Tea Blending Not Manufacturing under UP Trade Tax Act: SC

Commissioner of Trade Tax Vs Mishra Tea Blending And Packing Industries (Supreme Court of India)

Introduction: In a significant ruling, the Supreme Court of India delivered a judgment in the case of Commissioner of Trade Tax vs. Mishra Tea Blending and Packing Industries. The court addressed the definition of ‘manufacture’ under Section 2(e)(1) of the UP Trade Tax Act, emphasizing that blending and packaging tea does not fall within its ambit. This comprehensive analysis explores the legal proceedings, arguments, and the court’s reasoning.

Detailed Analysis:

1. Background of the Case: The Revenue, represented by the Commissioner of Trade Tax, UP, challenged orders passed by the High Court in Trade Tax Revision Nos. 1351/2004 and 2989/2004. The key questions revolved around whether blending and packing of tea could be considered manufacturing under the UP Trade Tax Act.

2. Contentions of the Revenue: The Revenue contended that blending different teas resulted in a new commodity, qualifying as a manufacturing process. Referring to legal precedents, they argued that the High Court’s approach was erroneous.

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