TaxTMI 
TaxTMI 
2024 (8) TMI 589
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....bed by the Commissioner. 3. It has been submitted by learned counsel for revisionist that revisionist is under the U.P. G.S.T. Act and is engaged in manufacture of sugar by its unit at Balrampur, Uttar Pradesh. It is stated that for the purpose of manufacture of sugar, the sugarcane is purchased from the farmers which are brought by them to the cane purchase centre established within the reserved area or assigned area. From the cane purchase centres the sugarcane is transported by the revisionist industrial unit to the factory premises where it is crushed and ultimately results in manufacture of sugar and also other byproducts. 4. The controversy pertains to the purchase of diesel at concessional rate of tax as per Notification of the State Government dated 10.08.2017 where the concession could not be availed by the revisionist due to want of certificate of the Commissioner as prescribed therein. 5. The petitioner being aggrieved by non-issuance of the certificate by the Commissioner had invoked the provisions of Section 59 of U.P. Value Added Tax (VAT) Act and referred the dispute to the Commissioner stating that they were fully entitled and eligible for being granted permissio....
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....ction 8(3)(b) of Act, 1956 is "for use by him in manufacture or processing of goods for sale", which are relevant for the purpose of present case since other items mentioned therein are not admittedly attracted. The question would be whether the two activities, in respect whereto revenue has found assessee guilty of violation, the purpose, for use of which, diesel was allowed to be purchased against Form-C, is one authorised or not. 7. In order to understand, it would be appropriate first to examine as to what is the actual way in which assessee claim aforesaid two activities to constitute part of manufacture and processing of goods. 8. The assessee deals in manufacture and sale of sugar for which sugarcane is the basic raw material. The sugarcane is produced by individual farmers. Sugarcane constitutes basic raw material for the assessee for manufacturing sugar. However, supply and purchase of sugarcane from farmers is not free, inasmuch as, it is controlled by statute and in Uttar Pradesh, it is regulated by U.P.Sugarcane (Regulation of Supply & Purchase) Act, 1953 (hereinafter referred to as "Sugarcane Supply and Purchase Act, 1953"). 9. A sugar factory cannot purchase sug....
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....C 287 (SC) the Court said that definition of the word "manufacture" makes it clear that every activity in relation to goods not only alter the same but also processing the same has also been included. 13. The term "manufacture" includes any process or part of process for making, altering, ornamenting, finishing, taking, labelling or otherwise drawing or tapping with a view to sell or distribute in the context of a drug. The "manufacture" involves series of processes and includes any process incidental or ancillary to the completion of a manufactured product as held in Union of India Vs. Ahmedabad Electricity Co. Ltd., (2003) 11 SCC 129. 14. In the context of mining of ore, the Court in Chowgule & Co. Pvt. Ltd. and Anr. Vs. Union of India & Ors., AIR 1981 SC 1014 said: "Where a dealer is engaged both in mining operation as also in processing the mined ore for sale, the two processes being interdependent, it would be essential for carrying on the operation of processing that the ore should be carried from the mining site mined ore for sale, the two processes being inter-dependent, it would be essential for carrying on the operation of processing that the ore should be carried f....
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.... diesel purchased against Form-C if used for cane procurement from centres to factory, it would not amount to violation of purpose for which the said diesel was purchased. The question no.1, therefore, is answered accordingly." 11. According to the aforesaid judgment, undoubtedly, the transportation of sugarcane from the Cane Purchase Centre to the Factory Premises is included in the term 'manufacture' of sugar and the Tribunal has not correctly appreciated the controversy and has clearly erred in law. 12. It has further been submitted that the said judgment has become final and the State did not challenge the same before Hon'ble the Supreme Court 13. The second question which arises for consideration is with regard to the benefit obtained by the revisionist under the Notification dated 07.12.2019 which according to the State Advised Price, the revisionist was also given 42 paisa per quintal per kilometer to a limit of Rs. 8.35 p per quintal for transportation of the sugarcane from the Cane Purchase Centre to the Factory Premises. 14. In this regard, it has been submitted that the said amount as prescribed in the Notification dated 07.12.2019 pertains to transportat....