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TMI Blog2021 (8) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... getable oil into refined vegetable oil would not amount to 'manufacture' is set aside - Petition allowed. - W.P. Nos.15880 & 15881 of 2020 And WMP.Nos.19737 & 19738 of 2020 - - - Dated:- 5-8-2021 - Honourable Dr. Justice Anita Sumanth For the Petitioner : Mr.V.S.Sivasundaram in both WPs For the Respondents : Mr.TNC.Kaushik, Government Advocate COMMON ORDER The challenge is to two orders of assessments for the periods 2004-05 and 2005-06 passed under the provisions of the Tamil Nadu General Sales Tax Act, 1959. The only issue that arises is as to whether the refining of oil from crude vegetable oil into refined vegetable oil would amount to 'manufacture'. 2.This very issue has been considered in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Cell 1/11336, dated 31.7.2000 had clarified as below: If the terms raw materials and consumables are synonyms there is no need to add the words including consumables. Since HSD oil and LSD oil can also be classified as consumables they have been specifically excluded in section 3(3). In such circumstances consumables like other fuels, welding electrodes, welding rods, abrasives, carbide tip tools and lubricant oils are eligible for concessional rate under section 3(3) of the Act, subject to other conditions laid down therein. However the fuels must be directly used in the manufacturing process like heating/heat treatment, etc, but if the fuel is used for generation of electricity the concession of section 3(3) is not available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure is defined in clause (f) of section 2 of the Act (Central Excise Act). The definition, as substituted by Finance Act (No:25) of 1975, with effect from March 1, 1975 reads thus: 'manufacture includes any process' : i. incidental or ancillary to the completion of manufactured product. ii. which is specified in relation to any goods in the section or chapter notes of the Schedule to the Central Excise Tariff Act 1985, as amounting to manufacture, and the word 'manufacture shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture if excisable goods, but also any person who engages in their production or manufacture on his own account. (b) In Union ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the series of changes brought about by the process take the commodity to the point were commercially, it can no longer be regarded as the original commodity but is, instead, recognized as a distinct and new article that has emerged as a result of the processes. To a question, whether the processing of 'grey fabric' amounts to a manufacture, it is held at page 424 that, 'grey fabric' after it undergoes the various processes of bleaching dycing sizing, printing, finishing, etc., emerges as a commercially different commodity with its own price structure, custom and other commercial incidents and that there was in that sense a 'manufacture within the meaning of section 2(1) even as unamended, it eminently pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he hands of the respondent is not in order.' 4.The order has, admittedly, attained finality and has not been challenged further. Apart from the case law that has been discussed by the Sales Tax Appellate Tribunal, the Supreme Court in the case of B.P Oil Mills V. Sales Tax Tribunal and others (111 STC 188) after considering a slew of judgments, has considered this identical issue holding the same in favour of the assessee. 5.In the light of the discussion as aforesaid, the conclusion of the assessing authority to the effect that the process of conversion of crude vegetable oil into refined vegetable oil would not amount to 'manufacture' is set aside. The impugned orders of assessments are quashed and these writ petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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