2007 (9) TMI 552

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....nst the order of the Tribunal dated September 28, 2002 relating to the assessment year 1996-97. The dispute relates to the levy of tax on consideration received on the sale of import licence which has been issued from the office of the Joint Director General of Foreign Trade, Moradabad. The claim of the dealer was that it was neither manufacturer nor importer in respect of the said transaction an....

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....case of manufacture there has to be some process whether slight or extensive. This act of processing can be carried out only in intangible goods and not in respect of intangible goods; therefore, definition of the term 'manufacture' given under section 2(e1) of the Act applies only to tangible goods and not to intangible goods. REP licences/exim scrips being intangible goods are incapable ....

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....subjecting these goods to tax. Significantly the liability of tax under the aforesaid notification has not been fastened on the manufacturer of these permits and licences. This is so apparently because these permits and licences are not manufactured and there can be no manufacturer thereof. In fact, licences or permits are issued or granted and not manufactured and, therefore, in the said notifica....