TaxTMI 
TaxTMI 
2023 (5) TMI 648
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....by the orders dated 31.07.2017, 04.09.2018 and 16.02.2023 (Annexures-A/1, A/2 & A/3) respectively. 02. The facts of the case in short are as under:- 2.1. The appellant is a registered Firm engaged in the business of stone crushers for the manufacturing of Gitti. The appellant established the said unit by taking a loan from Gramin Bank under Khadi Evam Gram Udyog under the 'Pradhan Mantri Rojgar Srijan Yojna'. The appellant got a registration from the Department of Industry and also got an electricity connection of 100 KVA from MPKVVCL, Ratlam. The appellant is having the status of small-scale industry. According to the appellant, it crushes the boulders by applying a mechanical process into small grit (gitti), for which the ba....
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....this Court. 03. The appellant has proposed the following substantial questions of law involved in this appeal:- a. Whether the Ld. Madhya Pradesh Commercial Appellate Board committed grave error of law while disposing the second appeal preferred by the appellant U/s 46 of the M.P. VAT Act without considering the record of the assessment as well as record of the first appellate authority ? b. Whether the Ld. Madhya Pradesh Commercial Appellate Board committed grave error of law while interpreting section 14(1)(a) ? c. Whether the Ld. Madhya Pradesh Commercial Appellate Board committed grave error of law while not properly interpreting section 14(1AC) ? d. Whether the Ld. Madhya Pradesh Commercial Appell....
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....e or articles, as a result of some process, treatment, labor, and results in transformation into a new and different article so understood in commercial parlance having distinct name, character and use, but does not include such activity of manufacture as may be notified. In common parlance, grit is a hard coarse grained, siliceous sandstone, this term is especially applied to such sandstones that are quarried for building material. The stones do not cease to be stones merely by the reason of the fact that they have reduced in size by the process of crushing or breaking. The process of crushing, therefore, cannot be regarded as a process of manufacture as decided by the Hon'ble Bombay High Court in the case of CST vs Mahalaxmi Stores, o....
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....ption of goods for the purpose of bringing into existence new goods. In that case the Court was not concerned with an entry of the nature with which we are concerned in the present case. Where the dealer had brought into existence new commercial goods by consuming the boulders to bring out small pieces of stone, it was held that such activity attracted purchase tax. In the present case, however, stone, as such, and gitti and articles of stones are all of similar nature though by size they may be different. Even if gitti, kankar, stone ballast, etc. may all be looked upon as separate in commercial character from stone boulders offered for sale in the market, yet it cannot be presumed that Entry 40 of the notification is intended to describe ....