1979 (7) TMI 234

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....e assessment year involved is 1974-75 and the short question is as to whether the assessee is a manufacturer within the meaning of section 2(e-1) of the U.P. Sales Tax Act. The assessing authority has treated the assessee as a manufacturer and the first appellate court has confirmed that finding. It has essentially relied on clause I of the agreement which the assessee had entered with the railway....

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....rity, the assessee does not manufacture any item of his own. He merely purchases coal ash from the railway yards and for that purpose a certificate issued by the railway administration on 31st December, 1977, was produced before him. The learned revising authority has hence held that the assessee is not liable to any tax. Aggrieved, the Commissioner of Sales Tax, U.P., Lucknow, has filed this revi....

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....he word "manufacture" has various shades of meaning and, in the context of sales tax legislation, if the goods to which some labour is applied remain essentially the same commercial commodity it cannot be said that the final product is the result of manufacture. Sales of pig bristles to foreign countries after they had been treated with chemicals and put to a certain manual process were not regard....

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.... be seen, therefore, that the activity of the assessee, which, at best, consists of sifting of ash and small pieces of coal of different sizes, cannot amount to manufacture. For my satisfaction, the agreement relating to the year under consideration, clause 1 of which has been extracted by the Appellate Assistant Commissioner (Judicial), was produced before me. The heading of the agreement is: ....