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TMI Blog2008 (12) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... 03. The Revenue has raised the following questions of law for our consideration and decision. They are:- "(i) Whether the order of the Tribunal is sustainable in view of the decision of the honourable apex court in Devi Dass Gopal Krishnan v. State of Punjab reported in [1967] 20 STC 430? (ii) Whether, in the facts and circumstances of the case, the Tribunal is right in holding that there is no manufacturing process involved in converting plastic tubes into plastic bags and covers? (iii) Whether the process of converting the plastic tubes into plastic bags by the cutting and sealing machines and power amounts to manufacture?" The assessee is a dealer registered under the provisions of the Kerala General Sales Tax Act, 1963 ("the Act", ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... astic tubings. The sheets are cut into small sizes, stitched on either side by machines and effects sale of plastic covers/bags. In the returns filed, the sales turnover of plastic covers is claimed as non-taxable being second sales. The assessing authority's view is, that, conversion of plastic sheets into plastic covers/bags amounts to manufacture and therefore sales turnover would attract charging provisions. In our view, in a manufacture, the resultant product must be a different commercial commodity and merely because certain articles are known by different names it does not mean that they are different commercial commodities, if in fact, in order to constitute manufacturing, the original material must undergo a transformation so t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equired to be cut in the requisite shape and holes have to be punched in these before they could be fitted as insulators. The apex court while answering whether, the aforesaid activity would amount to manufacture, has stated, that, mere cutting or punching of holes does not amount to manufacture. The industrial laminates and glass epoxy laminates have insulating properties and are used as electrical insulators and they cannot be taken out of the category of electrical insulators merely because they have to be cut to the requisite shape or a few holes may be required to be punched in them in order that they fit into electrical instrument/appliance. The Supreme Court in Sterling Foods v. State of Karnataka [1986] 63 STC 239, has observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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