1993 (1) TMI 279

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....lly designed tins of smaller different sizes was not a process of 'manufacture' as defined in section 2(16) of the Gujarat Sales Tax Act, 1969, and that the sales of such tins of smaller different sizes along with special adaptors cannot be said to be sales of a new commercial commodity as manufactured by the opponent-firm?" 2.. The following is the brief factual background of the case: The opponent-firm, M/s. Asian Aerosol, which is a small-scale industry established in the industrial estate at Vapi, carries on business of manufacturing silicon spray, etc., and one of its activities is of refilling liquid petroleum gas ("LPG", for short) in smaller packings for sale. For this purpose it purchases inflammable gas in a cylinder of 14 k....

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....ss involving a valve and small rubber adaptor had to be applied for transferring the contents from larger cylinders to smaller packings and then from the smaller packings to the cigarette lighters of different brands; (iii) An elaborate scientific mechanical process had to be adopted for transferring gas from a large container of 14.2 kilograms into different tins of smaller sizes; (iv) A comparison of the prices of LPG cylinders and of smaller containers indicated a vast difference in cost and profit. In view of these four factors the Deputy Commissioner held that there was a manufacturing activity and a new commercial commodity had come into existence. 5.. The opponent-firm challenged this determination by filing Appeal No. 15....

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....tion Ltd. and resell the gas by filling in smaller cylinders. The question which arose at the time of assessment for the relevant period was whether it was a resale or manufacture. The Sales Tax Officer held it was a case of resale of the goods purchased from the registered dealer and accordingly deductions were allowed. However, in suo motu revision by the Assistant Commissioner of Sales Tax it was held that such a process of transferring the gas into smaller cylinders would amount to manufacture and, *Reported in [1992] 87 STC 236 (Guj). therefore, no deductions were permissible. The matter was carried before the Sales Tax Tribunal at the instance of the assessee. The Tribunal set aside the orders of the Assistant Commissioner, on reachin....