2012 (12) TMI 1107 - HC - VAT and Sales Tax

Summary

Issues involved:
The judgment deals with the issue of whether the process of cutting and polishing rough granite into granite tiles amounts to manufacturing under section 5 of the Sales Tax Act.

Summary:

Issue 1: Manufacturing Process and Sales Tax Liability
The main issue in the appeals was whether the process of purchasing rough granite, cutting and polishing it into granite tiles constitutes a manufacturing process attracting Sales Tax under section 5 of the Sales Tax Act. The appellant argued that based on a Supreme Court decision and a previous case, cutting and polishing stones into slabs did not amount to manufacturing as no new distinct commercial product was created. The Court agreed with this argument, stating that cutting granite blocks into tiles did not amount to a manufacturing process under the Act. The Court directed the Assessing Officer to consider if the transaction attracts resale tax under section 6-B. The substantial question of law was answered in favor of the assessee, and the appeals were allowed.

Issue 2: Typographical Errors in Orders
In a separate order, a correction was made to rectify typographical errors in the cause title and preamble of an appeal. The name and address of the appellant were corrected, and the date of the order was amended to reflect the accurate information. The corrections were made to ensure the accuracy of the records, and a fresh copy of the order was directed to be issued to the parties.

This summary provides a detailed overview of the judgment, addressing the issues involved and the key points discussed in the Court's decision.