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TMI Blog2007 (9) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... ected - W.A. No. 249 of 2004 - - - Dated:- 24-9-2007 - DATTU H.L. C.J. AND SANKARAN K.T. , JJ. The judgment of the court was delivered by H.L. DATTU C.J. The appellant before us is the manufacturer and seller of crushed bones. He has established a small-scale industrial unit. Immediately after the establishment of the unit, he had approached the District Level Committee to issue a certificate providing for exemption from payment of sales tax as provided in Notification S.R.O. No. 1729 of 1993. The District Level Committee has rejected the claim of the petitioner by its order dated January 6, 2000 (exhibit P3). The order so passed by the District Level Committee is as under: PROCEEDINGS OF THE GENERAL MANAGER, DIST. INDUSTRIES C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Level Committee for sales tax exemption. The said committee by its order dated September 17, 2002 has rejected the appeal. While doing so, they have stated as under: PROCEEDINGS OF THE DIRECTOR OF INDUSTRIES AND COMMERCE, VIKAS BHAVAN, THIRUVANANTHAPURAM (Present: P.H. KURIEN, IAS) No. FO. 3/7008/00Kdis Dated: 17.9.02. Sub: Industries Sales Tax Exemption Appeal M/s. Swapna Bone Metal Company Pvt. Ltd., Ernakulam rejected Orders issued. Read: 1. Appeal of the unit dated March 13, 2000. 2. Decision of the SIC on Sales Tax Exemption held on June 24, 2002. M/s. Swapna Bone Meal Company (Pvt) Ltd., Arackanady, Perumbavoor, a registered SSI unit, which is engaged in manufacturing of bone meal and mutton tallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itled to the benefit of the notification issued by the State Government under S.R.O. No. 1729 of 1993 which has come into force on January 1, 1994. Apart from this, the learned counsel would submit that the orders passed by the respondents are cryptic orders; and it contains no reasons and therefore, the said orders are no orders in the eye of law. Therefore, he submits that the orders passed by the respondents require to be set aside by this court and this court should declare that the petitioner is eligible for exemption under Notification S.R.O. No. 1729 of 1993. Per contra, Sri Mohammed Rafiq, learned Senior Government Pleader appearing for the Revenue, would submit that by crushing of raw bones into crushed bones, there is no manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chased should have been devoured or exhausted in the process of manufacture with the result, its identity must have been completely lost. So long as its identity remained, the goods purchased and used in the manufacture of some other goods cannot be said to have been consumed in the process of manufacture of other goods. It is against this background, we have to consider the question raised in this case. We have already referred to what the dealers purchased in these cases and the processes they adopt for bringing into existence the end-product. From what we have stated it is clear that the raw bones purchased by the dealers in these cases cannot be said to have been consumed in the process of bringing into existence the crushed bone, bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, polishing, cleaning, grading, drying, blending or mixing different varieties of the same goods, sawing, garbling, processing one form of goods into another form of the same goods by mixing with chemicals or gas, fumigation or any other process applied for preserving the goods in good condition or for easy transportation. The process of producing desiccated coconut out of coconut, chemical treatment of rubber wood and production of dressed or tanned hides out of raw hides shall be deemed to be 'manufacture' for the purpose of this notification. The following processes shall not be deemed to be 'manufacture' for the purpose of this notification: (a) Crushing copra and producing coconut oil and coconut oil cake. (b) C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the expression of manufacture , raw materials should undergo a change and because of such a change a commercially different commodity should emerge. In the instant case, as we have already stated, the appellant purchases raw bones and thereafter crushes them into crushed bones by using machines. This activity of the appellant would not fall within the meaning of the expression manufacture , since no commercially different commodity would emerge because of such conversion. However, Dr. Mohammed Kutty, the learned Senior Counsel would bring to our notice a decision of a Full Bench of this court in the case of R. Suresh Kumar v. State of Kerala [2005] 140 STC 228; [2005] 13 KTR 70. That was a case pertaining to conversion of tamar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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