M/S. SONEBHADRA FUELS vs COMMNR, TARDE TAX

The Supreme Court upheld the decision of the Allahabad High Court, affirming that coal briquettes, produced from coal dust, constitute a different commercial commodity from coal and are thus subject to sales tax under the U.P. Trade Tax Act. The Court interpreted Section 2(e-1) of the U.P. Trade Tax Act, which defines 'manufacture' broadly, including processing and adapting goods, thereby establishing that the transformation of coal dust into briquettes qualifies as manufacturing. Consequently, the appeal for exemption from sales tax was dismissed.