TMI Blog1987 (4) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... f the powers conferred on the State Government by section 12 of the Madhya Pradesh General Sales Tax Act, 1958 (hereinafter referred to as "the Act"). By that notification, exemption was granted from payment of sales tax to the class of dealers specified in the notification, subject to the conditions and restrictions set out in the notification. The petitioner contends that though the petitioner fulfilled all the necessary conditions for grant of eligibility certificate under the notification, he was not granted that certificate on the ground that the petitioner was not engaged in any manufacturing process and hence was not entitled to any exemption. Aggrieved by this refusal to issue the eligibility certificate, the petitioner has filed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (No. 2 of ment of Pradesh General Sales Tax 1959); production. Act, 1958, and shall produce (b) are registered as before the assessing authosmall-scale indusrity at the time of his assesstrial units with the ment a certificate issued by Industries Departthe Director of Industries, ment of the GovernMadhya Pradesh, or any ment of Madhya officer authorised by him for Pradesh; and the purpose, certifying that (c) have set up indussuch dealer is eligible to try in any of the claim the exemption and districts specified in that he has not opted for the Part I of the Annescheme of deferring the payxure. ment of tax under the rules framed for this purpose. " Now, it is not disputed that the petitioner has set up an industry at Indore, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mixture could be said to have been 'processed' after the purchase within the meaning of the proviso to section 8(a), so as to preclude the assessees from being entitled to deduct from their turnover under section 8(a) the value of the tea purchased by them. The High Court of Bombay held that the different brands of tea purchased by the assessees could not be regarded as 'processed' within the meaning of the proviso to clause (a) of section 8, because there was 'not even application of mechanical force so as to subject the commodity to a process, manufacture, development or preparation' and the commodity remained in the same condition. The argument of the Revenue before us was that this decision of the Bombay High Court was on all fours with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued under section 12 of the Act, "blending of tea" is one of the industrial units specified, to whom exemption under the notification would not be available. This shows that but for this provision, exemption would have been available. Such a provision was not incorporated in the notification dated 23rd October, 1981. Under the circumstances, it must be held that the refusal to issue eligibility certificate to the petitioner was not justified. 5. For all these reasons, this petition is allowed. The respondents are directed to issue an eligibility certificate to the petitioner in accordance with the provisions of the notification dated 23rd October, 1981 (annexure 3). In the circumstances of the case, parties shall bear their own costs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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