ASSISTANT COMMERCIAL TAXES OFFICER Vs. HEMENDRA INDUSTRIES

JUDGEMENT

(1.) THIS revision petition under section 86 of the Rajasthan Sales Tax Act, 1994 is directed against the order dated January 25, 2003 of the Rajasthan Tax Board dismissing the Revenue appeal and holding that if the part of manufacturing process of polishing of slabs and tiles of granite is undertaken by the assessee-unit outside the factory premises on job basis from some other industrial unit then, it cannot be said that the assessee unit is not entitled to the benefit of the exemption from the sales tax under the Incentive Scheme, 1987. Learned assessing authority found for the year in question 1990-91 that in the job charges account, the assessee had spent a sum of Rs. 43,100 as payment towards job charges paid to the other industrial units which constituted 6. 6 per cent of the value of the total production of the industrial unit and 23. 37 per cent of the total cost of raw materials used by the assessee in question. According to the assessing authority, the industrial unit was not entitled to avail the benefit of exemption in respect of the goods so manufactured by it because if the part of process for manufacturing of such granite tiles took place outside the factory premises, it disentitle the industrial unit from availing the benefit of exemption under the Incentive Scheme in respect of such goods manufactured by it.

(2.) LEARNED counsel for the Revenue submits that in view of such part of process undertaken by the assessee unit outside the factory premises, the goods or granite tiles so manufactured cannot be construed to be goods manufactured by the industrial unit. The first appeal of the assessee was allowed by the learned Deputy Commissioner (Appeals) and the second appeal before the Tax Board also failed and thus both the authorities concurrently found that despite such part of manufacturing process taking place outside the factory premises of the unit in question, the assessee unit could not be disentitled from availing the benefit of Incentive Scheme, 1987.