This revision has been filed under section 11 of the U. P. Trade Tax Act, 1948 (hereinafter called "the Act") against the judgment and order dated March 16, 2004 of the five-member Bench of the U. P. Trade Tax Tribunal (hereinafter called "the Tribunal"), given in Second Appeal No. 547 of 2001 for the assessment year 1998-99 wherein it has been held that "coal briquettes" prepared from coal dust, on which the sales tax has already been paid, is a different commercial commodity being prepared through process of manufacturing. Therefore, the revisionist/appellant being a manufacturer thereof, was liable to pay tax.

The facts and circumstances giving rise to this revision are that the assessee carries on business in coal and also manufactures the briquettes, popularly known as coal tiklis. The tiklis are prepared by moulding coal dust with clay or molasses. The assessee had applied for exemption/rebate of sales tax claiming that the coal briquettes are the same commodity as coal and it has already been subjected to tax. However, its claim was rejected by the assessing authority vide assessment order dated March 31, 1999 (annexure 1 ). Being aggrieved, the revisionist/assessee preferred the appeal which was dismissed vide order dated July 19, 2001 (annexure 2) by the appellate authority. The assessee further preferred the second appeal before the Tribunal, wherein the matter was referred to the Larger Bench, i. e. , the five-member Bench, which has been decided against the assessee vide impugned order dated March 16, 2004 (annexure 4 ). Hence this revision.

Heard Shri C. L. Pandey, learned counsel for the revisionist and Shri S. M. A. Kazmi, learned Chief Standing Counsel with Shri S. P. Kesarwani, Advocate for the Revenue.

It has been submitted by Shri Pandey that the assessee cannot be fastened with the liability of tax for the reason that the coal-briquettes is the same as the coal, though produced by moulding coal dust with multani mitti/molasses in coal coke form, certainly using certain machines. Notification No. ST-II-5782, dated September 7, 1981, issued under section 3-A of the Act provided that coal included coke in all its forms, but excluded charcoal. The said Notification was subsequently amended vide Notification No. ST- II-3685 dated July 31, 1986 providing that "coal includes coke in all its form, but excludes charcoal", and in both these Notifications, rate of tax has been at 4 per cent. Subsequently, Notification No. TIF-II-2372 dated November 23, 1998 was issued under section 3-A of the Act which also provides "coal, including coke, in all its forms, but excludes charcoal" and provided for levy of tax at 4 per cent. Coal is a declared commodity under section 14 of the Central Sales Tax Act, 1956 (hereinafter called "the Act, 1956") and the entry given in clause (ia) reads "coal including coke in all its forms, but excluding charcoal". Section 15 of the Act, 1956 provides that tax cannot be imposed on declared goods at more than one stage. As the coal dust has already been subjected to tax, the tiklis are not taxable. Thus, the assessment order and orders in appeal, are liable to be set aside.

On the contrary, Shri Kazmi, learned counsel for the Revenue, has submitted that the liability of tax under different notifications issued by the State from time to time, in exercise of the powers under section 3-A of the Act, 1948, is on sale of goods by the manufacturer or importer. The term "manufacture" has been defined under section 2 (e-1) of the Act in a very wide term which takes within its ambit even altering, processing, treating or adapting any goods. As in the instant case, tiklis come into existence by manufacturing process, even if it falls under the category of coal, it becomes taxable being a different commodity under the same entry. A person who comes to purchase the coal briquettes knows the commodity as a different commercial commodity from coke or coal, and purchases the same at a differ