2004 (5) TMI 555

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... High Court of Allahabad has held otherwise in the case of Kaderul Sehat Dawakhana [1984] 56 STC 133; [1984] UPTC 224?" Heard the learned Standing Counsel and perused the record. None appeared for the dealer-opposite party. The dealer-opposite party deals in spices and condiments. These are locally purchased tax-paid goods. The appellant grinds spices and condiments and in some cases it mixes them together and sells them accordingly for the last several years. For the assessment year in question the department accepted the book version of the dealer. However, the assessing officer was of the opinion that the grinding activity of the dealer amounts manufacturing and as such levied tax on the grinded masala, though tax paid sabut masa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....atter was referred to a third Member. The third Member agreed that by grinding whole masala no new commercial commodity has come into existence. This finding could not be disputed by the learned Standing Counsel except that the activity of grinding is processing and therefore the dealer is a manufacturer. I am unable to agree with the aforesaid contention of the learned Standing Counsel. The notification mentioned above, does not use the word "whole" or "grinded". It simply enumerates the various kinds of masala. The Supreme Court in the case of Commissioner of Sales Tax v. Lal Kunwa Stone Crusher (P) Ltd. [2000] 118 STC 287; [2000] 3 SCC 525 has held vide paragraphs 4 and 5 as follows: "4 . . . Each one of the it....