TMI Blog2018 (11) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... In any case, as a process of treating or finishing the goods, lacquering by very nature, as discussed by the Tribunal would be covered by the term finishing and treating or otherwise processing the goods - thus, the process is amounting to manufacture - decided against assessee and in favor of Revenue. Whether, the finding recorded by the Tribunal that the assessee had engaged in lacquering activity, on its own account, is based on any material and evidence? - Held that:- Though the assessing authority had made an observation to the effect that the one of the partner of the assessee's firm had admitted to have engaged in the activity of lacquering of goods, neither such statement has been extracted nor its substance considered by the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng activity, on its own account, is based on any material and evidence? 3. In brief, the assessee is a trader in hardware and locks. The assessee had been purchasing hardware and locks from unregistered dealers. According to the assessee, during the assessment year in question, the assessee purchased the hardware and locks from unregistered dealers after approving their quality at its own business premises. Upon such approval being made, the goods were first lacquered and polished by the sellers admittedly at its place of business and thereafter the same were purchased by the assessee. 4. In the assessment proceedings, the assessing officer accepted volume of the turnover. However, he made additions on account of manufacturing activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1982-83 and 1983-84. It was held galvanization of iron pipes and tubes did not bring into the existence any new commodity - different from steel tubes. It has thus been submitted that lacquering is a process similar to galvanization that had been considered by the Supreme Court. Therefore, it can never be said that new or different commodity had come into existence upon successful process of lacquering. 7. Learned Standing Counsel on the other hand submits that the decision of the Supreme Court referred to above is no longer relevant inasmuch as at present, dispute has arisen under the U.P. Trade Tax Act, 1948 wherein upon amendment of the term manufacture of various process stands included. Relying on the definition of manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture 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) of the UP Trade Tax Act is very wide, which includes processing, treating or adapting any goods. Hence, in our opinion, the expression manufacture covers within its sweep not only such activities which bring into existence a new commercial commodity different from the articles on which that activity was carried on, but also such activities which do not necessarily result in bringing into existence an article different from the articles on which such activity was carried on. For example, the activity of ornamenting of goods does not result in manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Trade Tax, U.P. (supra) . Applying that test, even according to the assessee's own case, it has been stated, by under going the process of lacquering, the goods namely hardware and locks became differently marketable and in fact, it was assessee's own case that different quality of lacquering imparted different price to the same goods. In any case, as a process of treating or finishing the goods, lacquering by very nature, as discussed by the Tribunal would be covered by the term finishing and treating or otherwise processing the goods. 11. In view of the above, the first question pressed by the assessee is answered in the affirmative that is against the assessee and in favour of the revenue. 12. As to the second quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perverse. 14. Learned Standing Counsel on the other hand submits that a partner of the assessee's firm had himself admitted during the course of assessment that the assessee was engaged in the activity of lacquering and therefore the Tribunal had not erred in rejecting the defence set up by the assessee. 15. Having considered the arguments so advanced by learned counsel for the parties, I find that though the assessing authority had made an observation to the effect that the one of the partner of the assessee's firm had admitted to have engaged in the activity of lacquering of goods, neither such statement has been extracted nor its substance considered by the Tribunal. On the other hand, before the Tribunal, the assessee appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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