9911796707
TMI Blog2008 (12) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... ered against the Revenue and in favour of the assessee - S.T. Rev. No. 262 of 2005 - - - Dated:- 4-12-2008 - DATTU H.L. C.J. AND BASHEER A.K. , JJ. ORDER:- The order of the court was made by H.L. DATTU C.J. The Revenue calls in question the legality or otherwise of the order passed by the Sales Tax Appellate Tribunal, Additional Bench, Ernakulam in T.A. No. 1022 of 2003 dated July 29, 2004. By the impugned order, the Tribunal has rejected the appeal filed by the Sate Government and has confirmed the order passed by the first appellate authority in S.T.A. No. 363 of 2003 dated June 25, 2003. The Revenue has raised the following questions of law for our consideration and decision. They are: (i) Whether the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the first appellate authority and the Appellate Tribunal and that is how the Revenue is before us in this tax revision case. The one and the only question that arises for our consideration is whether conversion of plastic sheets/tubings into plastic covers would amount to manufacture? The expression manufacture is not defined under the Act. Therefore, this expression has to be understood the way it is understood in commercial parlance and the way it is explained by the apex court. Now, let us see the activity of the assessee. He is a dealer in plastic bags and covers. He effects purchase of plastic sheets/plastic tubings. The sheets are cut into small sizes, stitched on either side by machines and effects sale of plastic covers/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng into existence any different commercial commodity than the original one. There is no essential difference between plastic tubings/sheets and packing covers. Therefore, it cannot be said that the process involved in conversion of plastic sheets into plastic bags would involve any manufacturing activity. Reference can be made to the decision of the apex court in the case of Collector of Central Excise v. Bakelite Hylam Ltd. [1997] 10 SCC 350. In the said case, the contention of the Department was that industrial laminates and glass epoxy laminates cannot be considered as electrical insulators because these sheets are required to be cut in the requisite shape and holes have to be punched in these before they could be fitted as insulators. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmodity, but instead is recognised as a new and distinct commodity, that it can be said that a new commodity, distinct from the original, has come into being. With the available facts before us, the only conclusion that can be reached is, that, while processing plastic sheets/tubings into plastic covers/ bags, no new commercially different commodity would emerge and therefore, there is no manufacture as such and since purchase of plastic sheets has already suffered tax, the sales turnover of plastic covers/bags is a second sale and therefore, not liable for payment of tax under the Act. In view of the above discussion, the questions of law framed by the Revenue requires to be answered against the Revenue and in favour of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
