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2006 (9) TMI 279 - SC - VAT and Sales TaxWhether the appellants be treated as manufacturers? Held that:- Whether an activity amounts to manufacture has to be factually determined. There cannot be a direction to treat a particular type of transaction to be a manufacturing activity without examining the factual scenario. There cannot be a generalisation in such matters. Learned counsel for the State submission that even purchases from a person who is not a registered dealer is also liable to tax in terms of section 3-AAAA of the Act and the circular is, therefore, in order is not acceptable for the simple reason that in section 3-AAAA the sine qua non for liability is that the goods must be liable to tax under the Act. That aspect has to be factually determined. The Commissioner's circular is not and cannot be a substitute for such determination. The assessments in these cases appear to have been done solely on the basis of the view expressed in the circular. Therefore, set aside the assessments/appellate orders under challenge and direct the assessing officer to consider the case of the appellants with out treating them to be manufacturers for the purpose of levy of tax, solely on the basis of the circular.
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