9911796707
TMI Blog2000 (5) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... ing out water from a mine comes within the meaning of manufacture, production, processing or repair of goods so as to claim exemption from duty under Notifications issued under sub-section 3 of Section 3 of the Rajasthan Electricity (Duty) -Act. 1962 (for short the Act )? 2. This appeal is by the Rajasthan State Electricity Board. Jaipur, theDefendant in the.suit. . 3. In short and substance, the facts which are considered relevant and necessary for disposal of this appeal are the following. 4. The Plaintiff-Respondent No . I --is a registered public Iimited company. It is engaged in excavating stones from the collieries and thereafter converting them into slabs by cutting and polishing. The Rajasthan State Government levied electricity duty under the provisions of the Act. A Notification dated 26.3.1962 was issued by the State under Section 3(3) of the Act granting exemption from tax on the energy consumed by a consumer in any industry in the manufacture, production, processing or repair of goods and by or in respect of any mine as defined in the Indian Mines. Act, 1923. 5. Subsequently a notification was issued on 2.3.1963 superseding the aforesaid Notification d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cations dated 2.3.1963 and 1.11.1965 have clearly removed exemption in relation to any mine.. In support of his submissions, he relied on the decision of this Court in Collector of Central Excise, Jaipur vs. Rajasthott State Chemical Works. Deedwana, Rajasthan (1991) 4 SCC 473. 8. Per contra., the learned counsel for the plaintiff made submissions supporting the impugned judgment and decree. He argued that excavation of stones thereafter cutting and polishing them into slabs amounted to manufacture. 9. We have considered the submissions made by the learned counsel for the parties. The 3 Notifications to the extent they are relevant are extracted hereunder:- Notification dated 26.3.1962 In pursuance of sub-clause 3 of clause 3 of the. Rajasthan Electricity (Duty) Bill, 1962, read with the declaration inserted therein under section 3 of the Rajasthan Provisional Collection of Taxes Act. 1958 (Rajasthan Act 23 of 1958), the State Government being of the opinion that it inexpedient in public interest to-do so, hereby exempts from tax the-energy-consumed - (1) by a consumer in any industry in the manufacture production, processing or repair of goods , and (2) by or in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e two subsequent Notifications of 2.3.1963 and 1.11.1965 have omitted provision of exemption in respect of mines. It is not the case of the Plaintiff that electrical energy was consumed in any industry in the manufacture, production, .processing or repair of goods. The specific case of the Plaintiff is that the electrical energy was consumed for pumping out water from mines to make mines ready for mining activity namely, excavating stones and thereafter catting and.. polishing them into slabs. The 1963 Notification superseded the 1962. Notification and 1965 Notification superseded both 1962 and 1963 - Notifications. As already noticed above. 1963 and 1965 Notifications have not made any provision for exemption of duty on the electricity consumed by or in respect of mines, it is the ca.se of the Plaintiff that the electricity- was used for the purpose of pumping out water from the mines to facilitate mining activity , namely excavating of stones. It must be also kept in mind that a mining activity is distinguished from a manufacturing activity, it appears this removal of exemption in the said Notifications in respect of mines was done consciously so as to bring the mining activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture generally and in the ordinal parlance in the absence of its definition in tile Act should be understood to mean bringing to existence a new and different article having distinctive name. character or use after undergoing some transformation. When no new product as such comes into existence, there is no process of manufacture. The cutting and polishing stones into slabs is not a process of manufacture for obvious and simple reason that no new and distinct commercial product came into existence as the end product still remained stone and thus its original identity continued. 14. This Court in Union of India Ors. Vs. Delhi Cloth and General Mills Co. Ltd. Ors. (1977 E.L.T. (J.199) as to the meaning of manufacture in para 14 has stated thus:- The word manufacture used as a very is generally understood to mean as bringing into existence a new substance and does not mean merely to produce sonic change in a substance , however minor in consequence the change may be. Tills distinction is well brought about in a passage thus quoted in-Permanent Edition of Words and Phrases. Vol. 26. from an American Judgment. The passage runs thus Manufacture impli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture. 16. In conclusion, it is said that if any operation in the course of manufacture is so integrally connected with the further operations which result in the emergence of manufactured goods and such operation is carried on with the aid of powder, the .process-in or in relation to the manufacture must be deemed to be one carried with the aid of power. Pumping out of water, excavation of stones and cutting and polishing them into slabs cannot be said to-be, integrally connected in the manufacturing of goods. 17. Keeping in view what is stated above, we did not difficult to accept the view of the learned Judge that the energy consumed for pumping out of water from the mines would be held to be a part of the manufacturing process of the whole industry and the- business carried out by the Plaintiff. It is also not possible to accept that excavation of stones and thereafter cottage and polishing them into slabs resulted in any manufacture of goods. On the basis of evidence,. the trial court found that there are two separate electric meters; one for pumping cutwater whenever requited, the other for the workshop to which the stones excavated are carried. The trial court als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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