1. Dispute regarding whether crushing dolomite lumps into chips and powder constitutes a process of manufacture creating a new commercial commodity. (Para 1 )
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1998 Supreme(SC) 793
SUPREME COURT OF INDIA
S.P.Bharucha : V.N.Khare
Divisional Deputy Commissioner Of Sales Tax
Versus
Bherhaghat Mineral Industries
Case No. : 2287 of 1995
Date of Decision : 8/11/98
The crushing of dolomite lumps into chips and powder does not constitute a process of manufacture because it does not result in the creation of a new commercial commodity.
Headnote:(A) Sales Tax - Process of manufacture - Crushing of dolomite lumps into chips and powder - Whether such process brings about a new commercial commodity - Held, the crushing of dolomite lumps into chips and powder is not a process of manufacture that brings about a new commercial commodity. (Para 1)
Facts of the case:
The case involves a dispute regarding whether the process of crushing dolomite lumps into chips and powder constitutes a process of manufacture for the purpose of taxation.
Findings of Court:
The court upheld the view that the activity of crushing dolomite lumps into chips and powder does not result in the creation of a new commercial commodity.
Issues: Whether the crushing of dolomite lumps into chips and powder is a process of manufacture that brings about a new commercial commodity.
Ratio Decidendi: The court ruled that the mere crushing of dolomite lumps into chips and powder does not transform the material into a new commercial commodity, and therefore, it does not qualify as a process of manufacture.
Result: Appeal dismissed.
Act Referred
Legal Category Hierarchy
-
tax law
-
excise
- process of manufacture (Para 1)
-
excise
Table of Contents
2. Whether the crushing of dolomite lumps into chips and powder results in a new commercial commodity through a process of manufacture. (Para 1 )
3. The crushing of dolomite lumps into chips and powder does not constitute a process of manufacture that brings about a new commercial commodity. (Para 1 )
4. Crushing of mineral lumps into chips and powder is not a process of manufacture that creates a new commercial commodity. (Para 1 )
5. Appeal dismissed and High Court judgment upheld. (Para 1 )
6. Does the crushing of dolomite lumps into chips and powder constitute a process of manufacture?
No, the crushing of dolomite lumps into chips and powder is not considered a process of manufacture that brings about a new commercial commodity. (Para 1 )
JUDGMENT
S.P.BHARUCHA, J.
(1) WE have read the judgment and order of the High Court under appeal and we have heard learned counsel. We are satisfied that the crushing of dolomite lumps into chips and powder is not a process of manufacture that brings about a new commercial commodity. The view taken by the High Court must, therefore, be upheld. The appeal is dismissed. There shall be no order as to costs.
