TMI Blog2015 (1) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... ke the commodity to the point where, commercially, it can no longer be regarded as the original commodity but is, instead, recognised as a distinct and new article that has emerged as a result of the processes - The principles are clear - But difficulties arise in their application in individual cases - There might be borderline cases where either conclusion with equal justification be reached - Insistence on any sharp or intrinsic distinction between 'processing' and 'manufacture'- though the raw water is subjected to the process of purification, it continues to be water - Its character and use remains the same though quality has been improved - It cannot be held that a new and distinct commercial commodity has emerged on account of the process undertaken - every process which may bring about some change cannot be treated to be manufacturing - The identity of the original commodity must be lost and instead a new identity must merge – thus, there is no ground to interfere in the order - Decided against petitioner. - W.P. (C) No. 12 of 2009 - - - Dated:- 9-1-2013 - GOEL A.K. C.J. AND KOTISWAR SINGH N., J. For the Appellant : R.P. Agarwala, Senior Advocate, U. Bhuyan, R. Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erala High Court in Teejan Beverages Ltd. [2003] 131 STC 538 (Ker). He also placed reliance on judgment of this court in Deepak Kumar Poddar v. State of Assam [2010] 31 VST 8 (Gauhati); [2010] 6 GLR 835, paras 16 and 17. He further submits that industrial policies were meant to encourage industrialization involving manufacture of goods. The word manufacture has been defined under section 2(22) of the Assam General Sales Tax Act, 1993 and section 2(30) of the Assam Value Added Tax Act, 2003. Processing of raw water into drinking water was not covered within the concept of manufacture as defined under the Assam law. Cancellation of entitlement certificates was not proposed only on the basis of change of opinion on a debatable issue but on account of suppression of material facts and on the basis of binding law on the point. We have given due consideration to the submissions advanced. The question for consideration is whether processing of raw water into drinking water amounts to manufacture under section 2(30) of the Assam Value Added Tax Act, 2003 and under section 2(22) of the Assam General Sales Tax Act, 1993. In our view, the answer has to be in the negative. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltra Filtration NF : Neno Filtration Jarfiling unit I-II Jar inspection Visual inspection-I Jar packaging unit ULO MRP printing unit Ready for despatch Labelling section Product water check point Visual inspection-II Label shrinking unit Packing section Product water check point The definition of manufacture under section 2(22) of the Assam General Sales Tax Act, 1993 is as under: 2.(22) 'manufacture' with all its grammatical variations and cognate expressions, means producing, making, extracting, altering, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubjected to the process of purification, it continues to be water. Its character and use remains the same though quality has been improved. It cannot, thus, be held that a new and distinct commercial commodity has emerged on account of the process undertaken. The matter was considered by the Kerala High Court in the light of judgment of the honourable Supreme Court in Tungabhadra Industries Ltd. v. Commercial Tax Officer [1960] 11 STC 827 (SC), as follows (page 565 in 131 STC): . . . ground water which is taken and used by the appellants as raw material for their finished product, viz., mineral water/packaged drinking water, can be used for all purposes for which the so called mineral water is used. Similarly the so called mineral water can be used for all the purposes for which the ground water can be used. What is done by the appellants is to employ various processes described by them to bring the commodity more acceptable to a section of people for drinking purposes. According to us, notwithstanding the various processes employed by the appellants in converting the ground water it continues its identity as water, its character and use also remain the same though the quali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] Supp. 1 SCC 222, as follows (page 503 in 84 STC): 10. . . . It is true that under the section it is not necessary that there should be 'manufacturer' in the sense that a new commodity has been brought into existence as would have been required if that word is interpreted in its literal sense. But, at the same time, the section should be so interpreted to mean only such of the various processes referred to in the definition and applied to the goods as are of such a character as to have an impact on the nature of the goods. . . The matter was also considered by this court in Deepak Kumar Poddar [2010] 31 VST 8 (Gauhati); [2010] 6 GLR 835, wherein it was held, in the context of conversion of raw mustard oil into filtered mustard oil that no manufacturing was involved and it was concluded (pages 17 and 18 in 31 VST): 16. From the above discussions it would be clear that the true purport and meaning of the wide definition of 'manufacture' as contained in the Assam Act is that the expression 'manufacture' with all its connotations under the definition would require the final product to be noticeably different from the basic input though both, i.e., t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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