M/S. Jhunjhunwala & Ors vs State Of U.P. & Ors

The Supreme Court upheld the Allahabad High Court's ruling that the appellants were liable to pay trade tax as 'manufacturers' under Section 2(ee) of the Uttar Pradesh Trade Tax Act, 1948. The Court found that the definition of 'Manufacturer' was broad enough to include the appellants, who were engaged in selling timber grown by agriculturists. The validity of the circular issued by the Commissioner of Trade Tax was also affirmed, establishing that tax liability could arise from the combined interpretation of Sections 2(ee) and 3-AAAA of the Act.