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2014 (4) TMI 327 - HC - VAT and Sales TaxEntitlement for Deduction/ Exemption – Classification - Dry fruits – unprocessed salted or roasted – Interpretation - Held that:- Judgment in Tungabhadra Industries Ltd v The Commercial Tax Officer, Kurnool [1960 (10) TMI 51 - SUPREME COURT OF INDIA] and Dunlop India Ltd. & Madras Rubber Factory Ltd. vs Union of India & Ors [1975 (10) TMI 94 - SUPREME COURT OF INDIA] followed – In manufacturing groundnut oil from purchased groundnuts and refining the oil and hydrogenation to converting it into Vanaspati, no change had occurred in its essential nature and it remained an oil - a glyceride of fatty acids- that it was when it issued out of the press - Entry 31 specifically stated “fried grams” during the period 10.04.2005 to 10.05.2005 - It was subsequently amended with effect from 11-05-2005 to read “Fried and roasted grams” - This suggests that the legislature was aware about the process of roasting and could have provided for it - However, that aspect by itself cannot be conclusive; what is important in the given circumstances is the process of salting or roasting do not change or transform dry fruits into something else - The Court relied upon Dunlop India Ltd. & Madras Rubber Factory Ltd. vs Union of India & Ors [1975 (10) TMI 94 - SUPREME COURT OF INDIA] Similarly, dry fruits – unprocessed salted or roasted- have equal claim to be classified as kirana items under Entry 81 of Schedule III to the Act - Roasting or salting does not result in the creation of a new article, or a significantly altered one as to amount to “manufacture” - Consequently it would be inappropriate to relegate them to the orphanage of the residuary item - The goods are, therefore, held to be classifiable under Entry 81 of the third schedule to the DVAT Act - The appeal is consequently allowed - Decided in favour of the assessee.
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