M/s. Steel India, Dargraha, Kalyanpur, Dhanbad. 2. Registration No. DH/ 423 / DH-1172(C) Inquiry Officers: 1. Ravindra Pd. Singh, 2. Rajendra Sahni, both Commercial Tax Officers, Dhanbad Ciccle, Dhanbad A sudden inspection was carried out at the place of business. The businessmen/ the unit carries on business of iron and steel. The persons present there informed us that all kinds of iron and steel defective cutting and rejects is cut and processed in the unit and agricultural and household articles are manufactured. The unit is registered as a small Scale Industrial Unit for the aforesaid work by the industries department. The unit purchases iron scrap, coil, slape in-cutting, prime steel ingot, cable plate, etc. from Bokaro Steel Plant, and the same is unloaded with the help of the electricity run over head crane whose capacity is 35 MT. It has been informed that this work was done by hired cran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommodity comes into existence. This view of the Deputy Commissioner of Commercial Taxes is not correct for the reason that the definition of 'Manufacture' that finds a place in the Act is wide enough to cover production, making, extracting, altering, ornamenting, finishing or otherwise processing of the raw material. In the instant case as we have noticed that the raw material that is purchased by the appellant is a steel scrap and what is produced with the steel scrap are agricultural implements and the household articles. Therefore, the activity of the appellant would certainly fit into the definition of 'Manufacture' to qualify for the grant of exemption under the notification. At this stage we refer to certain observations made in this Court in the case of Ashirwad Ispat Udyog (supra). This Court has stated as under: The appellants treat iron and steel scrap of considerable bulk by cutting it down by mechanical processes into pieces that may be conveniently utilised in rolling mills and foundries. Such treatment making saleable goods would in our opinion would fall within the wide definition of 'Manufacture' under Section 2(j) of the said Act. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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