TMI Blog2017 (5) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... d to 'Mehndi leaves' and 'Mehndi powder' alone - The Tribunal has rightly come to the conclusion that the paste, which is created in the process is a cosmetic preparation as various oil and chemicals are added to Mehndi powder so as to exclude it from the purview of exemption notification. 'Mehndi Cone' does not fall within the exemption notification issued under Schedule-I - appeal dismissed - decided against Revenue. - Sales/Trade Tax Revision No. - 867 of 2012 - - - Dated:- 4-5-2017 - Hon'ble Ashwani Kumar Mishra, J. For the Applicant : N.C. Gupta For the Opposite Party : C.S.C. ORDER 1. An application under Section 59 of the U.P. Value Added Tax Act, 2008 was moved by the assessee seeking opinion of the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , learned counsel relied upon a Division Bench decision of this Court in the case of Commissioner of Sales Tax, Uttar Pradesh, Lucknow Vs. Tata Iron and Steel Company Ltd. ,1976 (38) STC, 10 as well as two orders passed by the authority for advance ruling, reported in 2015 (326) ELT, 388. Reliance is also placed upon a decision of Apex Court in M/s Mauri Yeast India Pvt. Ltd. Vs. State of U.P. and another, reported in 2008 NTN (Vol.37), 57. 6. Learned Standing Counsel, on the other hand submits that the product Mehndi Cone is a different product, which is separate and distinct from Mehndi powder covered by Entry 23. It is Mehndi either as leave or as powder alone which is covered by the entry and once a new product is created by adding o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicability of tax, it ought not to have confined the exemption to 'Mehndi leaves' and 'Mehndi powder' alone and the term Mehndi alone would have sufficed. 10. The argument of Sri N.C. Gupta, learned counsel for revisionist that Entry 23 needs to be liberally construed so as to include Mehndi Cone, is not liable to be accepted in view of the fact that law is settled that entry exempting the product from payment of tax would have to be strictly construed. 11. Going by the exemption notification, I am of the opinion that exemption is not allowed to Mehndi or all its derivatives, but is restricted to 'Mehndi leaves' and 'Mehndi powder' alone. This Court in Commissioner Sales Tax (Supra) had an occasion to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the definition of 'manufacturing'. The product, in the manner it is made to sell in common parlance, cannot be said to be 'Mehndi powder' or 'Mehndi leaves' so as to exempt it from the applicability of tax. 13. In Sonebhadra Fuels (Supra), the Hon'ble Supreme Court had an occasion to deal with the definition of 'manufacture', as it occurred in U.P. Trade Tax Act. Para Nos. 22,23 and 24 of the judgment are reproduced below:- 22. We may mention that, as noted above, decisions construing the word 'manufacture' in other statutes are not necessarily applicable when interpreting Section 2(e-1) of the UP Trade Tax Act. As stated above, the definition of 'manufacture' in Section 2(e-1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e process mentioned above is clearly processing, treating or adapting the coal. Hence, in our opinion, it is a 'manufacture'. 14. In the facts of the present case the revisionist clearly admits that in the process of making 'Mehndi Cone', 'Mehndi Powder' was processed and different oils and chemicals together with mineral water was added to it. The process would clearly be covered within the definition of 'manufacturing'. A new product consequently comes into being. The product so created cannot be termed as 'Mehndi Leaves' or 'Mehndi Powder'. The Tribunal has rightly come to the conclusion that the paste, which is created in the process is a cosmetic preparation as various oil and chemica ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
