Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2016 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 857 - HC - VAT and Sales TaxClaim of exemption from tax and Central Sales Tax (CST) - sale by the dealer to the exporter against Form-H - Nature of activity / processing amount to Manufacturing process or not - Section 2(16) of the Gujarat Sales Tax Act - Castor oil - conversion of commercial grade Castor oil to First Special Grade after refining process - Held that: - The word as may be prescribed as used under this definition clause is attracting the provision contained under Rule 3 of the rules in which the prescription is made and therefore, referring to this Rule 3 it can be seen that the process which has underwent on their product is not a manufacturing process and therefore, conjoin effect of the aforesaid statutory provision, it appears that the learned Tribunal has rightly come to the conclusion that the process carried out was not a manufacturing process as defined under Section 2(16) of the GST Act - reliance placed on the decision of SHYAM OIL CAKE LTD. Versus COLLECTOR OF CENTRAL EXCISE, JAIPUR [2004 (11) TMI 109 - SUPREME COURT OF INDIA] where it was held that merely because some process is carried out on the substance, the same is not to be treated as manufacturing process. Whether the goods exported by the exporter was the same goods purchased from the respondent (dealer) and consequently sale by the dealer to the exporter would be sale prior to export sale and would be covered by section 5(3) of the Central Act? - Held that: - wherein the basic characteristic and the use is not drastically changed and since the learned Tribunal has come to the conclusion specifically with examination of process of the material sold by the purchaser is not out of any manufacturing process and therefore, the claim of exemption from the said Sales Tax Act is justified. The categorical finding that exporter who had purchased Castor oil from the opponent herein has not sold the Castor oil in the same form, but has done some process and therefore, it cannot be considered as a manufacturing process and therefore, it appears to this court also that the learned Tribunal has rightly come to the conclusion in passing the order impugned in the appeal. No illegality or irregularity of any nature committed by the learned Tribunal - appeal dismissed - decided in favor of Tribunal.
|