COLLECTOR OF CENTRAL EXCISE JAIPUR vs. ASSOCIATED STONE INDUSTRIES

C.A. No.-001355-001355 - 1994Supreme Court17 September 199110 pages
For Petitioner: B. KRISHNA PRASADFor Respondent: RAJAN NARAIN
AI SummaryAllowed

What did the Supreme Court hold?

The Supreme Court held that any operation integrally connected with the manufacturing process, even if it doesn't directly change the raw material, is considered a process in relation to manufacture. If power is used in such an operation, the exemption under the notification is not available.

What were the facts?

The Revenue denied exemption under a notification to manufacturers of crude sodium sulphate and lime. This was because they used power to pump brine into salt pans or lift raw materials to kilns, which the Revenue considered a process in relation to manufacture. The Tribunal had initially ruled in favour of the assessees.

What were the issues?

Whether the use of power for preliminary operations like pumping raw materials or lifting them to the manufacturing stage constitutes a 'process in or in relation to manufacture' for the purpose of an exemption notification.

Which sections of the Income-tax Act were involved?

Section 2(f)

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Cases cited in this judgment(2)Show list

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http://JUDIS.NIC.IN SUPREME COURT OF INDIA PETITIONER: COLLECTOR OF CENTRAL EXCISE, JAIPUR ETC. ETC.

Vs. RESPONDENT: RAJASTHAN STATE CHEMICAL WORKS DEEDWANA, RAJASTHAN ETC. ETC. DATE OF JUDGMENT17/09/1991 BENCH: FATHIMA BEEVI, M. (J) BENCH: FATHIMA BEEVI, M. (J) RANGNATHAN, S. OJHA, N.D. (J) CITATION: 1991 AIR 2222 1991 SCR Supl. (1) 124 1991 SCC (4) 473 JT 1991 (4) 6 1991 SCALE (2)602 ACT: Central Excises and Salt Act, 1944: Section 2(f), Item No. 68 of First Schedule--Notification No. 179/77, CE dated 18.6.1977--Exemption in relation to manufacture of which no process is carried on with the aid of power--Assessees using power to lift raw materials--Whether fails within ’process of manufacture’-- Exemption--Whether available.

Words & Phrases: "Manufacturing Process"- Meaning of. HEADNOTE: By way of notification dated 18.6.1977, the Central Government exempted from duty all goods falling under Tariff item No. 68 of the First Schedule to the Central Excises and Salt Act, 1944 in or in relation to manufacture of which no process was ordinarily carried on with the aid of power.

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