TaxTMI 
TaxTMI 
2012 (8) TMI 870
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.....P.(C) No.1683 of 2012, the petitioner has challenged order dated 28.8.2009 passed by the Commissioner of Taxes, Guwahati under Section 105 of the Assam Value Added Tax Act, 2003 holding that process of production of soapstone powder from soapstone did not amount to manufacturing for the tax benefits under the Assam Industries (Tax Exemption for Pipeline Unit) Order, 2005 and consequential order dated 3.3.2010 declining to renew certificate of entitlement. 3. Case of the petitioner is that it is producing soapstone powder from soapstone. The process followed is as follows :- " Soapstone which is also known as Steatite or Soaprock is a metamorphic rock, a talc schist. It is largely composed of mineral talc and is rich in magnesium. It ....
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.... entire raw materials which is soapstone is washed and thereafter the undesirable particles as well as quartz stone is separated from the basic raw material by experienced skill manpower. Subsequent thereto, the entire materials upon being separated from the undesirable particles are dried. Upon being dried, the entire materials again come into a solid form. Thereafter, the said solid form is again sorted out and thereafter put in a jaw crusher whereby the soapstone is processed into small chips. Then by a bucket elevator, it is lifted to a Hooper. In the Hooper, the materials are stored. From the Hooper by a gear pulley, the materials are sent to a Pulverisor. In the Pulverisor, a high speed swing bitter is used. The function of a high spe....
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.... this stage it may further be relevant herein to mention that the difference in the chemical specifications of the raw material i.e. soapstone with the finished product i.e. soapstone powder. The following is stated herein below. Soapstone powder Soapstone (1) Brightness 87 52 (2) Loss on ignition at 9000C 5.0% 8.0% (3) Sand and grit 0.4% 20.0% (4) PH of 10% solution 9.1 9.7 (5) Retention on 300 mesh 1.0% Sample found in lump (6) Moisture 0.5% 4.0% (7) Calcium as CaO Not traceable Not traceable (8) Undesirable Nil Found grits and other foreign particles. 4. Under the Industrial Policy of the State of Assam, 2003, certain sales tax exemption benefits h....
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....w marketable product came into existence, In any case, a view had already been taken by the department in the case of the petitioner and eligibility certificate had been issued. The same could not be cancelled nor refused to be renewed on mere change of opinion on a debatable issue. 5. We have heard learned counsel for the parties. 6. Learned counsel for the petitioner submits that the Department having taken a view that the petitioner was eligible for tax exemption, the said opinion could not be changed without any valid basis. The petitioner having acted upon the exemption, was entitled to continue to avail the said benefit, in absence of change of situation unless it is illegal or inequitable to allow the same. It was also submitte....
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....held the process undertaken by the petitioner to be 'manufacturing', the renewal thereof could be declined merely by change of opinion on a debatable issue. Further question is whether the earlier view holding the process in question to be manufacturing was a possible view. 10. In a recent order dated 23.8.2012 in W.P.(C) No.2603 of 2011 (Sunil Kumar Taparia -Vs.- State of Assam and others), considering the issue in identical circumstances in the context of Clause 12 of the Assam Industries (Tax Exemption for Pipeline Units) Order, 2005, it was observed :- "13. The above clause clearly lays down that eligibility certificate once granted can be cancelled only if there is violation of any condition or information furnished was f....