1962 (12) TMI 35 - HC - VAT and Sales Tax

Summary

Issues:
1. Inclusion of sales made in London in the gross turnover for tax liability determination in U.P.
2. Assessment of sales made by the assessee under section 2(h), Explanation II(ii).

Analysis:
The judgment by the Allahabad High Court pertains to cases referred under the U.P. Sales Tax Act regarding the inclusion of sales made in London in the assessee's gross turnover for tax liability determination in U.P. The first issue addressed was whether sales made at London should be considered in the U.P. sales turnover. The Court, based on a previous judgment, affirmed that sales made in London by the assessee should be included in the U.P. sales turnover for tax assessment purposes. The second issue revolved around the applicability of section 2(h), Explanation II(ii) concerning whether the assessee's activities amounted to manufacturing. The Court analyzed the process undertaken by the assessee with pig bristles, concluding that the activities did not transform the bristles into a commercially different article. The Court highlighted that the bristles remained unchanged in essence, similar to a previous case involving arecanuts, where processing did not alter the nature of the product. Therefore, the Court held that the assessee was not a manufacturer under the specified section. The judgment distinguished the present case from a previous decision where a process resulted in a commercially different article. Ultimately, the Court ruled that the sales of bristles were not to be included in the assessee's turnovers for the assessment years, answering the second question in the negative. The Court directed the dissemination of the judgment to the relevant authorities and awarded costs to the Commissioner, Sales Tax, assessing them at Rs. 100 to be borne by the assessee.

This detailed analysis of the judgment provides a comprehensive overview of the issues addressed by the Allahabad High Court, the legal interpretations made, and the final decisions rendered in the context of the U.P. Sales Tax Act.