Law: Sales Tax Act, 1990

Section: 2(16),2(16)(b)(c),33(1),34,7(1)

Law: Central Excise Act, (I of 1944)

Section: 2(13)

(a) Sales Tax Act (VII of 1990)---S. 2(16) Central Excises Act (1 of 1944), S. 2(13) Manufacture -Tobacco Re drying process of curing process of harvested crop of un¬manufactured tobacco Harvested tobacco, cured tobacco and re dried tobacco are all covered by the terminology of "un manufactured tobacco" of H.S. Code 24.01 Although, terms "un manufactured tobacco" and "re dried tobacco" are not defined in the Sales Tax Act, 1990, S.2(13) of the Central Excises Act, 1944 defined that "curing includes wilting, drying, fermenting and any process of rendering an un-manufactured tobacco fit for marketing or manufacture" which shows that cured tobacco is still an un manufactured tobacco 'and not a manufactured tobacco. 2002 PTD 776; Union of India v. Delhi Cloth and General Mills AIR 1963 SC 791 and Bholanath Sreemany v. Addl. C.C.T. (1978) 42 STC 430 SC ref. (b) Sales Tax Act (VII of 1990) S. 2(16) Manufacture or produce Tobacco Harvested tobacco, cured tobacco, cut tobacco, stemmed tobacco, dried tobacco and re dried tobacco were neither converted into any other distinct article nor were changed; transformed or reshaped to make it capable of being put to use differently and distinctly Tobacco, whether harvested, cured, cut, dryed or re dried, remains an unmanufactured tobacco and the process carried out was for preservation of the tobacco, for preservation of its aroma, for ease of packing, to prevent moulding or drying and the reshaping (cutting, stemming, stripping, packaging, casing) was not for putting it to use any differently All these processes were incidental or ancillary to prepare (not manufacture) the un manufactured tobacco fit for being manufactured into a manufactured tobacco or a,, smoking tobacco like cigarettes, cigar, cigarillos, cheroots, or smoking tobacco ¬Unless the un manufactured tobacco commences the stage of conversion into a smoking tobacco (or manufactured tobacco), it. could not be called a transformation, conversion or change to alter its character as an un-manufactured tobacco Neither any new article or new product was obtained by the processes of curing/re drying nor was the unmanu¬factured tobacco converted into a manufactured…

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