Commencement of business includes actual manufacturing and sales, so trial production did not defer entry tax liability.

The statutory definition of business was construed broadly to include manufacturing activity even without immediate profit, so commencement of cement production and sales marked commencement of business. On the facts found, production and sale had begun on 05.08.2010, and the description of that activity as trial production did not change its legal character. The earlier authority concerning materials used to construct a cement plant was held inapplicable because this case concerned actual manufacture after the plant was set up. Entry tax was therefore sustained and the finding on commencement of business was upheld.

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Issues: Whether goods consumed during trial production were exigible to entry tax on the footing that business had commenced when manufacturing activity and sale of cement began, rather than on the later date claimed as the start of commercial production.

Analysis: The expression "business" in Section 2(d) of the M.P. VAT Act, 2002 is wide enough to include manufacture even if it is not carried on with a profit motive or does not immediately yield profit. On the facts found by the authorities, production of cement had started on 05.08.2010 and sale had also commenced from that date. The characterization of that activity as trial production did not alter its legal character. The reliance placed on the earlier decision concerning material used for construction of a cement plant was held inapplicable because the present case involved actual manufacture after the plant had been set up.

Conclusion: The finding that business had commenced on 05.08.2010 was upheld, the levy of entry tax was sustained, and the issue was decided against the assessee.

Ratio Decidendi: Where the statutory definition of business includes manufacture irrespective of profit motive or profit accrual, actual commencement of manufacturing activity and accompanying sales marks commencement of business, and a mere label of trial production does not postpone tax liability.

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