1987 (4) TMI 465 - HC - VAT and Sales Tax

Summary

Issues involved:
The issue involves the grant of eligibility certificate for exemption from sales tax based on the classification of the petitioner's business activity as manufacturing under a specific notification.

Summary:
The petitioner, engaged in blending tea leaves, applied for an eligibility certificate for sales tax exemption as per a notification issued u/s 12 of the Madhya Pradesh General Sales Tax Act, 1958. The petitioner fulfilled all conditions but was denied the certificate on the basis that blending tea did not constitute manufacturing. The High Court considered whether blending tea resulted in a new commodity, referencing a Supreme Court case. The Court noted that a subsequent notification excluded "blending of tea" from exemption, indicating it was previously eligible. Consequently, the Court held the denial of the eligibility certificate was unjustified and directed its issuance to the petitioner.

This judgment clarifies the interpretation of manufacturing under sales tax exemption notifications and emphasizes the qualitative change in commodities to determine manufacturing activity for eligibility.