9911796707
TMI Blog1992 (3) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... ected with the manufacturing process at concessional rate on production of C form provided that such goods or material are declared and mentioned in the registration certificate issued to him. 2.. By these petitions the petitioners seek to challenge orders dated January 8, 1988, passed by the Sales Tax Officer, Indore (Circle 4), filed as annexure "D " in the petitions and the order dated November 3, 1988 passed in revision by respondent No. 3, filed as annexure "F" in both the petitions. 3.. By order dated November 30, 1990, a. show cause notice was ordered to be issued to the respondents calling upon them to show cause as to why these petitions be not admitted. Accordingly the learned Additional Advocate-General has filed his reply to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Advocate-General, contended that drilling of tube-wells and resultant outcome of water can by no means be said to manufacture or processing of water. 9.. Whether drilling of tube-wells amounts to manufacture of water? The petitioners are registered dealers under section 7 of the Central Sales Tax Act as per registration certificate, annexure "A". Their activity as declared by them and mentioned in annexure "A" is "contractor"-Tubewell drilling-ply-casing pipes. 10.. Shri Mehta has heavily banked upon the expression "for use by him in the manufacturing or processing of goods for sale" as occurring in sub-section (3)(b) of section 8 of the Central Sales Tax Act and contended that the casing pipes are used by the petitioners in their pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ug [see section 3(7) of the Drugs and Cosmetics Act, 1940]. In relation to insecticides the term "manufacture" has almost similar meaning [see section 3(j) of the Insecticides Act, 1968]. 13.. Manufacture implies a change but every change is not manufacture. There must be such transformation that a new and different article must emerge having a distinctive name, character and use (see South Bihar Sugar Mills Ltd. v. Union of India AIR 1968 SC 922). 14.. It has been held by the Karnataka High Court that preparation of coffee powder by roasting and grinding coffee-seeds is not manufacture (see Meghraj v. B. Seshagiri Rao AIR 1977 Kar 163). 15. Viewed in the light of and applying the principles as discussed, it cannot be said that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings. It was strenuously urged that the penalty proceedings should not be made retrospectively. 19.. This point was also raised before the revisional authority and it has been rightly pointed out that the petitioners can well raise this point in the penalty proceedings (see revisional order dated November 30, 1991 filed as annexure "F" to the petition). Since it is open to the petitioners to raise this point before the appropriate authority, we do not comment any more on this aspect of the matter. It is open to the petitioners to raise this point before the appropriate authority, if they so choose. 20.. For the foregoing reasons these petitions are liable to be dismissed. They are accordingly dismissed with costs. Counsel's fee Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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