9911796707
TMI Blog1993 (3) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... ards. To appreciate the grievance of the Corporation, it is necessary to set out some statutory provisions. 2. Chapter VIII of the Bombay Municipal Corporation Act enables the Corporation to levy various kinds of taxes including octroi. Section 192 provides that the Corporation can levy octroi duty in respect of entry of the articles into Greater Bombay for consumption, use or sale therein. Section 195 of the Act provides that when any articles upon which octroi has been paid is exported from Greater Bombay, then such amount of tax as specified in subsection (1A) shall be refunded. Sub-section (1A) sets out the quantum of amount of refund. In pursuance of the powers conferred under the Act, the Municipal Corporation has framed Rules known as Bombay Municipal Corporation (Levy) of Octroi Rules, 1965. The Corporation has also framed rules known as Bombay Municipal Corporation Exemption from Octroi (Free Gift, etc.) Rules, 1966. Part II of these Rules sets out exemptions granted in respect of various articles imported or exported for temporary purpose. Rule 7 deals with "Exemption of articles imported or exported temporarily for the purposes of inspection, demonstration, exhibition, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t basis and transported to the factory at Thane. Apart from the change in the dimension, no other change takes place in the wire bars, nor the quantity is reduced. On April 29, 1983 the Company addressed letter to the Deputy Municipal Commissioner demanding 'R' form facility in respect of wire bars which are temporarily imported into Greater Bombay for processing and then exported to Thane within the period prescribed by Bombay Municipal Octroi Rules. The Company asserted that the process does not involve any change in form, condition or appearance except to the extent inherent in the processing. The Deputy Assessor and Collector by letter dated September 13, 1983 informed the Company that the request for grant of 'R' form facility for import in Bombay of copper wire bars for conversion into copper wire rods cannot be considered for want of suitable provision in the Bombay Municipal Corporation Act and the Octroi Rules framed thereunder. The Company then addressed letter dated October 13,1983 to the Municipal Commissioner setting out in detail the process carried out by the processors in Bombay and reiterating the request for grant of 'R' form facility. The Company pointed out tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivity. The expression "process" connotes several meanings and means different things in different context. The word "process' in relation to the Octroi Rules means to subject a particular product or a commodity with the object of making it fine or improving its quality. By the activity of processing, the commodity cannot be transformed into a new commodity. Rule 7 prescribes that articles liable to octroi which are temporarily imported into Greater Bombay for the purpose of inspection, demonstration, exhibition, repairs, processing or any such other similar purposes as may be exempted from octroi. The rule then provides for certain conditions and sub-rule (4) reads as follows" "No change of form, condition or appearance is involved except to the extent inherent in the processing or repairs allowed." Sub-rule (6)(b) sets out that for the purposes of this rule, processing shall include certain activities and sub-rule (6)(b)(2) conifers power upon the Commissioner to include in the list such other processes. The plain reading of sub-rule (4) and sub-rule (6) makes it clear that the process has to be one which does not bring about transformation of one commodity into a totally differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suggested that a different article with distinct character and identity as known in the market has come into existence? The process is only for the purpose of reducing the size of the bars into smaller bars and, in our judgment, such process cannot be treated as manufacturing activity and squarely falls within the processing activity. Shri Dalal referred to the decision of the Supreme Court reported in 1978 (2) Excise Law Times 389 (Union of India v. Hindu Undivided Family Business known as Ramlal Mansukhrai, Rewari and Another) and A.I.R. 1977 Supreme Court 90 (The South Gujarat Roofing Tiles Manufacturers Association and Another v. The State of Gujarat and Another) but the reliance on these authorities is not appropriate. The question which came up before the Supreme Court for consideration has no bearing to the question falling for determination in this appeal. The issue as to whether the particular activity amounts to processing or manufacturing has to be determined with reference to the facts of each case. In our judgment the trial Judge was perfectly right in concluding on the facts and circumstances of the case that the activities of reducing size of wire bars and wire rods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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