2004 (11) TMI 530

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....e is only one question which is raised before us and the question is, whether a pre-recorded cassette can be taxed as a new product or it could be exempted as second sale. There are no disputes on facts. The assessing authority assessed it as first sale as a new product. Appeal filed by the assessee, was dismissed. Second appeal filed by the department was, however, allowed. Therefore, this T.R.C.....

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....pes upon which the purchaser would be free to record such sound as he chose. The manufacturer may go one step forward and record sound itself and sell such tapes. It is to cover both eventualities that tariff item 59 is categorised as it is. But it is altogether different to say that by reason thereof the recording of sound on blank tapes, as done by the appellant on job work basis, is a manufactu....

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....ad consistently taken the view that the moment there is transformation into a new commodity commercially known and recognised as a distinct and separate commodity, it should be considered that manufacture has taken place. Supreme Court was of the view that recording of a blank cassette gives rise to a new product. This judgment is latest and is by a three-Judge Bench of the Supreme Court, whereas ....

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....SC); (1997) 10 SCC 543. Hence, this appeal is allowed, impugned order passed by the CEGAT is set aside. There shall be no order as to costs." This only shows that the Revenue had conceded that the controversy before the court was covered by another judgment. The Supreme Court in this case, had no occasion to go into the correctness or otherwise of the judgment reported in Prabhat Sound Studios ....