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2016 (7) TMI 287 - ALLAHABAD HIGH COURTInput Tax Credit - Manufacturing activity or not - UP VAT - business of sale and purchase of Eucalyptus wood and bamboo - Tribunal observed that, the alleged process of debarking and cutting of wood and bamboo does not result in any new finished commercial item totally different in identity to wood and bamboo, therefore, the process does not involve any manufacture. Consequently the benefit of I.T.C. under Section 13 is not available to the revisionist. Held that:- it is evident that every type of operation of the goods or finishing of goods would not amount to manufacture unless it results in emergence of a new commercial commodity, therefore, the contention of the petitioner herein that debarking and cutting of wood, removing of roots involve processing of the original product wood and bamboo resulting in a new item, is unacceptable, as, the new item is nothing but wood and bamboo which do not have an identity totally different from the original product nor does it result in emergence of a new commercial commodity. For the reasons aforesaid the judgment of the Tribunal cannot be faulted and once it is held that no manufacture was involved in the alleged process, the benefit of Section 13(1)(a) read with Explanation 3 could not be extended to the revisionist. - Decided against the assessee.
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