2004 (2) TMI 669

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....ulk container into small cylinders is a complicated process involving use of compressors, evacuating systems, filling guns, etc. It is alleged that without the use of such machinery/equipment, it will not be possible to transfer gas which is received by it in bulk to small cylinders. It is submitted that machinery that are used by the appellant for this purpose fall under entry 1(iii)(a) of Part M of the Second Schedule to the Act. 3.. The Government of Karnataka, by notification dated March 31, 2000 issued under section 8-A of the Act reduced the tax payable by a dealer under section 5 of the Act in respect of sale of machinery and tools specified in Sl. No. 1(iii)(a) of Part M of the Second Schedule to an industrial unit located in ....

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....aid clarification order dated February 11, 2003 on the ground that the definition of the term "manufacture of gas" in the Gas Cylinders Rules, 1981 and the definition of "manufacture" in the Indian Explosives Act, 1884 were not considered by the Authority. 5.1 The Explosives Act, 1884 was enacted to regulate the manufacture, possession, use, sale, transport, import and export of explosives. Section 17 enables the Central Government to declare any substance which appears to it to be specially dangerous to life and property, by reason either of its explosive properties or of any process in the manufacture thereof being liable to explosion, shall be deemed to be an "explosive" within the meaning of the said Act. The said section further pro....

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....ontainer, for purposes of sale, amounts to manufacturing or processing of LPG for sale. The term "manufacturing and processing" though not defined in the Sales Tax Act has a clear and definite connotation in sales tax laws. 6.1 The Supreme Court in Deputy Commissioner of Sales Tax v. Pio Food Packers [1980] 46 STC 63, defined "manufacture" thus: "Commonly, manufacture is the end result of one or more processes through which the original commodity is made to pass. The nature and extent of processing may vary from one case to another, and indeed there may be several stages of processing and perhaps a different kind of processing at each stage. With each process suffered, the original commodity experiences a change. But it is only when t....

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.... While any operation involving removal of impurities or making value additions or preservatives may amount to processing, mere repacking or dividing into smaller quantities for purposes of sale or storage is not processing. In the case of solid substances, cutting, trimming, peeling and polishing may amount to processing as they bring about a definite change in the commodity, though not altering the nature or identity of commodity. Such operations are however not possible in the case of liquids and gases. Be that as it may, what is clear is that no processing is involved when a commodity (any solid or liquid or gas) is merely divided into smaller lots or quantities. If a dealer purchases a bag containing 100 kgs. of rice and divides it into....

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....Act, reference can be made to the law dealing with gases and cylinders. It is submitted that having regard to the definition of "manufacture of gas" in Gas Cylinders Rules, even transfer of compressed gas from one cylinder to another, would amount to manufacture of gas; and that therefore re-filling gas cylinders by mechanical process should be considered as a manufacturing activity, even though it does not involve any change in the commodity (gas). It is now well-settled that a definition of a word given for a specific purpose in an enactment cannot be relied upon to interpret the said word used in a general sense in another enactment. For example, the special definition of the word "transfer" under section 2(47) of the Income-tax Act, 196....