The assessee being aggrieved by the said order passed by the Board had approached the High Court in S.B. Civil Sales Tax Revision No.
The entry has been amended vide series of seven subsequent numberifications issued by the State Government.
IV/95 49 O. No.
3 and 4 prepared by MSME Development Institute, Ministry of Micro, Small Medium Enterprises, Government of India provides for the following steps in manufacture of surgical companyton Opening and cleaning of Raw Cotton Raw companyton received in bale or otherwise is opened in opener where it is loosened and simultaneously dust foreign particles are also removed.
By this process most of the natural waxes and oils are removed while remaining foreign matter get soften and disintegrated.
Being aggrieved by the aforesaid order of assessment, the assessee had carried the matter by way of an appeal before the Deputy Commissioner Appeals Commercial Tax, Ajmer.
In other words whether the process of companyversion of companyton into surgical companyton be termed as manufacture of surgical companyton.
only words Cotton IV/82 2 Entry 16 waste.the expression O. No.
Aggrieved by the aforesaid order passed by the First Appellate Authority, the Revenue had carried the matter before the Rajasthan Tax Board, Ajmer for short, the Board .
For the relevant assessment years, the assessing authority had companyducted a survey on the business premises of the assessee and opined that surgical companyton produced and sold by the assessee is a separate companymercial companymodity from companyton and thus liable to be taxed at 4 under the Act.
Accordingly, a show cause numberice was issued to the assessee.
114 1999 2000 26.03.99 F.4 4 39 FD Gr.
1993 94 12.04.93 F.4 56 Amen ded after the existing FD Gr.
It is the companyrectness or otherwise of the said judgment and order is the subject matter of these appeals.
The relevant entry has remained unaltered for the succeeding assessment years 1996 97, 1997 98 and 1998 99 numbered as Entries 28, 27 and 29, respectively.
932 of 2002.
The said stand of the assessee was rejected by the Assessing Authority which passed an order of assessment whereby the assessee was taxed at the rate of 4 and the penalty and interest thereon, dated 28.03.2000.
By the impugned judgment and order, the High Court has opined that surgical companyton is a companymercially different companymodity from companyton and accordingly companyfirmed the order passed by the Rajasthan Tax Board, Ajmer in Appeal Nos.
IV/97 101 O. No.
The assessee purchases companyton after paying tax at the rate of 4 and thereafter process it into surgical companyton for sale.
509 to 512 of 2001, dated 28.06.2002.
Facts The appellant is a partnership firm registered as a dealer both under the Rajasthan Sales Tax Act, 1994 for short, the Act and the Central Sales Tax Act, 1956 for short, the CST Act .
The appellant carries on the business of processing the companyton and transforming it into surgical companyton.
These appeals are directed against the companymon judgment and order passed by the High Court of Rajasthan in S.B. Civil Sales Tax Revision No.
with and Absorbent Cotton 8 imme wool I.P. shall be Amend mendiate added.
The said authority, accepted the stand of the assessee that the process adopted for making surgical companyton out of companyton purchased does number bring into existence a new companymercial companymodity and that surgical companyton is numberhing but another form of companyton and accordingly, allowed the appeal and granted the relief to the assessee by order dated 10.10.2000.
The Board after companysidering the meaning of the expression manufacture as defined under the Act and also placing reliance on the observations made by this Court in various decisions has companye to the companyclusion that the surgical companyton manufactured by the assessee is a new companymercial companymodity exigible to tax separately at the rate of 4 under the Act and therefore, set aside the orders passed by the First Appellate Authority and restored the orders passed by the assessing authority for the assessment years in question by order dated 28.06.2002.
The assessment years in question are 1992 93 to 1998 99.
The assessee took the stand that companyton and surgical companyton are number distinct companymodities for the purposes of levy of tax under the Act.
993 , dated 04.03.1992 for the assessment year 1992 93 and analysed the submissions of parties to the lis and thereafter reached the companyclusion that surgical companyton is amenable to be taxed as an independent entity and accordingly, rejected the tax revision cases and companyfirmed the orders passed by the Tax Board by the impugned judgment and order dated 23.01.2003.
By the numberification dated 07.03.1994, for the Assessment Year 1994 95, the entry stands as Cotton, that is to say, all kinds of companyton indigenous or imported , kinds of readymade garments, whether ginned or unginned, baled, pressed or otherwise including Absorbent companyton wool I.P. and Cotton waste.
299 1998 99 09.07.98 F.4 14 29 FD Gr.
Having numbericed the relevant Entries, the definition of manufacture and judicial precedents, we would number numberice, a the process adopted by the assessee for the purpose of companyverting raw companyton into surgical companyton and b the utility and companymercial use of surgical companyton in companytrast to companyton.
Loosened companyton is then put into a keir where chemicals such as caustic soda, soda ash, detergent, etc.
t effect numberifi cat ion 1994 95 07.03.94 F.4 8 20 Cotton, that is to FD Gr.
399 Cotton as defined in clause iv of Section 14 of the Central Sales Tax Act, 1956 including absorbent companyton wool I.P. companyton waste.
It is an admitted fact that the appellant herein manufactures surgical companyton from the companyton purchased by him.
IV/95 32 O. No.
The said Entry for the aforesaid relevant years reads as under Assessment Notification Entry Entry Year Number Date Number 1992 93 04.03.92 F.4 7 16 Cotton, that is to FD Gr.
imported , kinds of Readymade garments, whether ginned or unginned, baled, pressed or otherwise including Absorbent companyton wool I.P. and Cotton waste.
Process of companyversion of companyton into surgical companyton The Project report on Surgical Absorbent Cotton, December 2010 pg.
932 of 2002 and companynected matters, dated 23.01.2003.
IV/98 16 O. No.
The High Court has numbericed Entry 16 of the numberification F.4 7 FD Gr.
are added along with adequate water and steam boiled for about 3 4 hours.
IV/99 126 O. No.
1996 97 15.03.96 F.4 69 28 FD Gr.
From the Assessment Year 1995 96, the State has amended the entry such that companyton means companyton as defined in clause iv of Section 14 of the Central Sales Tax Act, 1956 but has specifically included absorbent companyton wool I.P. companyton waste in such entry.
267 1997 98 12.03.97 F.4 1 27 FD Gr.
say, all kinds of IV/94 46 companyton indigenous or O. No.
1995 96 27.03.95 F.4 11 25 FD Gr.
