TaxTMI 
TaxTMI 
2020 (1) TMI 196
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....titioner. Mrs. J. Padmavathi Devi, Special Government Pleader, for the Respondent. ORDER The core issue involved in these cases is that purchasing the minced tobacco in bulk quantity and repacking the same with added flavour in small packs involves manufacturing process or not. 2. As per Section 2(27) of the Tamil Nadu Value Added Tax Act, 2006, the term "manufacture" is defined as under ....
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....d sell it. The respondent has taxed them, on the ground that adding scent and making in small packs involves manufacturing process and the tobacco is converted from raw tobacco to chewing tobacco, which is a different commercial product and, therefore, they are liable for paying tax. 5. The Learned Counsel appearing for the petitioners would rely on the judgment of the Hon'ble Supreme Court ....
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....vation that manufacture implies a change, but every change is not manufacture and yet every change of an article is the result of treatment, labour and manipulation is apposite to the situation at hand. The process involved in the manufacture of sweetened betel nut pieces does not result in the manufacture of a new product as the end-product continues to retain its original character though in a m....
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....roduct or distinct commodity. 8. As held by the Hon'ble Supreme Court in the case of Crane Betel Nut Powder Works, adding scent or flavour did not result in a new and distinct product having a different character and use. Therefore, in the considered opinion of this Court, there is no manufacturing process involved in the activities of the petitioners. Therefore, the demand made by the respo....