RAJESH BALIA, J. - (1.) HEARD learned counsel for the parties. The short issue raised in this case is whether the by-product obtained on application of manufacturing process along with primarily product can be considered to be goods manufactured by the manufacturer within the meaning of Rajasthan Sales Tax Act, 1954. The question has arisen in the facts and circumstances that petitioner-dealer under the Rajasthan Sales Tax Act manufactures goods from iron sheets. He has established a new industrial unit and was issued eligibility certificate for availing the benefits under Rajasthan Sales Tax Incentive Scheme, 1987. In the course of manufacturing the end-product the assessee also obtained scrap as a by-product of his manufacturing activity. He sells such by-product obtained by him in the market. The assessing authority was of the view that a dealer is not envisaged to avail benefit of exemption under the Incentive Scheme in respect of sales of by-product. According to him it was not a goods manufactured by him. The Deputy Commissioner (Appeals) relying on the principle enunciated in Atlas Cycle Industries Ltd. v. State of Haryana [1972] 29 STC 730 (P&h) held that as a result of manufacturing activity if any by-product is obtained from such activity, it has to be treated as goods manufactured by the dealer and allowed the appeal by holding that scrap obtained from the manufacturing activity by the assessee is also a goods manufactured by him. He is entitled to avail benefit in respect of it under the Incentive Scheme. The Rajasthan Sales Tax Tribunal, Ajmer, vide its order dated July 24, 1995, which is under challenge, has allowed the appeal of the Revenue and restored the order made by the assessing authority.
(2.) I am of the opinion that the Tribunal was not right in taking the view that the by-product obtained by the assessee as a result of his manufacturing activity is not goods manufacture by him for the purpose of Incentive Scheme. Under the Incentive Scheme the term 'manufacture' has been defined independently. The scheme having promulgated in exercise of powers under section 4 (2) of the Rajasthan Sales Tax Act, the expressions used in the Incentive Scheme, are also governed by the definition clauses of the parent Act. Manufacturer has been defined under section 2 (k) of the Rajasthan Sales Tax Act, 1954. It cannot be doubted that activity which is carried on by any manufacturer is that of obtaining a particular goods as a principal manufacturing item. However in the process of manufacture a that article he obtains many things as a by-product which are incidentally obtained or can be termed as a adjunct of his manufacturing activity. None-theless such product is the result of process of producing goods and cannot be categorised differently unless otherwise intention appears to be in the statute. In my opinion no such different interpretation can he devised for the purpose of Incentive Scheme on the expression 'goods manufactured by the dealer' to exclude by-products from such category, unless any express provision is made to that effect. As a result this revision is allowed. The order of the Rajasthan Tax Tribunal under challenge is set aside and the order passed by the learned Deputy Commissioner (Appeals) is restored. No order as to costs. Petition allowed. .;