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TMI Blog1995 (7) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided only with a view to accelerate the pace of industrialisation in the State. The High Court seems to have proceeded on the assumption that the I.P.R. by itself is enough to provide the exemption from the sales tax. But where the provisions of the Sales Tax Act are also amended providing for exemption, then the court has to see whether they are the same as the I.P.R. or are they different-and if different, what is the effect of such difference. It is, therefore, necessary to ascertain the relevant provisions in the Sales Tax Act, Rules and notifications, if any, issued thereunder before expressing a final opinion in the matter. The dealers and assessees normally contend that the process undertaken by them does not involve manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the State and also those who expanded their existing capacities. Inter alia, it provided for certain concessions in the matter of sales tax. In the case of village, cottage and small-scale industries, exemption from tax was provided on the purchase of raw material as well as the sale of finished product whereas in the case of new medium and large scale industrial units, the facility of deferment of payment of sales tax for a particular period was provided. The State was divided into three zones having regard to their level of industrialisation. Zone A which was supposed to be the least industrialised area provided more incentives than Zones B and C. District Sambhalpur, wherein the respondent-industry is located, falls in Zone C. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industrial areas in the fields of electronics and computers, electrical and domestic appliances, plastic and polymers, leather, textiles, ceramics, chemicals, drugs and pharmaceutical industries". Even the provisions of the I.P.R. relating to sales tax concessions bear out the said object. The relevant provisions read thus: "(d) Concessions relating to sales tax.- (i) Exemption of sales tax on raw materials-All new village, cottage and small industries will be exempted from sales tax on purchase of spare parts of machinery, raw materials and packing materials for a period of 5 years from the date of their commercial production. All new medium and large industries will be eligible for similar facility for 3 years in Zones B and C and for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or production of goods. Indeed, clause (2)(a) in the above extract speaks of "concerned manufacturing units". Manufacture, in its ordinary connotation, signifies emergence of new and different goods as understood in relevant commercial circles. Furthermore, the use of the expression "purchase of raw material" itself shows that what is ultimately produced is different goods than the raw material used. Similarly, the repeated use of the expression "finished products" and the grant of exemption in the case of small-scale industries both in respect of raw materials as well as finished products indicates that these concessions at substantial cost to public exchequer were being provided with a view to encourage units engaged in the manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n noted in the judgment. We do not know whether this aspect was gone into at all. Even the order of the Sales Tax Officer does not clearly set out the process. Before the court can express itself on the question whether a particular process amounts to manufacture/production or not, it must know what is the precise process that is gone through. It is necessary to have this material. As a matter of fact, there are a number of decisions both under the Central Excise Act as well as under the several State sales tax enactments where similar questions have arisen. The principles emerging therefrom may have to be kept in mind. The dealers and assessees normally contend that the process undertaken by them does not involve manufacture, that no new g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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