TaxTMI 
TaxTMI 
2014 (1) TMI 1619
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....rred to as "the assessee") is engaged in manufacturing and sale of sugar, which is produced from crushing and processing of sugarcane. Besides sugar, bye-products, which also get produced are molasses, bagasse, etc. All the three revisions relate to assessment years 1998-99, 1999-00 and 2000-01. The assessee purchased diesel against form C under section 8(3) (b) of the Central Sales Tax Act, 1956 (hereinafter referred to as "the Act, 1956") and during the period of assessment, had shown use of said diesel in various activities like in generator as fuel, plant and machinery repair and maintenance, sugar bags press mud and bagasse handling, farm equipments' maintenance and repair, and cane procurement. While assessing authority accepte....
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....rpose for which the said diesel was purchased so as to amount violation of section 10(d), attracting penalty under section 10A of the Act, 1956? (ii) Whether user of diesel purchased by the assessee against form C for farm equipments' maintenance and repair would amount to violation of purpose for which the said diesel was purchased so as to amount violation of section 10(d), attracting penalty under section 10A of the Act, 1956?" The term used in section 8(3)(b) of the Act, 1956 is "for use by him in manufacture or processing of goods for sale", which are relevant for the purpose of present case since other items mentioned therein are not admittedly attracted. The question would be whether the two activities, in respect whereto t....
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...."Sugarcane Supply and Purchase Rules, 1954"). The factory owner is required to specify cane purchase centres throughout reserved area/assigned area so that farmers may not be required to transport sugarcane for long distance and factory owner himself would purchase sugarcane at those purchase centres and thereafter transport to its factory for its use. At purchase centres, factory owner is also obliged to provide weighment facilities and adequate labour for loading and unloading cane at such purchase centres. This is evident from rules 38, 38A and 39 of the Sugarcane Supply and Purchase Rules, 1954. The sugarcane purchased by factory owner at purchase centres, therefore, becomes property of factory owner at such purchase centres and therefr....
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....or distribute in the context of a drug. The "manufacture" involves series of processes and includes any process incidental or ancillary to the completion of a manufactured product as held in Union of India v. Ahmedabad Electricity Co. Ltd. [2004] 134 STC 24 (SC); [2003] 11 SCC 129. In the context of mining of ore, the court in Chowgule & Co. Pvt. Ltd. v. Union of India [1981] 47 STC 124 (SC); AIR 1981 SC 1014, said: "Where a dealer is engaged both in mining operation as also in processing the mined ore for sale, the two processes being interdependent, it would be essential for carrying on the operation of processing that the ore should be carried from the mining site where the mining operation comes to end to the place where the proce....
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....5] 1 SCR 900, the court said that if a process or activity was so integrally related to the manufactured goods so that without that process or activity, manufacture may, even if theoretically possible, be commercially inexpedient, goods intended for use in the process or activity would qualify. In the present case, sugarcane in its entirety cannot be purchased by sugar factory at its factory premises and under law, it is bound to purchase from the farmers at cane purchase centres. For manufacturing of sugar, crushing of surgarcane is an integral part and for that purpose, sugarcane has to be transported from its place of storage or where it has been purchased to the point of crushing pit where it has to be off-loaded for crushing. To my ....