2007 (3) TMI 700

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.... reported in [2005] UPTC 758. (b) Purchase of coal from unregistered dealer has been excluded from the turnover only on the ground that section 3AAAA has been struck down by the honourable High Court in the case of Pioneer Tanneries & Glue Works v. State of Uttar Pradesh [1991] 83 STC 1; [1991] UPTC 585. The said judgment of the High Court stands overruled under the judgment of the honourable Supreme Court in the case of Hotel Balaji v. State of Andhra Pradesh [1993] 88 STC 98; [1993] UPTC 318, wherein validity of section 3AAA has been upheld. (c) The Tribunal has held that refining of the mustard oil by the dealer did not amount to an activity of manufacture, so as to entail taxability. The aforesaid conclusion drawn by the Tribunal ....

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....to be a process of manufacture or that any new product comes into existence so as to entail tax. In support thereof counsel for the assessee has placed reliance upon a judgment Chemicare Products Ltd. v. Assistant Commissioner of Commercial Taxes reported in [2004] 136 STC 617 (Cal). With regards to issue No. (d) it is submitted that the first appellate authority has recorded a finding supported by cogent reasons in favour of the assessee that the soyabean oil seeds purchased, were used for manufacture of oil through solvent process. The finding of fact recorded by the first appellate authority has been affirmed by the Trade Tax Tribunal and, therefore, no interference is required. With regards to the liability of interest, counsel fo....

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....that the assessee had purchased mustard oil and has refined the same to produce refined mustard oil. The controversy as to whether such process of refining amounts to manufacture of new product so as to entail tax on the refined product has been subject-matter of consideration by the honourable Supreme Court in the case of B.P. Oil Mills [1998] 111 STC 188; [1998] UPTC 1020. The honourable Supreme Court has specifically held that after refining a new product came into existence and, therefore, the process amounts to manufacture. In view of the aforesaid the order of the Tribunal holding that refining does not amount to manufacture cannot be legally sustained. On behalf of the department it is contended that in the memo of appeal filed be....