TaxTMI 
TaxTMI 
2000 (5) TMI 1061
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....eafter converting them into slabs by cutting and polishing. The Rajasthan State Government levied electricity duty under the provisions of the Act. A Notification dated 26.3.1962 was issued by the State under Section 3(3) of the Act granting exemption from tax on the energy consumed by a consumer in any industry in the manufacture, production, processing or repair of goods and by or in respect of any mine as defined in the Indian Mines. Act, 1923. 5. Subsequently a notification was issued on 2.3.1963 superseding the aforesaid Notification dated 23.3.1962. remitting the electricity duty on the energy consumed in electro-chemical industry and in electric furnaces of elecro-thermo industries and-reducing such-duty on the energy consumed in other industries in themanufactnre. production: processing or repair of goods, from 3 naya paise per unit to I naya paisc per unit. Further one more Notification was issued on 1.11.1965 superseding the earlier two Notifications mentioned above and fixing duly at 5 paise per unit as the rate at which electricity duty shall be computed. However, by clause '(c) of the said nolification, the State of Rajasthan reduced the duty on the energy consumed in....
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....ereunder:- Notification dated 26.3.1962 "In pursuance of sub-clause 3 of clause 3 of the. Rajasthan Electricity (Duty) Bill, 1962, read with the declaration inserted therein under section 3 of the Rajasthan Provisional Collection of Taxes Act. 1958 (Rajasthan Act 23 of 1958), the State Government being of the opinion that it inexpedient in public interest to-do so, hereby exempts from tax the-energy-consumed - (1) by a consumer in any industry in the manufacture production, processing or repair of goods', and (2) by or in respect of any mine as defined in the Indian Mines Act, 1923 (Central Act of 1923)-" Notification dated 2.3.1963 ''In exercise of the powers conferred by sub-section (3) of section 3 of the Rajasthan Electricity (Duty Act, 1962 (Rajasthan) Act 12 of 1962) and in supersession of Excise and Taxation Department Notification No. F.9(2>-E&T/62/1 dated the 26th March. 1962, the State Government being of the opinion that it is expedient in public interest to do so. hereby remits the electricity' duly- on the energy consurned in electro' chemical industries and in electric furnaces of electro-thernal industries and reduces such duty on the energy consumed in other in....
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....ave not made any provision for exemption of duty on the electricity consumed by or in respect of mines, it is the ca.se of the Plaintiff that" the electricity- was used for the purpose of pumping out water from the mines to facilitate mining activity', namely excavating of stones. It must be also kept in mind that a mining activity' is distinguished from a manufacturing activity, it appears this removal of exemption in the said Notifications in respect of mines was done consciously so as to bring the mining activity within the purview of Section 3 of the Act. Hence we consider it unnecessary to deal with the notification of 1962 in relation to the claim for exemption by or in respect of a mine. 11. The word "manufacture" is not defined in the Act under which aforementioned three Notifications were issued. The word "manufacture" used in the Notifications under Section 3(3) of the Act, a taxing statute should be understood in its commercial sense, in the absence of the definition of it in the statute itself. The definitions of "manufacture" given in other enactments such as Factories Act, Industrial Dispute Act or the Excise Act cannot be applied while interpreting the expression "....
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.... Delhi Cloth and General Mills Co. Ltd. & Ors. (1977 E.L.T. (J.199) as to the meaning of "manufacture" in para 14 has stated thus:- "The word "manufacture" used as a very is generally understood to mean as "bringing into existence a new substance" and does not mean merely "to produce sonic change in a substance", however minor in consequence the change may be. Tills distinction is well brought about in a passage thus quoted in-Permanent Edition of Words and Phrases. Vol. 26. from an American Judgment. The passage runs thus' "Manufacture implies a change, but every change is not manufacture and yet even' change of an article is the result of treatment labour and transformation: a new and different article must emerge having a distinctive name, character or use." Para 17 of the .same judgment reads thus:- - "These definitions make it clear that to become "goods" an article must be something which can ordinarily come to the market to be brought and sold." 15. In the case of Collector of Central Excise, JaqJur Vs. Rajasthan State Chemical Works, Deedwana, Rajast....