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TMI Blog2024 (8) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase centres. For manufacturing of sugar, crushing of surgarcane is an integral part and for that purpose, sugarcane has to be transported from its place of storage or where it has been purchased to the point of crushing pit where it has to be off loaded for crushing. To my mind, this is integrally connected part of process of manufacturing of sugar and therefore diesel purchased against Form-C if used for cane procurement from centres to factory, it would not amount to violation of purpose for which the said diesel was purchased.' Thus, undoubtedly, the transportation of sugarcane from the Cane Purchase Centre to the Factory Premises is included in the term 'manufacture' of sugar and the Tribunal has not correctly appreciated the controversy and has clearly erred in law. Benefit obtained by the revisionist under the Notification dated 07.12.2019 which according to the State Advised Price, the revisionist was also given 42 paisa per quintal per kilometer to a limit of Rs. 8.35 p per quintal for transportation of the sugarcane from the Cane Purchase Centre to the Factory Premises - HELD THAT:- The benefit granted by Notification dated 07.12.2019 clearly confines to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued by the State of U.P. dated 10.08.2017 wherein the industrial units registered under the U.P. G.S.T. Act, 2017 were entitled for concessional rate of tax on the price of diesel which is used in the process of manufacture of taxable goods against a certificate prescribed by the Commissioner. 3. It has been submitted by learned counsel for revisionist that revisionist is under the U.P. G.S.T. Act and is engaged in manufacture of sugar by its unit at Balrampur, Uttar Pradesh. It is stated that for the purpose of manufacture of sugar, the sugarcane is purchased from the farmers which are brought by them to the cane purchase centre established within the reserved area or assigned area. From the cane purchase centres the sugarcane is transported by the revisionist industrial unit to the factory premises where it is crushed and ultimately results in manufacture of sugar and also other byproducts. 4. The controversy pertains to the purchase of diesel at concessional rate of tax as per Notification of the State Government dated 10.08.2017 where the concession could not be availed by the revisionist due to want of certificate of the Commissioner as prescribed therein. 5. The petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is no longer in res-integra and a Coordinate Bench of this Court in the case of M/s Triveni Engineering Industries Ltd Vs. Commissioner Trade Tax, (Sales/Trade Tax Revision No. 1496 of 2004) has extensively dealt this aspect, as under:- 6. The term used in Section 8(3)(b) of Act, 1956 is for use by him in manufacture or processing of goods for sale , which are relevant for the purpose of present case since other items mentioned therein are not admittedly attracted. The question would be whether the two activities, in respect whereto revenue has found assessee guilty of violation, the purpose, for use of which, diesel was allowed to be purchased against Form-C, is one authorised or not. 7. In order to understand, it would be appropriate first to examine as to what is the actual way in which assessee claim aforesaid two activities to constitute part of manufacture and processing of goods. 8. The assessee deals in manufacture and sale of sugar for which sugarcane is the basic raw material. The sugarcane is produced by individual farmers. Sugarcane constitutes basic raw material for the assessee for manufacturing sugar. However, supply and purchase of sugarcane from farmers is not fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f term manufacture is that it means bringing into existence a new substance. The word manufacture implies a change but every change in the raw material is not manufacture. 12. In CST Vs. Lal Kunwa Stone Crusher (P.) Ltd., (2000) 118 STC 287 (SC) the Court said that definition of the word manufacture makes it clear that every activity in relation to goods not only alter the same but also processing the same has also been included. 13. The term manufacture includes any process or part of process for making, altering, ornamenting, finishing, taking, labelling or otherwise drawing or tapping with a view to sell or distribute in the context of a drug. The manufacture involves series of processes and includes any process incidental or ancillary to the completion of a manufactured product as held in Union of India Vs. Ahmedabad Electricity Co. Ltd., (2003) 11 SCC 129. 14. In the context of mining of ore, the Court in Chowgule Co. Pvt. Ltd. and Anr. Vs. Union of India Ors., AIR 1981 SC 1014 said: Where a dealer is engaged both in mining operation as also in processing the mined ore for sale, the two processes being interdependent, it would be essential for carrying on the operation of proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f storage or where it has been purchased to the point of crushing pit where it has to be off loaded for crushing. To my mind, this is integrally connected part of process of manufacturing of sugar and therefore diesel purchased against Form-C if used for cane procurement from centres to factory, it would not amount to violation of purpose for which the said diesel was purchased. The question no.1, therefore, is answered accordingly. 11. According to the aforesaid judgment, undoubtedly, the transportation of sugarcane from the Cane Purchase Centre to the Factory Premises is included in the term 'manufacture' of sugar and the Tribunal has not correctly appreciated the controversy and has clearly erred in law. 12. It has further been submitted that the said judgment has become final and the State did not challenge the same before Hon'ble the Supreme Court 13. The second question which arises for consideration is with regard to the benefit obtained by the revisionist under the Notification dated 07.12.2019 which according to the State Advised Price, the revisionist was also given 42 paisa per quintal per kilometer to a limit of Rs. 8.35 p per quintal for transportation of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided, while by Notification dated 10.08.2017. Benefit for concessional rate of tax was provided to all the industrial units for the purpose of manufacture of taxable goods. Clearly even if the revisionist has received benefit under the Notification dated 07.12.2019 he cannot be denied the benefits under Notification dated 10.08.2017 inasmuch as there is no provision for excluding the revisionist for being granted benefit under the said Notification, and no such restrictions could be placed before us. 18. Had it been the intention of the Government to deny the benefit of the Notification dated 10.08.2017 in light of the fact that the sugar industrial units are already obtaining benefits under Notification dated 07.12.2019, the said facts would have been clearly mentioned in the Notification dated 10.08.2017. In absence of any restrictive clause in the Notification dated 10.08.2017, the Tribunal as well as the Commissioner, Commercial Tax had erred in interpreting and restricting the interpretation of the Notification dated 10.08.2017 in its application to the sugar manufacturing units. 19. In light of the aforesaid discussions, this Court is of the considered view that Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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