https://www.taxtmi.com/caselaws?id=165476 Mere cutting and polishing of granite stones was not treated as manufacture for concessional treatment under the Karnataka Sales Tax Act, so a broad construction of "manufacturing unit" was rejected and the Revenue's view on that point was upheld. Penalty under sections 5A(2) and 5A(3) was, however, unsustainable because the assessee's classification was genuinely doubtful, the authorities had earlier accepted the activity as manufacturing, and the department itself had issued a circular reflecting uncertainty. The revision petition therefore failed overall, with the penalty set aside. en-us Tue, 15 Dec 2009 00:00:00 +0530 Mon, 20 Oct 2014 17:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=165476 Mere cutting and polishing of granite stones was not treated as manufacture for concessional treatment under the Karnataka Sales Tax Act, so a broad construction of "manufacturing unit" was rejected and the Revenue's view on that point was upheld. Penalty under sections 5A(2) and 5A(3) was, however, unsustainable because the assessee's classification was genuinely doubtful, the authorities had earlier accepted the activity as manufacturing, and the department itself had issued a circular reflecting uncertainty. The revision petition therefore failed overall, with the penalty set aside. Case-Laws VAT and Sales Tax Tue, 15 Dec 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=165476