TaxTMI 
TaxTMI 
2014 (4) TMI 754
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.... aforesaid industrial policy, the State Government in exercise of its powers under Section 7(3)(b) of the Bihar Finance Act, 1981 (for short 'the Act') has issued Notification No.1995 dated 04.04.1994, whereby the State Government has granted exemption from payment of sales tax on purchase of raw materials used directly in the manufacture of goods. The exemption granted under the aforesaid Notification is for 46 different categories of industries including iron and steel industry. The exemption under the said Notification is available for a period of 7 years from the date of commencement of the commercial production. 4. To avail the benefit under the aforesaid Notification, the appellant-industry had approached the Deputy Commissioner of Commercial Taxes, Dhanbad Circle, Dhanbad for the grant of exemption inter alia for three commodities (1) pencil ingots, (2) sheets (3) agricultural and household implements. The aforesaid Commissioner after considering the application so filed by the appellant had issued a certificate in form B-1, dated 30.04.1997. In the said certificate it is clearly stated that the raw materials that are exempted from sales tax are "all types of iron a....
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.... had approached the Writ Court once over again in Writ Petition No. 4646 of 2002. The High Court has rejected the petition and has confirmed the orders passed by the Deputy Commissioner of Commercial Taxes and the Commissioner of Commercial Taxes and these orders are called in question before us. 12. Shri Ambhoj Kumar Sinha, learned counsel for the appellant would contend that the High Court as well as the revisional authority were not justified in coming to the conclusion that the activity of the appellant did not involve any manufacturing activity. The learned counsel would further submit that the definition of 'manufacture' in the Act is wide enough to include the activity of the appellant as manufacturing activity. In aid of the aforesaid submission, learned counsel has taken us through the definition of 'Manufacture' that finds a place in dictionary clause of the Act. The learned counsel has also relied upon certain observations made by this Court in the case of Ashirwad Ispat Udyog and Ors. vs. State Level Committee and Ors., 1998 (8) SCC 85. 13. Per contra, learned counsel for the State of Jharkhand submits that this Court need not look into the defin....
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....luding coke etc., used as fuel, oil equipments co-material etc." 16. The other clauses in the aforesaid Notification need not be noticed by us, since, the reference to those clauses may not be necessary for the purpose of disposal of this appeal. 17. In order to resolve the controversy between the parties, we need to notice the definition of 'Manufacture' in the Act since Clause 2 of the Notification specifically notes that an industrial unit would be entitled for exemption for such raw material which is directly used in the manufacture of goods and therefore it is pertinent to observe what constitutes a manufacturing activity under the Act for the manufacture of such goods as notified in the Government notification in question. 18. The definition of 'Manufacture' in the Act is very wide and the same is as under: 'Manufacture' with all its grammatical variations and cognate expressions, means producing, making, extracting, altering, ornamenting, finishing or otherwise processing, treating, adapting any goods but does not include such manufacture or manufacturing process as may be prescribed." 19. After the remand order that was passed by the Joint Commi....
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....nishing and sizing of iron scrap using electricity powered machines. Therefore, using different procedures, the Unit processes iron and scrap and manufactures household and agricultural articles, household articles like Spade, hasuan, Khurpi, Kudal, Tawa, Chalini etc. in a manufactured condition were found in the premises. When a request for the account book was made, it was informed that the account books were with the accountant and it was not possible to produce them at that time. This inquiry report is being given after a detailed inspection of the Unit. The Unit has been informed to keep the account books in the Unit itself so that necessary inspection can be done at the time of inspection itself. We were also informed that the Unit had been exempted from sales tax for the period 30.01.1997 to 29.1.2004 under Notification Nos. S.O.95 dated 4.4.1994 under the Industrial Incentive Policy, which was cancelled in the year 1998 under the orders of Joint Commissioner, Commercial Tax, Dhanbad Division, Dhanbad and therefore, they are not able to use the exemption." 20. Though the said report was available before the Deputy Commissioner of Commercial Taxes whe....