TMI Blog2023 (3) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... relied on previous decisions such as Commissioner of Sales Tax Vs. Pio Food Packers [ 1980 (5) TMI 30 - SUPREME COURT ], and Chowgule and Company(P) Limited Vs. Union of India [ 1980 (11) TMI 61 - SUPREME COURT ] to state that the manufacturing process can vary, and that the process of producing every type of variation, or finishing of goods, would not amount to manufacture as contained in the statute unless it resulted in the emergence of a new commercial commodity. In Sonhbadra [ 2006 (8) TMI 304 - SUPREME COURT ], this court while deciding the facts of the case before it cited a large number of decisions rendered in the context of what was meant by manufacture. This court specifically noticed in Union of India V. Delhi Cloth and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sult in a new product, and therefore did not result from the process of manufacture as defined under Section 2(e)(i) of the U.P. Trade Tax Act, 1948 ( Act ). 2. The facts in all these cases are that the assessees are dealers in inter alia paints. The Revenue contended that the sale of paints which had undergone mixing (through a computerised process with the aid of a DTS machine) amounted to manufacture , thereby resulting in a new product, which was a fresh incidence of taxation. The assessee on the other hand contended that mixing per se did not amount to manufacture , and that on an application of the established principles, no new recognizable product or article had emerged from the process. It is a matter of record that bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an interpretation of the expression manufacture in the same enactment. In Sonebhadra Fuels, the court had considered whether coal briquettes fell with the generic description of coal . This court held that the process involved mixing crushed coal with suitable binders pressed in briquetting press, from which regular shaped briquettes were suitably carbonised. This process was held to amount to manufacture . 6. The definition of manufacture under the Act is as follows: - 2 (e-1). manufacture means producing, making, mining, collecting, extracting, altering, ornamenting, finishing or otherwise processing, treating or adapting any goods; but does not include such manufactures or manufacturing processes as may be prescribed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent article, it would amount to manufacturing . The tipping point, or the determinative test, therefore is that the result of the process (amounting to manufacture ) must be the emergence of a commercially recognizable new commodity, and not mere variation of an existing one. 9. In the present case, the findings based on the expert s evidence are that the base paint was mixed with colouring as an additive. Both of these had suffered tax. The resultant article i.e., the paint of a different shade, did not result in a new commercial product. In common parlance, the new product was nothing else but paint , and not a different article. 10. In these circumstances, in the opinion of this Court, the High Court did not fall into error ..... X X X X Extracts X X X X X X X X Extracts X X X X
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