Manufacture and commercial identity: conversion of hot rolled steel strips to cold rolled steel strips qualifies for tax remission.

Conversion of hot rolled steel strips into cold rolled steel strips was treated as manufacture because the process produced a commercially distinct article with different physical characteristics, uses, specifications and value. The same treatment under a declared-goods classification for a limited sales tax purpose did not erase the separate commercial identity of the two products for other statutory purposes. On that basis, cold rolled steel strips were recognised as different commercial commodities, and the assessee was entitled to tax remission and related incentive benefits under the applicable sales tax provisions.

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Issues: Whether conversion of hot rolled steel strips into cold rolled steel strips amounts to manufacture and whether the resulting goods are different commercial commodities so as to entitle the assessee to remission of tax under the incentive scheme and the relevant sales tax provisions.

Analysis: The process of producing cold rolled steel strips from hot rolled steel strips involved several stages of treatment and processing, resulting in a product with different physical characteristics, uses, specifications, and value. The Court applied the statutory definition of manufacture and the settled principle that manufacture requires a transformation producing a new and distinct article with a different name, character, or use. It held that the fact that both products fall within the same sub-item for the limited purpose of declared goods under the Central Sales Tax Act does not destroy their different commercial identity for other purposes. The evidence, including trade and technical materials and separate ISI specifications, supported the conclusion that the two goods are commercially distinct.

Conclusion: The conversion process amounts to manufacture, and cold rolled steel strips are different commercial commodities from hot rolled steel strips. The assessee is therefore entitled to the benefit of the incentive scheme and remission under section 10G of the Bengal Finance (Sales Tax) Act, 1941, as well as the corresponding benefit under section 41 of the West Bengal Sales Tax Act, 1994.

Final Conclusion: The challenge to cancellation of the eligibility certificate failed, and the assessee's claim to tax remission on manufacture of cold rolled steel strips was upheld.

Ratio Decidendi: A process amounts to manufacture when it brings into existence a commercially distinct product with a different name, character, or use, and treatment of goods as the same for a limited tax purpose does not alter their separate commercial identity for other statutory purposes.

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