2017 (10) TMI 948

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..... to be engaged in the "manufacture" of a taxable commodity. The revisionist admittedly purchases cold drink concentrate and thereafter dilutes the same by adding water and infusing gas to confer effervescent qualities to the ultimate product which is then sold to the consumers through its vending machines. The case of the revisionist was that the process of dilution does not amount to "manufacture" as envisaged under the 1948 Act. Shri Piyush Agrawal, learned counsel for the revisionist, has placed reliance upon two decisions of the Supreme Court to submit that no new marketable commodity comes into existence so as to warrant the Department taking the view that the assessee was undertaking a manufacture of goods. He placed reliance upon t .....

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..... The process undertaken by the revisionist results in the formation of a commodity which obtains an identity which is distinct from the original product which was cold drink concentrate. Viewed either from the commercial or common parlance test it cannot be said that cold drink concentrate and an aerated drink are viewed as identical or synonymous commodities. The Court is further of the considered view that the operations undertaken by the revisionist would clearly fall within the ambit of "...otherwise processing, treating or adopting goods." This Court in M/S Shyam Behari Lal Keserwani Vs. Commissioner U.P. Trade Tax 2016 (9) ADJ 583 had noticed the expansive reach of the expression "manufacture" as defined under the 1948 Act and had ma .....

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..... ctivity was carried on, but also such activities which do not necessarily result in bringing into existence an article different from the articles on which such activity was carried on. For example, the activity of ornamenting of goods does not result in manufacturing any goods which are commercially different from the goods which had been subjected to ornamentation, but yet it will amount to manufacture within the meaning of Section 2(e­1) of the U.P. Trade Tax Act since an artificial meaning of "manufacture" is given in Section 2(e­1). Hence, whether the commercial identity of the goods subjected to the processing, treating or adapting changes or not, is not very material.' The test of a new commercial commodity would not th .....

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