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TMI Blog2005 (4) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of any period. In exercise of this power the State Government by its notification dated November 15, 1996 exempted the tax payable under the Act in respect of goods manufactured and sold by new industrial units in column No. (2) of Table A mentioned in the notification located in zones specified in column o. (3) and during the period and to the extent mentioned in column No. (4) thereof. The appellant before us is a limited company registered under the Companies Act, 1956 and is engaged in the activity of manufacture and sale of various goods including cement. It is registered as a dealer under the Act. It has put up a cement unit at Panambur, Mangalore in the State of Karnataka. It claimed exemption from payment of tax in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question that requires to be considered in this writ appeal is whether the appellant is manufacturing cement at its plant in Mangalore in the State of Karnataka so as to be entitled to claim exemption in terms of the notification dated November 15, 1996. The learned Senior Counsel appearing for the appellant strenuously urged that the manufacture of cement consists of the following stages (a) preparation of raw mix (b) production of clinker (c) clinker grinding in the cement mill (d) blending/homogenising of the ground cement in silos and packing into bags and that the fourth stage is being carried out at its new plant set up in Mangalore and that without homogenising cement and packing it into bags the same does not become marketable. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulk cement from our plant located in Kovaya in Gujarat as Stock Transfer, September 1998. Since our said unit is under assessment for the year 1998-99, we request you to kindly issue one F form book along with the respective register. As already observed the sole question that requires consideration is whether the process of homogenising cement as stated by the appellant in its plant at Mangalore amounts to manufacture of cement. We do not think so. In the requisition dated January 26, 2001 referred to above the appellant itself has informed the department that it has transferred bulk cement from its plant in Gujarat to Mangalore and a request has been made for the issue of F forms. These forms are meant for stock transfers from one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Silos. The cement is only subjected to blowing of air through the aeration system in order to keep cement in homogenous form which facilitates the loading of cement into bags. Even the project report submitted by the appellant which is annexure A to the writ petition states that the unit has been set up at Mangalore to receive and transfer the same in a totally enclosed system from the special purpose pneumatic cement vessels to the homogenising silos. It is thus clear that what is brought to the unit at Mangalore is cement which is further put through some process which does not bring about any change in the end-product but only makes it more saleable as compared to the product of its competitors. It is by now well-settled that all manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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