9911796707
TMI Blog2016 (7) TMI 1371X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Sales Tax Act, 1956 Act 1956 is concerned. The revisionist asserts that he purchases and sells lead and lead plates which it obtains from scrap batteries. As is recorded by the Tribunal, it was urged before the authorities that the revisionist purchases old and scrap batteries, extracts the lead plates therefrom, melts them, undertakes a cleaning process and then converts them into a flat form which is described as lead plate. These plates are then sold to manufacturers of batteries. Two submissions were advanced in support of this revision. It was firstly urged that the revisionist is not liable to be treated as a "manufacturer" and could have only been classified as a dealer inasmuch the process undertaken by it did not amount to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corded no reasons for rejecting the declared turnover or for that matter assessing the turnover of the revisionist as Rs. 10,00,000/-. He has in this connection submitted that the revisionist had declared a turnover of Rs. 2,98,254/- which was enhanced by the assessing authority to Rs. 10,00,000 and subsequently reduced by the first appellate authority to Rs. 8,00,000/-. Sri B.K. Pandey, learned Standing Counsel, on the other hand, contended that as per the submissions advanced before the authorities below it was the admitted case of the dealer that the lead plates which had been obtained from scrap batteries were melted, cleaned and thereafter converted back into lead plates which were then sold to manufacturers of batteries. He submits t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure" as defined under the Act. As noted above, the activities included under the definition clause of the 1948 Act includes not just producing goods but also the activities of extraction, alteration, finishing and "or otherwise processing, treating or adapting any goods". Once it was the admitted case of the assessee that the lead plates were obtained from old batteries, melted, the lead extracted therefrom, cleaned and thereafter pressed in order to make them into plates, the activity, in the opinion of this Court, would clearly fall within the expression "manufacture". The submission that manufacture can only mean the production of a new commercial commodity wholly distinct from the original commodity is not liable to be accepted. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Act is very wide, which includes processing, treating or adapting any goods. Hence, in our opinion, the expression "manufacture" covers within its sweep not only such activities which bring into existence a new commercial commodity different from the articles on which that activity 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(e-1) of the U.P. Trade Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h had not been duly accounted for in the books of account. Having arrived at this conclusion the assessing authority obviously and justifiably proceeded to reject the books of account and undertook an exercise of assessment to the best of his judgment. What the Court however finds is that all that the assessment order records is the quantity of articles which had not been found accounted for. The quantification of estimated turnover which was placed at Rs. 10,00,000/- is not imbued by any reasoning. At least, the assessment order does not disclose as to and or on what basis the value of the escaped turnover was arrived at. While, it is true that a best judgment assessment would necessarily entail a degree of guess work and confers a certain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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