2023 (3) TMI 943

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....Adv. JUDGMENT S. RAVINDRA BHAT, J. 1. The question which is urged in all these appeals is the correctness of the view of the High Court that the process which the product in the present case underwent - i.e., mixture of the base paint with different colours - did not result in a 'new' product, and therefore did not result from the process of 'manufacture' as defined under Section 2(e)(i) of the U.P. Trade Tax Act, 1948 ("Act"). 2. The facts in all these cases are that the assessees are dealers in inter alia paints. The Revenue contended that the sale of paints which had undergone mixing (through a computerised process with the aid of a DTS machine) amounted to 'manufacture', thereby resulting in a new product, which was a fre....

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....CC 322. Therefore, the High Court allowed the revisions filed before it. 5. The Revenue urged that the findings in the impugned order are erroneous, and relied upon Sonebhadra Fuels (supra) to argue that the High Court was bound by this Court's decision since it was directly on an interpretation of the expression 'manufacture' in the same enactment. In Sonebhadra Fuels, the court had considered whether coal briquettes fell with the generic description of 'coal'. This court held that the process involved mixing crushed coal with suitable binders pressed in briquetting press, from which regular shaped briquettes were suitably carbonised. This process was held to amount to 'manufacture'. 6. The definition of 'manufacture' under the Act i....