9911796707
TMI Blog2004 (2) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... systems, filling guns, etc. It is alleged that without the use of such machinery/equipment, it will not be possible to transfer gas which is received by it in bulk to small cylinders. It is submitted that machinery that are used by the appellant for this purpose fall under entry 1(iii)(a) of Part M of the Second Schedule to the Act. 3.. The Government of Karnataka, by notification dated March 31, 2000 issued under section 8-A of the Act reduced the tax payable by a dealer under section 5 of the Act in respect of sale of machinery and tools specified in Sl. No. 1(iii)(a) of Part M of the Second Schedule to an industrial unit located in the State for use by such unit in the manufacture or processing of goods for sale, to four per cent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of gas in the Gas Cylinders Rules, 1981 and the definition of manufacture in the Indian Explosives Act, 1884 were not considered by the Authority. 5.1 The Explosives Act, 1884 was enacted to regulate the manufacture, possession, use, sale, transport, import and export of explosives. Section 17 enables the Central Government to declare any substance which appears to it to be specially dangerous to life and property, by reason either of its explosive properties or of any process in the manufacture thereof being liable to explosion, shall be deemed to be an explosive within the meaning of the said Act. The said section further provides that the provisions of the said Act, shall extend to that substance, as if it were included in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing and processing though not defined in the Sales Tax Act has a clear and definite connotation in sales tax laws. 6.1 The Supreme Court in Deputy Commissioner of Sales Tax v. Pio Food Packers [1980] 46 STC 63, defined manufacture thus: Commonly, manufacture is the end result of one or more processes through which the original commodity is made to pass. The nature and extent of processing may vary from one case to another, and indeed there may be several stages of processing and perhaps a different kind of processing at each stage. With each process suffered, the original commodity experiences a change. But it is only when the change, or a series of changes, take the commodity to the point where commercially it can no longe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount to processing, mere repacking or dividing into smaller quantities for purposes of sale or storage is not processing. In the case of solid substances, cutting, trimming, peeling and polishing may amount to processing as they bring about a definite change in the commodity, though not altering the nature or identity of commodity. Such operations are however not possible in the case of liquids and gases. Be that as it may, what is clear is that no processing is involved when a commodity (any solid or liquid or gas) is merely divided into smaller lots or quantities. If a dealer purchases a bag containing 100 kgs. of rice and divides it into 20 bags of rice, each of 5 kgs., it is not processing of rice. If a dealer purchases a tin of 10 kgs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the definition of manufacture of gas in Gas Cylinders Rules, even transfer of compressed gas from one cylinder to another, would amount to manufacture of gas; and that therefore re-filling gas cylinders by mechanical process should be considered as a manufacturing activity, even though it does not involve any change in the commodity (gas). It is now well-settled that a definition of a word given for a specific purpose in an enactment cannot be relied upon to interpret the said word used in a general sense in another enactment. For example, the special definition of the word transfer under section 2(47) of the Income-tax Act, 1961, cannot obviously be used to interpret the word transfer in the Transfer of Property Act, 1882. In sal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
