TaxTMI 
TaxTMI 
2018 (11) TMI 807
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....ivity of lacquering of hardware and locks amounts to manufacture for the purpose of U.P. Trade Tax Act, 1948? (ii) Whether, the finding recorded by the Tribunal that the assessee had engaged in lacquering activity, on its own account, is based on any material and evidence?" 3. In brief, the assessee is a trader in hardware and locks. The assessee had been purchasing hardware and locks from unregistered dealers. According to the assessee, during the assessment year in question, the assessee purchased the hardware and locks from unregistered dealers after approving their quality at its own business premises. Upon such approval being made, the goods were first lacquered and polished by the sellers admittedly at its place of busines....
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....ted in 1989 (3) SCC 127. It was a case where the Supreme Court considering the provisions of Section 14(iv)(xi) of the Central Sales Tax Act, 1966 with respect to dispute that had arisen during the A.Ys. 1982-83 and 1983-84. It was held galvanization of iron pipes and tubes did not bring into the existence any new commodity - different from steel tubes. It has thus been submitted that lacquering is a process similar to galvanization that had been considered by the Supreme Court. Therefore, it can never be said that new or different commodity had come into existence upon successful process of lacquering. 7. Learned Standing Counsel on the other hand submits that the decision of the Supreme Court referred to above is no longer relevant ....
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....#39;manufacture' noted above and after making the decision analysis of the existing precedent concluded as below: "22. We may mention that, as noted above, decisions construing the word "manufacture" in other statutes are not necessarily applicable when interpreting Section 2 (e-1) of the UP Trade Tax Act. As stated above, the definition of "manufacture" in Section 2 (e-1) of the UP Trade Tax Act is very wide, which includes processing, treating or adapting any goods. Hence, in our opinion, the expression "manufacture" covers within its sweep not only such activities which bring into existence a new commercial commodity different from the articles on which that activity was carried on, but also such activities which do....
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....s and it arises in a completely different statutory context. 10. The correct and the only test is to be applied that laid down by the Supreme Court in the case of Sonebhadra Fuels Vs. Commissioner of Trade Tax, U.P. (supra). Applying that test, even according to the assessee's own case, it has been stated, by under going the process of lacquering, the goods namely hardware and locks became differently marketable and in fact, it was assessee's own case that different quality of lacquering imparted different price to the same goods. In any case, as a process of treating or finishing the goods, lacquering by very nature, as discussed by the Tribunal would be covered by the term finishing and treating or otherwise processing the good....
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....sion drawn by the Tribunal that the assessee had admitted to have engaged in lacquering activity only because such activity had been conducted at the business premises of the assessee is wholly perverse. 14. Learned Standing Counsel on the other hand submits that a partner of the assessee's firm had himself admitted during the course of assessment that the assessee was engaged in the activity of lacquering and therefore the Tribunal had not erred in rejecting the defence set up by the assessee. 15. Having considered the arguments so advanced by learned counsel for the parties, I find that though the assessing authority had made an observation to the effect that the one of the partner of the assessee's firm had admitted to have....