1991 (7) TMI 303

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....revision. According to the Assistant Commissioner of Sales Tax, the plastic spools were packing material. In his opinion since the plastic spools were polythene packing materials, they were "prohibited goods" falling within entry 12 of Schedule II, Part A. Therefore, the Assistant Commissioner of Sales Tax held that the dealer was not entitled to set-off. Accordingly he ordered to remove the set-off granted to the dealer which was for an amount of Rs. 11,479.48 and for Rs. 8,682 for samvat years 2031 and 2032, respectively. 2.. Against the orders passed by the Assistant Commissioner of Sales Tax, revisions were filed by the dealer before the Tribunal. The Tribunal confirmed the decision of the Assistant Commissioner of Sales Tax and r....

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....mes marketable it may not be labelled as goods. Even in excise law, an article cannot be said to be goods unless it has become marketable. This is the view taken by the Supreme Court in the case of Collector of Central Excise v. Eastend Paper Industries Ltd. [1990] 77 STC 203. In excise law, the taxing event is manufacture and not sale. Even so the Supreme Court held that the manufacture of goods will be complete only when goods become marketable. In the aforesaid case, the Supreme Court has, inter alia, observed as follows: "It is law now that excise is a duty on manufacture. Manufacture is the process or activity which brings into existence new identifiable and distinct goods. Goods have been understood to be articles known as ident....

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...., i.e., adhesive plaster tapes. It is not disputed that adhesive plaster tapes can be marketed only after wrapping them on plastic spools. Therefore, plastic spools are to be held component part of the adhesive plaster tapes, that is, the goods marketed. Hence plastic spools cease to be packing material. Once it ceases to be packing material, it cannot be considered to be an item falling in entry 12(viii), i.e., polythene packing material. In view of this position of law as laid down by the Supreme Court, the question has got to be answered in the negative, in favour of the assessee and against the Revenue. 5.. The learned counsel for the Revenue submitted that the actual manufacturing of the adhesive plaster is over when the same is wra....