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2014 (4) TMI 754 - SUPREME COURTSales Tax Exemption Policy – Nature of Work - Purchase of raw materials for iron and steel based industry for manufacturing activity - Annexure V(2) – Bihar Finance Act, 1981 – Manufacturing Activity – Classification – Interpretation of Statute - Held 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 – This Court has noticed that the raw material that is purchased by assessee is a steel scrap and what is produced with the steel scrap are agricultural implements and the household articles - The activity of assessee would certainly fit into the definition of 'Manufacture' to qualify for the grant of exemption under the notification – Relied upon Ashirwad Ispat Udyog and others Versus State Level Committee and others [1998 (11) TMI 527 - SUPREME COURT OF INDIA] - Raw material with the help of a shearing machine is cut as per requirement - After some time it become hard - This hard sheet is then put in a furnace so that it 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.
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