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TMI Blog2016 (8) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... 17.7.2008 passed in Misc. Application Nos.7 to 10 of 2008 and order dated 7.8.2008 passed in Rectification Application Nos.2, 3 and 4 of 2008. 2. At the time of admission of these Appeals, following questions of law were framed:- "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law the use of the furnace oil as processing materials or consumable stores? (2) Whether, the Tribunal was right in law by not following two direct Supreme Court decisions in case of Coastal Chemicals Ltd. reported at 117 STC 12 SC and in case of Thomas Stephen and Company Ltd. reported at 69 STC 320 (SC) and not following direct order of the Tribunal in the case in case of Pandesara Industries Pvt. Ltd. (Second Appeal No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es place in such a plant and, therefore, it can validly purchase goods used as fuel for the generation of heat and energy for using in the manufacturing process. If not, it would lead to an anomaly that if raw material used to generate power in a power plant, it will be exempted but if the raw material is used to generate power in a composite plant manufacturing another end-products, it will not be exempted. In the Gujarat Value Added Tax Act, 2003 by which the Gujarat Sales Tax Act was repealed with effect from April 1, 2006, the term "raw material" is defined in section 2 (19) to mean goods used as ingredients in the manufacture of goods and includes processing materials, consumable stores and materials of packing of goods so manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be said that the electricity generated is used in or in relation to the manufacture of final product. Therefore, to the extent of use of electricity for the purposes other than manufacturing activities or not connected therewith they would not be considered as raw materials, processing materials or consumable stores." 7. In view of above observations, in our view, the Tribunal has committed an error while passing the impugned order and it is held that the Tribunal has committed an error in holding that the use of the furnace oil is not processing materials or consumable stores. Accordingly, this appeal is allowed. The question posed for our consideration is answered in favour of the assessee and against the department. However, we mak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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