1992 (3) TMI 323

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....urer as defined under the State Act is entitled to purchase any goods or raw material incidental to and connected with the manufacturing process at concessional rate on production of C form provided that such goods or material are declared and mentioned in the registration certificate issued to him. 2.. By these petitions the petitioners seek to challenge orders dated January 8, 1988, passed by the Sales Tax Officer, Indore (Circle 4), filed as annexure "D " in the petitions and the order dated November 3, 1988 passed in revision by respondent No. 3, filed as annexure "F" in both the petitions. 3.. By order dated November 30, 1990, a. show cause notice was ordered to be issued to the respondents calling upon them to show cause as to w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....water and is rightly entitled to the benefit of section 8(3) of the Central Sales Tax Act. Shri Singh, learned Additional Advocate-General, contended that drilling of tube-wells and resultant outcome of water can by no means be said to manufacture or processing of water. 9.. Whether drilling of tube-wells amounts to manufacture of water? The petitioners are registered dealers under section 7 of the Central Sales Tax Act as per registration certificate, annexure "A". Their activity as declared by them and mentioned in annexure "A" is "contractor"-Tubewell drilling-ply-casing pipes. 10.. Shri Mehta has heavily banked upon the expression "for use by him in the manufacturing or processing of goods for sale" as occurring in sub-section (3)....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g or adapting any drug with a view to its sale and distribution, but would not include mere compounding or dispensing of drug [see section 3(7) of the Drugs and Cosmetics Act, 1940]. In relation to insecticides the term "manufacture" has almost similar meaning [see section 3(j) of the Insecticides Act, 1968].   13.. Manufacture implies a change but every change is not manufacture. There must be such transformation that a new and different article must emerge having a distinctive name, character and use (see South Bihar Sugar Mills Ltd. v. Union of India AIR 1968 SC 922). 14.. It has been held by the Karnataka High Court that preparation of coffee powder by roasting and grinding coffee-seeds is not manufacture (see Meghraj v. B. S....