TaxTMI 
TaxTMI 
2014 (6) TMI 882
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....n of the Tribunal that the activity of the applicant resulted in production of different commercial commodities or commodities known differently in common parlance, is perverse and, therefore, not tenable in law? b.Whether on the facts and circumstances of the case, the Hon'ble Tribunal is right in holding that as a result of the amendment made in the definition of manufacture in Section 2(16) of the Act on 1.4.1989, activity of the applicant of preparing small size of the rough stone from larger size or rough stone without any polishing thereof would amount to manufacturing activity under the provisions of the Act as it stood after the amendment ?" 2. The facts leading to the present Reference are as under: 2.1. That the appli....
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....s vehemently submitted that as the activity of the applicant is to make small stones by hammering / cutting big stones and there was no activity of polishing and therefore, said activity cannot be said to be "manufacture". It is submitted that as such there was no new product which was being manufactured and therefore, also the activity of the applicant cannot be said to be "manufacture". She has heavily relied upon the decision of the Hon'ble Supreme Court in the case of State of Maharashtra vs. Mahalaxmi Stores reported in 2003(152) ELT 30 (S.C.): JT 2002(9) SC 633 in support of her above submissions. 4. On the other hand, Shri Jaymin, learned AGP for the respondent State has submitted that as such definition of substituted Section....
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.... sizing or hewing; (b). in relation to cottonseed oil, refining of washed cottonseed oil; (c). in relation to marble and stone, hammering, cutting, sizing or polishing, (d). in relation to chalk lumps, the grinding, but does not include such manufactures or manufacturing process as may be prescribed." 6. Considering the above, in relation to marble and stone, any activity of hammering, cutting, sizing or polishing can be said to be an activity of "manufacture". Therefore, the contention on behalf of the applicant that making small stone from big stone by hammering and / or cutting but not polishing cannot be said to be activity of "manufacture" cannot be accepted. As per substituted Section 2(16) of the Act as is stood "manufact....
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....otherwise processing, treating or adapting any goods but does not include such manufacture or manufacturing processes as may be prescribed." 6.1. On interpreting and considering aforesaid Section 2(17) of the Act, the Hon'ble Supreme Court in para 6 has observed and held as under: 6. From a perusal of the definition, extracted above, it is clear that the processes of producing, making, extracting, alternating, ornamenting, finishing or otherwise processing, treating or adapting of any goods fall within the meaning of the term "manufacture". But it may be pointed out that every type of variation of the goods or finishing of goods would not amount to manufacture unless it results in emergence of new commercial commodity. In the inst....