TaxTMI 
TaxTMI 
2015 (1) TMI 132
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....d. v. State of Kerala [2003] 131 STC 538 (Ker), held that no manufacturing was involved. We have heard learned counsel for the parties. The learned counsel for the petitioner submits that the processing of raw water into drinking water involves manufacturing process. He has relied upon process flow chart. He also submitted that drinking water is a distinct commodity than raw water and considering this aspect members of the petitioner-association have been granted eligibility certificate by the Director of Industries and Commerce, for claiming incentives including sales tax exemption under the industrial policy which itself shows that the State has treated the process to be manufacturing. Once eligibility certificates were issued, the same could not be cancelled unless there is violations of the conditions for exemption, merely on change of opinion on a debatable issue as held by this court in judgment dated August 23, 2012 in WP(C) No. 2603 of 2011 (Sunil Kumar Taparia v. State of Assam [2013] 57 VST 552 (Gauhati)). Reliance has also been placed on judgment of the honourable Supreme Court in Income-tax Officer v. Arihant Tiles and Marbles Pvt. Ltd. [2009] 320 ITR 79 (SC); [20....
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....scalant dosing Micron filter Water check point N.F.Membrane U.F.Membrane Water check point N.F.T. Water U.V. Dis-Infection U.V. Disinfection N.F. UF Treated water & ozone blending tank Ozone generating Water check point Batch tank I & II Water check point S.S. Micron filter S.S. Micron filter Jar washing unit I-III Automatic rinsing filling and capping unit ULO : Under Lab Observation MGS : Multi Grade Sane IR : Iron Removal AC : Activate Carbon UF : Ultra Filtration NF : Neno Filtration Jarfiling unit I-II Jar inspection Visual inspection-I Jar packaging unit ULO MRP printing unit Ready for despatch Labelling section Product water check point Visual inspection-II Label shrinking unit Packing section Product water che....
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....rocessing-placed before the court in a subsequent case. These opinions are, of course, relevant and would be amongst the various factors to be taken into account in deciding the question." Coming to the present case, it is seen that though the raw water is subjected to the process of purification, it continues to be water. Its character and use remains the same though quality has been improved. It cannot, thus, be held that a new and distinct commercial commodity has emerged on account of the process undertaken. The matter was considered by the Kerala High Court in the light of judgment of the honourable Supreme Court in Tungabhadra Industries Ltd. v. Commercial Tax Officer [1960] 11 STC 827 (SC), as follows (page 565 in 131 STC): ". . . ground water which is taken and used by the appellants as raw material for their finished product, viz., mineral water/packaged drinking water, can be used for all purposes for which the so called mineral water is used. Similarly the so called mineral water can be used for all the purposes for which the ground water can be used. What is done by the appellants is to employ various processes described by them to bring the commodity more acce....
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....al commodity. In the instant case, the very nature of the activity does not result in manufacture because no new commercial commodity comes into existence." Similar view was also taken in State of Maharashtra v. Shiv Datt & Sons [1992] 84 STC 497 (SC); [1993] Supp. 1 SCC 222, as follows (page 503 in 84 STC): "10. . . . It is true that under the section it is not necessary that there should be 'manufacturer' in the sense that a new commodity has been brought into existence as would have been required if that word is interpreted in its literal sense. But, at the same time, the section should be so interpreted to mean only such of the various processes referred to in the definition and applied to the goods as are of such a character as to have an impact on the nature of the goods. . ." The matter was also considered by this court in Deepak Kumar Poddar [2010] 31 VST 8 (Gauhati); [2010] 6 GLR 835, wherein it was held, in the context of conversion of raw mustard oil into filtered mustard oil that no manufacturing was involved and it was concluded (pages 17 and 18 in 31 VST): "16. From the above discussions it would be clear that the true purport and meaning of the wi....