9911796707
TMI Blog1993 (11) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... le at first point. As per notification dated March 23, 1963, a manufacturer can pass on the incidence of tax to a second registered dealer on furnishing of form S.T. 17. The assessees claimed themselves to be a manufacturer and on that basis the sales were claimed not liable to tax, in accordance with declaration form S.T. 17 submitted in all these years. In the Revision No. 15 of 1993 of Singhal Sons for the year 1979-80 and in revision No. 17 of 1993 of Singhal Sons (Mines) for the assessment year 1981-82, the assessing authority examined the claim of the assessee in the assessment proceedings and found that the assessee is a manufacturer. The deduction claimed was accordingly allowed. The assessing authority found that the lumps wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded. The stones and the impurities are removed and thereafter the process of screening and grading is adopted. From the mines, when the silicasand is taken out, it is in pink or yellow colour. The different sizes of silicasand is taken out after passing through the sieve and such graded silica-sand is used for different industries like tiles, ceramic, glass, sodium silicate, etc. The lumps excavated from the mines are not sold and it is only after the above process, that silica-sand of different sizes, grade and mesh is prepared and sold. It was contended that the assessees are not only the mines owner, but, manufacturer as well and are registered with the Industries Department as a small-scale industry and in accordance with S.I.I., the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted from the mines it is having red or yellow layers which are removed and thereafter it is grinded. The grading in different sizes, washing, passing through the sieves were found, the process under which the excavated mineral goes. It was on the basis of the various processes, the Rajasthan Sales Tax Tribunal, came to the conclusion that the assessees is a manufacturer and therefore can shift point of tax in accordance with the notification dated March 23, 1963, on furnishing form S.T. 17. The submission of Mr. Bapna, on behalf of the Revenue is that this Court in Commercial Taxes Officer v. Bikaner Gypsum Ltd. [1986] 61 STC 264, has held that the process of excavation is not a process of manufacture. I have considered over the matter. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attention both under this Act as well as the Central Excises Act and the various sales tax laws. The word 'production' has a wider connotation than the word 'manufacture'. While every manufacture can be characterised as production, every production need not amount to manufacture. The meaning of the expression 'manufacture' was considered by this Court in Deputy Commissioner of Sales Tax v. Pio Food Packers [1980] 46 STC 63 (SC) among other decisions. In the said decision, the test evolved for determining whether manufacture can be said to have taken place is, whether the commodity which is subjected to the process of manufacture can no longer be regarded as the original commodity but is recognised in the trade as a new and distinct commodi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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