YASHWANT VARMA,J. - (1.) Heard Shri Piyush Agarwal, learned counsel for the revisionist and the learned standing counsel.
(2.) The sole issue which arises for consideration is whether the special smokless fuel which is obtained after treatment of coal would fall within the expression "manufacture" as defined under the U.P. Trade Tax 1948.
(3.) Dealing with a similar issue, this Court in M/s. Jai Maa Sharda Coke Briquettee Industries v. Commissioner of Trade Tax, U.P., Lucknow had an occasion to consider the ambit of the expression "manufacture" as used in the 1948 Act and had proceeded to observe thus: "This submission advanced by Shri Agrawal would commend acceptance in light of the expression 'manufacture' as defined under the 1948 Act. Admittedly the expression manufacture as defined under the Act, brings within its ambit various processes including the adaptation, treating and processing of goods. The Supreme Court in Sonebhadra Fuels v. Commr. Trade Tax [2006 (7) SCC 322] made the following pertinent observations in this respect:- "22. We may mention that, as noted above, decisions construing the word "manufacture" in other statutes are necessarily applicable when interpreting Section 2(e-1) of the U.P. Trade Tax Act. As stated above, the definition of "manufacture" in Section 2(e-1) of the U.P. Trade Tax Act is very wide, which includes processing, treating or adapting any goods. Hence, in our opinion, the expression "manufacture" covers within its sweep only such activities which bring into existence a new commercial commodity different from the articles on which that activity was carried on, but also such activities which do necessarily result in bringing into existence an article different from the articles on which such activity was carried on. For example, the activity of ornamenting of goods does result in manufacturing any goods which are commercially different from the goods which had been subjected to ornamentation, but yet it will amount to manufacture within the meaning of Section 2(e-1) of the U.P. Trade Tax Act since an artificial meaning of "manufacture" is given in Section 2(e-1). Hence, whether the commercial identity of the goods subjected to the processing, treating or adapting changes or not, is very material. 23. The method of making coal briquettes is as follows : "The raw material for coal briquettes is coal ground to generally below 2 mm size. The crushed coal is mixed with suitable binders and pressed in briquetting press out of which regular shape required briquettes may be carbonised in suitable carboniser. The size of coal (30-100 mm) required for manufacturing special smokeless fuel (SSF) is coal briquettes. No binder is required to be used for the production of SSF." 24. In our opinion, the process mentioned above is clearly processing, treating or adapting the coal. Hence, in our opinion, it is a "manufacture.";