2007 (4) TMI 636 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to decision of District Level Committee regarding sales tax exemption eligibility for filtration process of raw mustard oil to make mustard oil u/s 9(4) of Assam General Sales Tax Act, 1993.

Summary:
The petitioner challenged the decision of the District Level Committee denying sales tax exemption for the process of filtration of raw mustard oil to produce mustard oil. The petitioner argued that the wide definition of "manufacture" u/s 2(22) of the Act should apply, allowing exemption for the entire process. The petitioner cited relevant case laws supporting their interpretation. However, the respondents contended that the process did not result in a new product and thus, exemption was rightly denied. The Court analyzed the provisions of section 9(4) of the Act and the notification dated September 20, 1997, emphasizing that the scheme applied to production of goods using raw material. It was found that the process in the petitioner's factory did not create a new product, only purifying raw mustard oil into mustard oil. The authorities had earlier granted exemption for production from mustard seeds, not from raw mustard oil. Therefore, the filtration process was deemed ineligible for exemption under the scheme. Additionally, the Court noted the petitioner's delay in challenging the decision, citing reasons of the petitioner's mother's illness as insufficient justification. Consequently, the writ petition was dismissed.

In conclusion, the Court upheld the decision denying sales tax exemption for the filtration process of raw mustard oil to produce mustard oil, based on the provisions of section 9(4) of the Act and the scheme outlined in the notification dated September 20, 1997.