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1998 (9) TMI 507 - SC - VAT and Sales TaxWhether appellant liable to pay tax on the sale of refined oil as they had already paid tax for purchase of the crude oil and, if so, what would be the rate thereof? Held that:- Appeal dismissed. The quoted cases does not come in aid of the appellant: firstly, because it considered the definition of “manufacture” (which, of course, is identical with its definition under the Act) in the context of “resale” of goods as defined in that Act and secondly, because of the nature and extent of the process which the crude oil undergoes to radically change itself to marketable refined oil. The other contention raised by Mr. Swarup was that they had purchased the crude oil after payment of tax and hence they cannot be made liable to pay tax again for its sale. This contention has to be stated only to be rejected for the Act expressly provides imposition of multistage taxation under clauses (ii) and (iii) of section 3(3)(b) of the Act.
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