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TMI Blog2001 (2) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... mption from payment of sales-tax under the Rajasthan Sales-tax Incentive Scheme for Industries, 1987. On 13th October, 1995, petitioner was communicated by the General Manager, District Level Screening Committee, Pali that his application has been rejected by the Committee, observing it to be an 'ineligible industry' as per item 19 of Annx. B attached with the said Incentive Scheme of 1987. 4. The petitioner made a representation to respondent No. 2 for reconsidering his application by pointing out that rejection of his application with reference to item No. 19 of Annx. B was erroneous, in pursuance of which petitioner was required to have discussion with the authority concerned vide communication dated 9th April, 1996 (Annx. 4) and ultimately, by communication dated 13th November, 1996, petitioner was informed that its application for grant of 'eligibility certificate' for exemption from payment of sales-tax has been rejected vide Annx. 5. 5. Aggrieved with that rejection, petitioner preferred an Original Application before the Rajasthan Taxation Tribunal, Jodhpur, then exercising jurisdiction in that regard. The Taxation Tribunal vide its impugned order date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , stored in large tankers or underground tanks, to be packed by mechanised process, by admixturing with air under pressure, in preparing to make it usable. Thus the manufacturing process of liquefied petroleum gas, so far as its marketability is concerned, is compete only after it is so filled in equipments like LPG cylinders, fitted with safety valve and sealed with, along with regulators to enable the consumer to use said LPG and is a commercially distinct LPG than LPG stored in bulk. The petitioner is, therefore, not engaged in mere activity of repacking of bulk LPG into small quantity of LPG, from large store house to smaller containers but packing is essential part of making it usable for buyers by transferring LPG from bulk storage to specified containers by use of mechanised process under air compressure mixing with proper proportion of air. 7. If that be so, it not only becomes a manufacturing process within definition of 'manufacture' under the Rajasthan Sales-tax Act, 1954, under which said Incentive Scheme has been promulgated it can not be considered to be a case of re-packing because it is a case of bringing the LPG gas for the first time in marketable form. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. It may further be noticed at this juncture that the question whether the petitioner is involved in manufacturing process or not?, was not at all gone into by the District Level Screening Committee, that is the original authority. The said Committee had, in fact, assumed it to be a manufacturing process but has held it to be ineligible, under Entry-19 of Annx. B to the Incentive Scheme of 1987. Said Incentive Scheme of 1987 envisage exempting an industrial unit from the payment of tax on sale of goods manufactured by it within the State in the manner and to the extent and for the period as covered by the said notification while it applies. It operates on an industrial unit which has commenced commercial production during operation of the Incentive Scheme, that is to say, after 5th March, 1987 but before closer of the Scheme, which initially was for 5 years and was extended from time to time later on. 12. Having given this broad field of operation, Clause 2(j) of the Scheme also envisage certain ineligible industries which were not to be given benefit of Scheme. Those industries, captioned as 'ineligible industries', were listed in Annx. B to the Scheme. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mechanical process is required to be applied for filling gas cylinders with LPG and, in doing so, LPG is required to be mixed with air; that is to say, it is not filled in the cylinders, in the same condition in which it is stored in bulk storage. 17. It is a matter of common knowledge that liquefied petroleum gas is a highly inflammable article and tends to catch fire when it comes in contact with air. Obviously, therefore, packing of air along with LPG in the cylinders to be marketed to consumers has definite connotation and a scientific reason, that has been explained by the petitioner that it is because of mixture of air alone that LPG becomes usable by consumers as fuel gas. It could not be used as fuel in liquid form but admixturing of air with LPG is essential for making it marketable for end consumer use, as part of process of filling gas cylinders with LPG for use by consumers as fuel gas. If that be so, the conclusion is not far to reach that the petitioner is engaged in the process to bring the commodity in marketable condition. That may be the last lap of manufacturing process to complete, rendering the LPG as marketable commodity and, if that conclusion is reached, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o consideration the effect of finding about process reached by it on the marketability of the commodity which is an essential ingredient of manufacturing. 22. The decision relied upon by the Tribunal as well as by learned Counsel for the respondents, of Gujarat High Court in Kosan Gas Company's case (supra), in our opinion, does not render any assistance to the controversy before us inasmuch' as the decision was founded on admitted facts as will be apparent from the following statement in the judgment: On admitted facts in the instant case, the activity as admitted by both the sides carried on by the assessee is of transferring the LPG from big or bulk container to small cylinders with a view to effect efficient delivery to the customers or clients. 23. Therefore, the question whether the transfer of LPG from big or bulk container to smaller containers involve its mixing with air through application of mechanical process, was neither raised by the parties before Gujarat High Court nor answered by the Court. Since like facts are not admitted here and have been found otherwise by the Tribunal, the ratio of decision in Kosan Gas Company (supra), in our opinion does no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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