TMI Blog2004 (5) TMI 555X X X X Extracts X X X X X X X X Extracts X X X X ..... Dawakhana [1984] 56 STC 133; [1984] UPTC 224? Heard the learned Standing Counsel and perused the record. None appeared for the dealer-opposite party. The dealer-opposite party deals in spices and condiments. These are locally purchased tax-paid goods. The appellant grinds spices and condiments and in some cases it mixes them together and sells them accordingly for the last several years. For the assessment year in question the department accepted the book version of the dealer. However, the assessing officer was of the opinion that the grinding activity of the dealer amounts manufacturing and as such levied tax on the grinded masala, though tax paid sabut masala was purchased. This part of the order of the assessing officer has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to a third Member. The third Member agreed that by grinding whole masala no new commercial commodity has come into existence. This finding could not be disputed by the learned Standing Counsel except that the activity of grinding is processing and therefore the dealer is a manufacturer. I am unable to agree with the aforesaid contention of the learned Standing Counsel. The notification mentioned above, does not use the word whole or grinded . It simply enumerates the various kinds of masala. The Supreme Court in the case of Commissioner of Sales Tax v. Lal Kunwa Stone Crusher (P) Ltd. [2000] 118 STC 287; [2000] 3 SCC 525 has held vide paragraphs 4 and 5 as follows: 4 . . . Each one of the items enumerates various goods, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all. In fact the term stone is wide enough to include the various forms such as gitti, kankar, stone ballast. In that view of the matter, we think that the view taken by the majority of the Tribunal and affirmed by the High Court stands to reason. We are, therefore, not inclined to interfere with the same. The aforesaid judgment of the Supreme Court has been followed in State of Maharashtra v. Maha Laxmi Stores [2003] 129 STC 79 (SC); [2003] 1 SCC 70. In view of the aforesaid judgments I am of the opinion that grinding of sabut masala does not amount to manufacture within the meaning of section 2(e-1) of the U.P. Sales Tax Act. In the result there is no merit in the revisions. Both the revisions are dismissed. - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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