2020 (1) TMI 196

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.... Shri A. Chandrasekaran, for the Petitioner. 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....

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.... sale basis, add some scent, repack it in small packs and 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 petitioner....

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.... v. United States 52 L. Ed. 336-338) become meaningful. The observation 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....

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....emains the same and it does not get changed to a different commercial product 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 t....