RAJESH BALIA, J. - (1.) THIS case relates to the claim made by the respondent-assessee for sanctioning the incentives for its new unit under the provisions of the Rajasthan Sales Tax Incentive Scheme for Industries, 1987 (for short, "the Scheme of 1987" ). At the first instance, incentives were sanctioned for the new unit of the respondent-assessee by the District Level Screening Committee in its meeting held on August 29, 1996 and December 20, 1996. However, the Commercial Taxes Officer, Circle D, Alwar by his application dated July 1, 1997 requested for reconsideration of the grant of sanction in favour of the respondent-assessee. That application for review was allowed by the District Level Screening Committee holding that since the assessee-company is engaged in the processing of hydrogen gas, the processing of hydrogen gas does not fall in the manufacturing activity and, therefore, the benefit of the Scheme of 1987 cannot be granted to the respondent-assessee. The aforesaid conclusion was arrived at on the basis of the decision taken in M/s. Nipon Gas and Chemicals Private Limited wherein it has been held that hydrogen gas units are not included in the lists of eligible industries under Scheme "b" of the scheme of 1987. In that view of the matter, the benefit granted to the new unit of the respondent-assessee was withdrawn. The Scheme of 1987 has been issued under section 4 of the Rajasthan Sales Tax Act, 1954. It nowhere defines the word "manufacture" independent to the parent Act. The term "manufacture" has been defined in section 4r of the Rajasthan Sales Tax Act, 1954, which specifically provides that "manufacture" includes any process or manner of producing, collecting, extractions, preparing or making any goods; but does not include such manufactures or manufacturing processes as may be notified by the State Government. Thus, it is apparent that the definition of "manufacture" under the Rajasthan Sales Tax Act, 1954 is wide enough to cover any process which results in preparing or even collecting of the goods or making of goods. It is not the case that the activity with which we are concerned, has been excluded as a "manufacturing process" by any notification, as envisaged under section 2 (k) of the Act. The process employed by the assessee does not take it out from the purview of manufacture within the meaning of the term "manufacture" used in the Scheme of 1987 which has to take its colour from the parent Act under which it has been issued.
(2.) MOREOVER, it cannot be doubted that the process which has been taken notice by the District Level Screening Committee and which has been referred to in the order passed by the Rajasthan Tax Board while setting aside the order of the District Level Screening Committee, goes to show that the commodity which is produced by the manufacturing process does not remain the same marketable commodity in commercial parlance. The process which is being used by the dealer is removing the moisture from the raw hydrogen gas purchased by it; to compress it up to 150 kgs; to purify it by di-oxide system and then it is dried for the purpose of making it marketable. The issue involved in this case is squarely governed by the principle enunciated by this Court in Devarsa Gas Chem Private Ltd. v. Rajasthan Taxation Tribunal (2001) 25 Tax World 234, wherein the court referring to the decision of the apex Court in Union of India v. Delhi Cloth & General Mills Co. Ltd. AIR 1963 SC 791 held that the process which is necessary to bring the goods at the stage of marketability must be held to be a manufacturing activity. It was further held that to become goods an article must be something which can ordinarily come to the market to be bought and sold. Applying the above test to the facts of the present case, it cannot be denied that the process employed by the dealer falls within the manufacturing activity. In this view of the matter, the refusal of sanction of incentives to the unit of the respondent-assessee by the District Level Screening Committee cannot be sustained. In this view of the matter, this revision fails and is hereby dismissed. Petition dismissed. .;