TMI Blog2023 (1) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... g, selling, supplying or distributing goods directly or indirectly, for cash or deferred payment or for commission, remuneration or other valuable consideration and includes the persons mentioned in Section 2(c)-i to viii. This Court in Bulbu Prasad Amarnath [ 1963 (10) TMI 19 - ALLAHABAD HIGH COURT ] way back in 1963 while considering that converting oilseeds into oil which was a manufacturing process has been done at the instance of manufacturer dealer by another owner of the mill. The Court held the owner of mill to be not a manufacturer because he did not own the oilseeds or oil produced by him, as he did not buy the oilseeds from the Assessee nor sold the oil to him, but only charged the labour of crushing the oilseeds into oil. The Court held that in order to be a manufacturer, it is not necessary that person himself must manufacturer. In the instant case, the Assessee had brought capital goods inside the State, which was used for manufacture of catalyst on basis of job work done by M/s ICI, who was manufacturing catalyst only for the Assessee and for no other party. M/s ICI was charging for the manufacture of catalyst from the Assessee and was not making the sale and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Transfer Agreement. The land of manufacturing unit could not be transferred to purchaser company. The dealer entered into a Toll Conversion Agreement (TCA) dated 02.12.2022 with M/s. AKZO Nobel for processing and manufacturing of finished goods, for the raw material and capital goods purchased and supplied by revisionist. AKZO Nobel was restricted from using plant and machinery and raw material for any other purpose other than manufacturing the products for revisionist. The liability of VAT was discharged by revisionist, and the excise invoices for the transactions issued by AKZO Nobel, clearly mentioned that it was on account of the revisionist-company. 6. The dispute relates to the assessment year 2004-05. The Assessee purchased machinery, plant, parts and accessories worth Rs.1,27,37,568/- from outside State of U.P. The goods were imported and were installed at the site of M/s ICI at Panki Site, 2-B, Kanpur for use by M/s ICI to manufacture catalyst exclusively for the Assessee. The machinery brought into the State were liable to entry tax. The State Government exercising power under Section 4-B of the U.P. Tax on Entry of Goods Act, 2000 issued a Notification dated 08.02.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture. 10. From the records, it is apparent that M/s ICI India did not make sale of goods actually manufactured by it, or they can sale as per Toll Conversion Agreement, and it was the Assessee who made first sale of goods manufactured by M/s ICI India on job work basis by using the machinery in question. Learned counsel then contended that notification provides for all class of small, medium and large dealers to cause entry of capital goods, plant, machinery and spare parts into local areas from any place outside the local area for use in their manufacturing means such dealers who would affect the first sale of goods manufactured in the State. 11. Reliance has been placed upon a decision of Division Bench of this Court in case of Bulbu Prasad Amarnath Vs. Commissioner of Sales Tax U.P., 1964 Sales Tax Cases 46, decision of Co-ordinate Bench of this Court in case of Commissioner of Trade Tax Vs. M/s Rathi Ispat Ltd., Ghaziabad 2003 NTN (23) 674 and decision in M/s Universal Engineering Corporation, Saharanpur Vs. Commissioner of Trade Tax U.P., Lucknow, 2009 NTN (40) 274. 12. Per contra, learned Standing Counsel, while defending the order of the Tribunal, sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (e-1) Manufacture means producing, making, mining, collecting, extracting, altering, ornamenting, finishing, or otherwise processing, treating or adapting any goods; but does not include such manufactures or manufacturing processes as may be prescribed; (ee) Manufacturer in relation to any goods means the dealer who makes the first sale of such goods in the State after their manufacture and includesx x x x x x x x x x x x x x x x x x x x x x 18. From the combined reading of provisions of Act 2000 and Act of 1948, it is clear that the words and expressions which are used in the Act of 2000 and have not been defined shall have the meaning assigned to them under the Act 1948. 19. The words Manufacture and Manufacturer have not been defined under the Entry Tax Act either of the year 2000 which was repealed and subsequently, enacted by the Act of 2007. The word Manufacturer has been defined under the Act of 1948 which means in relation to any goods, the dealer who makes the first sale of the goods in State after their manufacture. The Notification dated 18.02.2003 which provides benefit to a manufacturing dealer of entry on capital goods, plant, machinery and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturer defined under Section 2(ee) of the Act, 1948. It is the Assessee who had made the first sale and shall be deemed to be a manufacturer dealer and liable to claim benefit of the exemption Notification dated 18.02.2003. 26. Section 2(c) read with Section 2(ee) of the Act of 1948 clears the air as to the expression manufacturing dealer and it is the dealer who makes the first sale of goods manufactured is termed Manufacturer in the State of U.P. whether the manufacturing activity has been carried out at the premises of the dealer himself or got the work done from another premises on job work basis. The phrase used in the notification for use in their manufacturing has to be given meaning consistent with the meaning given to word Manufacturer under the Act of 1948. Giving restrictive interpretation to the phrase for use in their manufacturing to only include an actual manufactured and exclude deemed manufacturer would amount to causing harm to the plain and simple meaning of the term Manufacturer defined in Section 2(ee). 27. The reasoning given by the Tribunal and argument raised by the State counsel cannot be accepted, as it would amount to doing injustice and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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