- (1.) Heard the learned Counsel appearing for the parties.
(2.) Counsel appearing for the parties have taken us through the judgment and order of the Tribunal. The Tribunal in its impugned judgment and order dated 27-6-2007 has given a finding that the soft cotton waste in question is a reject and residue arising in the processes and it is an amalgam of waste material as well as short fibres.
(3.) Learned Counsel appearing for the Appellant has submitted that the Tribunal held the issue arising for consideration in favour of the Assessee and against the Appellant herein. However, while doing so, the issue with regard to limitation which was raised by the Respondent herein was not decided as the Tribunal went into the merits and decided in favour of the Respondents. But the counsel for the Appellant has drawn our attention to the decision of this Court in Commissioner of Sales Tax, Bombay v. Bharat Petroleum Corpn. Ltd., 1995 77 ELT 790 wherein it was held by this Court as follows: ....other point is whether the Assessee can be said to manufacture "acid sludge" and "cotton waste" respectively. It is suggested for the State that the Assessees are purchasing acid and cotton for the manufacture of kerosene and yarn/cloth respectively and it is ludicrous to suggest that the Assessees are purchasing sulphuric acid and cotton for manufacturing acid sludge and cotton waste. Put like that the Assessee's contention seems a little artificial. But the contention is not really absurd. For, the Assessees do purchase sulphuric acid and cotton for use in a manufacturing process which yields not only kerosene and yarn/cloth but also acid sludge and cotton waste. As pointed out in State of Gujarat v. Raipur Manufacturing Co. Ltd., 1967 19 STC 1, where a subsidiary product is turned out regularly and continuously in the course of a manufacturing business and is also sold regularly from time to time, an intention can be attributed to the manufacturer to manufacture and sell not merely the main item manufactured but also the subsidiary products;