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material omissions amount to vital contradictions which can be established by crossexamination and confronting the witness with his previous statement to the police."The right of both accused and the prosecution is limited to contradictions." It was, thus, held that omission to make a statement in terms of Section 161 of the Code of Criminal Procedure would not attract the provisions of Section 145 of the Indian Evidence Act. However, by reason of Code of Criminal Procedure explanation has been inserted to Sub-Section (2) of Section 162 which is in the following terms: "An omission to state a fact or circumstance in the statement referred to in sub-section (1) may amount to contradiction if the same appears to be significant and otherwise relevant having regard to the context in which such omission occurs and whether any omission amounts to a contradiction in the particular context shall be a question of fact."

PETITIONER:
LAXMAN AND OTHERS

Vs.

RESPONDENT:
STATE OF MAHARASHTRA

DATE OF JUDGMENT28/11/1973

BENCH:
PALEKAR, D.G.
BENCH:
PALEKAR, D.G.
KRISHNAIYER, V.R.
SARKARIA, RANJIT SINGH

CITATION:
 1974 AIR  303  1974 SCC  (1) 309
 CITATOR INFO :
 D    1985 SC1156 (49,53)


ACT:
Evidence  Act, Section 145-Important omissions by a  witness
in  the previous statements regarding participation  of the
accused in  the crime--whether contradictions within the
meaning of the section-Law laid down in Tahsildar Singh and
another v.  State  of U.  P. A. I.  R.  1959 S.  C. 1012
explained-Impact of omissions on the probative value of the
witnesses' evidence.



HEADNOTE:
In the trial u/s 302 read with s. 34 I. P. C., one Sopan was
convicted  on  the  evidence of one  Sudam,  the  only eye-
witness.   Sudam  admitted  in his  cross-examination that
neither before the  Executive Magistrate  nor before the
Committing  Magistrate, he stated that Sopan had beaten the
deceased with Rumana and that he bad stated the fact for the
first time before the trial Magistrate. Sudam also admitted
that Sopan did nothing and was simply standing there.  Sudam
also  stated  that he could watch the incident for  a very
short time as he himself was threatened by the accused and,
therefore, ran away.  The F.I.R. and dying declarations also
did  not mention the part played by Sopan in  the  incident.
The trial Court acquitted all the accused but the High Court
convicted  them.   As  regards the  omissions in   Sudam's
evidence,  the High Court held, following Tahsildar's  case,
that  the  omissions  do not amount  to contradictions and
cannot be  proved  to show that  the  witness was.  making
improvements. The  High  Court,  therefore,  ignored the
omissions.
Allowing Sopan's appeal (but not of the other two accused),
HELD . (i) We do not think that s. 145 of the Evidence Act,
on  the very reasoning of Tahsildar Singh's case,  cited  by
the High Court, was intended to exclude from, evidence what
is relevant and admitted, and, therefore, a proved  omission
from   having its  due  effect  in   the   assessment  of
probabilities. S.  145  of Evidence Act  applies  only  to
'contradictions.'   If there  are  omissions  in   Previous
statements  which do not amount to contradictions but  throw
some  doubt  on the  veracity of  what  was  omitted, the
uncertainty or doubt may be capable of removal by  questions
in  reexamination.   There  were no such  questions  put  to
Sudam. Neither proof nor use of such omissions,  which  do
not  amount  to contradictions is barred by s. 145  of the
Evidence  Act. The error the High Court had  committed was
that  it  entirely  excluded very  important,  relevant and
material omissions, from duly proved previous statements  of
the  witness Sudam from consideration altogether  as  though
they were quite irrelevant and in-consequential. [51 OF]
It  is not possible to lay down a general rule as  to what
effect a particular omission from previous statement  should
have  on  the probative value of what was so  omitted  by  a
witness.    The effect will depend upon  the totality  of
proved facts and circumstances in which the omission  might
have  taken  place.   It will often  be determined  by the
importance  of what  was  omitted.   The  Law of  Evidence
contains  nothing more than s. 3 and s. 114 of the  Evidence
Act  to indicate and illustrate the standards and  methods
employed in assessing the evidence. [510H]
(ii)The High Court ought to have examined the evidence of
Sudam, the only eye-witness, in the light of  the  material
omissions and found out how much Sudam actually saw with his
own eyes and how much of what he said could be attributed to
his  conjecture, surmise or imagination.  Sopan is  entitled
to benefit of the doubt, which emerges on an examination  of
the  whole  evidence in the case about the precise  acts  of
participation by him. 1513D]



JUDGMENT:
CRIMINAL APPELLATE JURISDICTION : Criminal Appeal No. 122
of 1970.
Appeal by special leave from the judgment and order  dated
24/;  25th  September  1968  of the  Bombay  High  Court  in
Criminal Appeal 1731 of 1965.
506
M.   C. Bhandare and P. H. Parekh, for the appellants.
H.   R. Khanna and S. P. Nayar for the respondent.
The Judgment of the Court wag delivered by
BEG, J.-The three appellants Laxman (aged 30 at the time  of
trial). Sopan (aged 18 at the time of trial), and  Sakharam
(aged  40 years at the time of trial), residents of  village
Walana were acquitted of charges under section 302 read with
section 34 I.P.C. by the learned Sessions Judge of Parbhani.
The  trial court had declared the testimony of the only eye
witness,  Sudam Sakharam,  P.S.  17,  to  be  unworthy  of
credence.   Neither  the several dying declarations  of the
deceased  Narain Rao, in which he gave out the names of the
three  appellants  as  his assailants nor  other  facts and
circumstances, such  as the recovery on a pointing  out  by
Sopan  of  the "Rumna" said to  have been  used  for the
murderous  attack,  were  held by the trial  Court  to  be
sufficient  to corroborate the version of the  eye  witness.
On an appeal against the acquittal, a Division Bench of the
High  Court of Bombay had elaborately discussed each one  of
the  reasons  given  by the  learned  sessions judge for
discarding  the testimony of Sudam, corroborated  by  other
facts  and  circumstances, and found the  logic behind the
trial  court's reasoning to be unsound. The High Court had
also  criticised  the learned Session's Judge in  treating
certain omissions from the previous statements of Sudam  as
damaging   contradictions   without   complying  with the
provisions of section 145 of Evidence Act.  It had relied on
Tahsildar Singh and anr. v. State of U.P.,(1) to support its
views  on the requirements of s. 145 of Evidence  Act. The
High  Court set aside the acquittal of the three  appellants
and convicted them under section 302 I. P.C. read with s. 34
IPC and sentenced them to imprisonment. for life.
in  the appeal by special leave, now before us, the  learned
counsel for the appellants has criticised the approach  of
the  High  Court,  its findings  on  individual  items  of
evidence,  and its view that the  omissions  from  previous
statements of the alleged eye witness Sudam could not affect
his credibility.  After having examined the judgments of the
trial  court  and  the High Court  and relevant  pieces  of
evidence in the case, and listening to the arguments of the
learned counsel for the appellants, who said all that  could
be urged to support this appeal, and learned counsel for the
respondent  State,  we think that the  appreciation  of the
evidence by the High Court was undoubtedly far superior and
that  interference  with  the  trial  Court's  judgment  of
acquittal  was justified.  Nevertheless, we find that  there
is  an aspect of the case relating to Sopan, who  was  a
student aged  about  18 years at the time  of the  alleged
offence, which has not been given due importance by the High
Court  so  as to determine whether this appellant  was en-
titled, as  we think he is, to the  benefit  of  doubt  as
regards his alleged participation in the actual  commission
of an offence.
(1)  AIR 1959 S.C. 1012.
507
The account of the occurrence given by Sudam, P.W. 17 may be
summarised as follows:--
The  witness, who knew, Narainrao, Sarpanch of Walana, had
been   engaged by  the Sarpanch  to  assist  him  in the
supervising  the  construction of a road under a  contract.
The Sarpanch got a commission and the witness got Rs. 3 per
day.   He left Walana with the Sarpanch at 8 . 00  A.M. for
village Mannas Pimpri to pay the wages of the labourers  on
30th  April, 1966, which was a Saturday.  Wages used  to  be
paid on Saturdays.  Laxman, appellant, met and followed them
on  the way saying that he too had to go to  Mannas  Pimpri.
As  the party reached Mahboob's field, Laxman lifted and
tucked in his Dhoti like a wrestler.  Then, Laxman  suddenly
caught hold of Narayan's right leg, and, putting  his left
hand  on  his  back, felled Narainrao  on  the ground face
downwards.   Narainrao's hands were under his body.   Laxman
caught and then sat on Narainrao's neck.  Narainrao raised a
hue and cry. When the witness tried to restrain Laxman and
caught his hand, hewas warned that he would be killed if he
interfered.  Just then, thewitness    saw    Sopan    and
Sakharam,  brother  and wards them. Sakharam  carried  a
'Ramna'.   The witness let go the hand of  Laxman.   While
Laxman sat  on the neck of Narainrao and pressed  it  down,
Sakharam  rained  blows with the 'Ramna'  on  the  back  of
Narainrao.  Sopan stood watching nearby- After Sakharam had
finished  beating Narainrao, Sopan took the same  Ramna and
started beating  him while Narain shouted :  'I  am  dead'.
Finally, Laxman took a big stone and threw it on the neck of
Narainrao.   As Laxman saw the  witness  watching  from  a
distance,  while escaping he said : "Catch this Mang". The
witness ran towards Walana.  He met, Bhika Kotwal of  Walana
on the way and informed him that Narainrao was being  beaten
by the' three accused. At Walana, he informed Abhiman, the
brother of  Narainrao, that the accused  were beating  up
Narainrao.   He then went to his sister's house  and  drank
some  water.   He  was about to go back  to  the  scene  of
occurrence when Laxman and Sopan came there.  Laxman said  :
'Take care Mang I If you testify in favour of the  Sarpanch,
you  would  be murdered'.  The witness was,  however, not
deterred  from going back to the scene of  occurrence  where
other villagers had. collected.
Attempts  were made by cross-examination to  discredit the
testimony of this witness.  Firstly, it was suggested to him
that two chits (Ex. 31 and 32), showing that the witness was
demanding Rs. 30/to spoil the prosecution case, were sent by
him.   But, as the High Court had rightly pointed  out, the
connection of this witness with writing on these chits could
not be established.  The trial Court had obviously erred  in
using  these chits to doubt the credibility of the  witness.
Secondly, it was urged that this witness had denied his con-
viction for an offence under s. 12 of the Gambling Act. The
learned Sessions  Judge had, in our opinion,  attached too
much  importance  to this denial. , The High Court,  on the
other hand, had examined the certified copy of the  criminal
case register (Ex. 42) filed to contradict the statement  of
this witness denying a conviction and had
508
held that, although one Sudam Sakharam of Bahar Jahagir was
shown to be one of two accused persons mentioned in the copy
filed, yet, the entries in the relevant columns did not show
anything beyond a fine of Rs. 5/- on Laxman, the co-accused.
The High Court also held that the identity of the particular
Sudam Sakharam mentioned in this copy was not established as
that of Sudam P.W. 17 and that there could be other  persons
of  that  name in the village. The  High  Court  had also
adversely  commented on the fact that the copy was not of  a
document kept in proper form.  It had been only signed by  a
clerk. No judgment and order of the Court was filed. The
High  Court  doubted  the  bona fides of  the defence  in
producing  what it considered to be a suspicious  copy  to
contradict one of the statements of the witness.  Even if we
do not question the bona fides of the defence in finding it,
the technical defect of want of proof of the exact  identity
of  Sudam  mentioned in the copy was  certainly there.  We
agree with the High Court that the trial court had made too
much  out of this alleged contradiction in the testimony  of
Sudam. Thirdly, it was sought to be shown that  Sudam had
improved the account of the incident given by him at earlier
stages by introducing, in his statement at the trial, what
he  had not said earlier.  The High Court held that  these
omissions were not "contradictions".  Alternatively, it held
that,  even  if an  omission here  could  be  viewed  as  a
'contradiction, it  could  not be  used  at  all   without
complying with s. 145 of the Evidence Act.
In Tahsildar's case (supra) the majority view of this  Court
by Subba Rao, J., was (at p. 1023) :-
     "Contradict according to the Oxford Dictionary
     meant to affirm to the contrary. Section 145
     of  the Evidence Act indicates the  manner  in
     which  contradiction  is brought out. The
     cross-examining counsel shall put the part  or
     parts  of the  statement which affirms the
     contrary to what is stated in evidence. This
     indicates that there is something in  writing
     which  can  be set against  another  statement
     made in evidence. If the statement before the
     police officer in the sense we have  indicated
     and  the statement in the evidence before the
     Court  are so inconsistent  or  irreconcilable
     with  each other that both of them cannot co-
     exist, it may be said that one contradicts the
     other.
     It  is  broadly  contended  that a  statement
     includes all omissions which are material and
     are  such as a witness is expected to  say  in
     the  normal course.  This contention  ignores
     the  intention of legislature expressed in  s.
     162  of  the Code and the nature of  the non-
     evidentiary value of such a statement,  except
     for  the limited purpose  of  contradiction.
     Unrecorded  statement is completely  excluded.
     But  recorded  one  is used  for a  specified
     purpose. The record of a statement,  however
     perfunctory,  is assumed to give a  sufficient
     guarantee to the correctness of the  statement
     made but if words not recorded are brought  in
     by some fiction, the objection of the  section
     would be defeated.
     509
     By  that process, if a part of a statement  is
     recorded, what was not stated could go in  on
     the sly in the name of contradiction,  whereas
     if the entire statement was riot recorded,  it
     would  be excluded.  By doing so, we would  be
     circumventing the section by ignoring the only
     safeguard imposed by the legislature,  viz.,
     that the statement should have been recorded".
     In the case before us we find that no question
     was  put at  all to  Sudam,  in his  cross-
     examination,  about  what he  bad  stated  or
     omitted  to  state to the police during the
     course of investigation. Cross-examination of
     the  witness  bad, however,  brought  out two
     material omissions from statements before the
     Executive Magistrate and the Committing Court.
     The witness said :
     "I  have not  stated  before  the   Executive
     Magistrate,  nor before the  committing  court
     that  accused nos. 2 and 3 bad obstructed me,
     when  I took to my heels. Sepan (accused no.
     2)  had  beaten Narainrao with  Rumna,  after
     taking the same from accused no. 3. I have not
     stated therefore the Executive Magistrate that
     accused no. 2 bad beaten Narainrao with Rumna.
     I have  not  stated  before  the  committing
     Magistrate that the accused no. 2 (Sopan) bad
     beaten  Narainrao.  I have stated before the
     Committing Magistrate that at the time of the
     incident, accused no. 2, did nothing  and  he
     was simply standing there".
     The High Court itself observed :
     "It is true that the witness had not made any
     statement before the  Committing  Magistrate
     regarding the part played by accused no. 2  in
     the  assault  on Narainrao but  that  may  be
     because he was not questioned on that point at
     that  time.   The same can be said  about the
     statement before the Executive Magistrate."
     It then went on to say
     "It  cannot, however, be said that be bad not
     made  any statement on the point before the
     Police.  As we will presently point out, it is
     not  possible to any that the witness had not
     made  any statement on the point before the
     Police, but, assuming for the present that  he
     bad  not made any such statement, it would  be
     only  an omission presumably due to  his not
     being questioned on the point.  That cannot be
     of any help to the defence to suggest that the
     witness was making intelligent improvements as
     assumed 'by the learned Judge.  The  omission,
     if  at all it is there, is not such  as  would
     amount to controdiction and cannot, therefore,
     be proved to show that the witness was  making
     improvements."
In so far as the High Court was presuming, from the  failure
of  the defence  to cross-examine  the witness  about any
assatement  before  the police,  that there  was  no such
omission in his statement before
M602SupCI/74
510
the  police,  the High Court was assuming the  existence  of
something which could not have been used by the prosecution
to corroborate its case even if it existed.  The High  Court
had  then, proceeding on the assumption that there was such
an  omission  from the statement of the witness before the
police, explained an assumed infirmity in it by holding that
this   constituted  neither  a contradiction  nor  was  it
inexplicable  by  a failure to question the witness  on the
point  during the investigation as though it was no part  of
the duty of the police to elicit or ascertain what part was
played by each accused in the occurrence before prosecuting
him.
If  we were to assume that the witness had revealed  to the
police the  part alleged by him at the trial to  have been
played by Sopan, it would make it all the more incumbent  on
the prosecution to bring out this part when the witness was
making his statement in his examination-in-chief before the
Magistrates.  The statements before the magistrates could be
used both to contradict and to corroborate.  The prosecution
had  performed its duty in questioning the witness, when  he
was  deposing at the trial, about the part played by  Sopan.
It should not have gone to sleep at earlier stages and then
tried  to fill up the possible gaps in the evidence on this
part of the case at the trial. If it does this, so that  an
important prosecution witness appears to be introducing new
allegations which are vital for determining the liability of
an accused, the new statements are bound to arouse suspicion
and doubt.
It  may not be out of place to mention here that  the 11th
Report of the Criminal Law Revision Committee in  England,
has  recommended the abrogation of several artificial  rules
of  evidence  which may result in the exclusion of  what  is
logically  relevant (See : Criminal Law Review, June,  1973,
p.  329).  So far as our law goes. we do not think  that  s.
145 of the Evidence Act, on the very reasoning of  Tahsildar
Singh's case (supra), cited by the High Court, was  intended
to exclude from evidence what is relevant and admitted, and,
therefore,  a proved omission from having its due effect  in
the assessment of probabilities.  Section 145, Evidence Act
applies only to 'contradictions'. if there are omissions  in
previous  statements which do not amount  to  contradictions
but  throw some doubt on the veracity of what  was  omitted,
the  uncertainty  or  doubt may be  capable  of removal  by
questions  in re-examination.  There were no such  questions
put  to Sudam in the case before us.  Neither proof nor use
of such omissions, which do not amount to contradictions, is
barred by Sec. 145.  Evidence Act.
is not possible to lay down a general rule as to what effect
a particular omission from a previous statement should have
on the probative value of what was so omitted by a  witness.
The effect will depend upon the totality of proved facts and
circumstances  in which the omission might have taken  place
It  will often be determined by the importance of wtiat was
omitted.  Oar enacted law of evidence contains nothing more
than sections 3 and 114 of the Evidence Act to indicate and
illustrate  the standards and methods employed in  assessing
the evidence.  The error the High Court had committed in
511
the  case  before  us was that it  entirely  excluded very
important,  relevant,  and  material  omissions,  from duty
proved previous  statements  of  the  witness Sudam from
consideration altogether   as though they were   quite
irrelevant and inconsequential.
Quite  apart  from the error of the High Court in  assuming
that a material omission from a previous statement, even  if
it is not to be treated strictly as a contradiction, must be
ignored in evaluating the testimony of the only eye  witness
on  so important a matter, for determining the liability  of
Sopan, we think that what Sudam P.W. 17 had omitted to state
before the  Magistrates  ought also  to  have been more
critically  examined  and tested by the High  Court  in the
light  of  probabilities  and the natural  course  of  human
conduct.    The  important   question which arose for
determination on facts and circumstances disclosed by  Sudam
himself was :
     How  much did Sudam actually see with his own
     eyes and how much of what he said could be not
     unreasonably    attributed   to conjecture,
     surmise, or imagination on his part?
     Before we discuss the evidence further, we may
     observe that Professor Munsterberg, in a book
     called  "On the Witness Stand" (p. 51),  cited
     by  Judge Jerome Frank in his  "Law  and the
     Modern  Mind" (see : 1949 ed. p. 106),  gives
     instances of experiments conducted by enacting
     sudden  unexpected preplanned episodes  before
     persons  who  were then asked to write  down,
     soon afterwards, what they had seen and heard.
     The astounding result was :
     "Words were put into the mouths of men who had
     been silent spectators during the whole  short
     episode; actions were attributed to the  chief
     participants of which not the slightest  trace
     existed; and   essential   parts   of the
     tragicomedy  were completely  eliminated from
     the memory of a number of witnesses".
Hence, the Professor concluded : "We never know whether  we
remember,   perceive, or  imagine". Witnesses   cannot,
therefore,  be branded as liars in toto and their  testimony
rejected  outright  even if parts of  their  statements are
demonstrably  incorrect or doubtful.  The astute  judge can
separate  the grains of acceptable truth from the  chaff  of
exaggerations and improbabilities which cannot be safely  or
prudently accepted and acted upon.  It is sound commonsense
to  refuse to apply mechanically, in assessing the worth  of
necessarily  imperfect human testimony, the maxim :  "falsus
in uno falsus in omnibus."
Reverting  to the evidence in the case, we find that  Sudam
was,  as  is quite natural, in a hurry to get  back  to the
village because, apart from the fear of the accused  (Laxman
had  actually threatened to kill him and the other  two had
also  been alleged by him to have attempted to prevent his
escape),  he had to inform the relations of  Narainrao soon
about  what he had seen.  And, he deposed that he told both
Bhika  Kotwal and Abhiman (P.W. 2) when he met them,. that
Narainrao  was "being" beaten, or,  in  other words, the
beating had not come
512
to  an end when he ran away from the scene  of occurrence.
Moreover,  he  was quite far when Sopan is alleged  by him,
apparently  for the first time it the-trial, to have  taken
his turn to beat the deceased with the Rumna.  Even the last
act attributed by him to Laxman who is said to have hurled a
big  stone at the neck of Narainrao lying on the ground,  is
not  corroborated by medical evidence, Moreover, it was not
possible for Sudam to have observed from a distance that the
stone hurled by Laxman actually hit Narain on his neck.  He
could have mistaken some act of Sopan, such as throwing away
of the Rumna, for an assault with it claimed by him to have
been seen from a distance as he turned his head back to see
whilst escaping.   We, therefore, conclude  that,  although
Sudam  was  there to witness how the attack  began,  he had
probably  drawn upon his imagination to some extent to give
the details of how it ended.
We  next turn to the several dying declarations put  forward
to corroborate the statement of Sudam. These show that the
three  appellants were present at the attack upon  Narainrao
and  were  thought  by Narainrao  to  have  participated  in
beating him. These dying declarations,  however,  do not
mention the particular part assigned by Sudam to  Sopan  in
his  deposition at the trial.  This is natural as  Narainrao
was  not in a position to see the actual assailant after  he
was  pinned down to the ground with his face  downwards and
Laxman sitting on his "neck". He could only guess who was
striking him on the back.
The  first dying declaration, made to Mahboob, P.W. 10, did
not  impress the High Court.  The second was made to  Piraji
P.W.  9,  the  third to Laxmanramji P.W. 2 and the  4th  to
Datarao P.W.  3, the Sarpanch of Mannas Pimpri.   The High
Court  had  rightly  observed  that  the  last three  dying
declarations  made  to villagers, who had assembled  at the
scene of occurrence before Narainrao died, could not be held
to be false as the medical evidence indicated that he  could
remain conscious for some time after the attack.  The more
important question for determination, therefore, was :
"To what extent do the dying declarations corporate Sudam?"
Neither the dying declarations nor the F.I.R. lodged at the
police station by Abhiman P.W. 12, the brother of Narainrao,
on  30-4-1966. at 12 30 p.m. disclose the parts  played  by
each  of the three accused.  The report sent by Abhiman  is
actually signed by Sudam P.W. 17.  It is true that, at that
time, it was not known that Narainrao would die.  But, both
Sudam  and Abhiman knew that a very severe beating had been
given  to Narainrao.  We think that it is unlikely that,  if
Sudam  had seen the details of the way in which the  beating
of  Narainrao  ended, no details of it whatsoever  would  be
given in the report sent by Abhiman to the police which was
signed by Sudam.  Thus, the proved omission of the last part
of  Sudam's  version  from the F.I.R. as well  as  from his
proved previous  statements before the Executive  and the
Committing Magistrates, combined with the unlikelihood that
he could either stay long enough at the scene to see how the
beating ended or
513
would  be  able to see this well enough when he turned his
head back while running away and his own admitted statements
to  other  witnesses throw that part of the story  in  which
Sopan appellant is said to have taken his turn in beating of
Narainrao in the region of reasonable doubt.
Sopan, appellant,  a young man, may  have  accompanied his
elder  brother, Laxman, and his cousin,  Sakharam,  out  of
curiosity.   He may have watched the beating. Sudam's own
statement before the committing magistrate quoted above, was
that  this  is all that Sopan did there, although  the High
Court thought fit to explain it away by believing that this
assertion was confined to the earlier stage of the  beating.
According  to  the  High Court's  finding,  Sopan  was only
standing  at least when Sakharam was giving the eating with
the 'Rumna'.  He must have accompanied his elder brother and
cousin back to the village.  Sopan may have even taken and
thrown the 'Rumna' or known where it was lying.   The fact
that he indicated the place from where it could be recovered
would  not be sufficient to establish his  participation  in
the incident beyond reasonable doubt.  Therefore, we are  of
the  opinion  that  Sopan, appellant,  is  entitled  to the
benefit of the doubt which emerges on an examination of the
whole  evidence in  the  case about  the  precise  acts  of
participation by him.  As regards Laxman and Sakharam  there
is  no room for doubt that they actually attacked  Narainrao
deceased as stated by Sudam.  The manner in which  Narainrao
was  said  to be beaten, corroborated by  medical  evidence,
makes it impossible for the beating to have been given by  a
single individual.  The participation of Laxman and  Saharam
in  the actual commission of the  offence  is,  therefore,
established  beyond  any  reasonable  doubt.   The   medical
evidence  also leaves no doubt that the  beating  was such
that,  in the ordinary course of nature, it would cause the
death of Narainrao.
We,  therefore, think that Laxman and Sakharam  appellants
have  been rightly convicted under section 302 read with  s.
34  I.P.C.  and sentenced to life imprisonment.  Hence,  we
dismiss the appeal of Laxman and Sakharam and affirm  their
convictions  and  sentences.  We allow the appeal  of  Sopan
appellant  and set aside his conviction and  sentence.  We
order  that Sopan be set at liberty forthwith unless  wanted
in some other connection.
S.B.W.     Appeal allowed in part.
514



Monday, September 5, 2016

Veer Chandra Singh Garhwali Marg. = We have adverted to the affidavit which has been filed on behalf of the Appellants during the course of the hearing and to the undertaking that the Appellants would by December 2018 restore the road in accordance with the terms of the approved layout plan. In other words, the closure of the road is not of a permanent nature but is of a temporary character to facilitate the completion of the work. Presently, it has been stated that Veer Chandra Singh Garhwali Marg has been excavated to a depth of 35 to 40 feet for facilitating the construction of basements which will be interconnected at points which would fall under the road. A temporary closure of ingress and egress has been necessitated to avoid any mishaps. That being the position, we see merit in the grievance of the Appellants that at this stage, the balance of convenience would lie in allowing the completion of the project. We accept the assurance furnished by the Appellants on affidavit and through the learned Attorney General in Court. The project for re-development having received the statutory approvals, it is necessary to facilitate the completion of the project on schedule. The statements which have been made on behalf of the Appellants in the further affidavit as well as the undertaking would adequately protect the concerns of the petitioners who had moved to the Delhi High Court. At the same time, we deem it appropriate and proper in the interests of justice to remit the proceedings to the High Court to consider whether any additional safeguards should be introduced so as to allay the genuine apprehensions of the petitioners before it. For that purpose, the proceedings shall stand remitted back to the High Court for the limited purpose of considering whether any such additional safeguards are required and if deemed necessary to provide for them. In the meantime, we clarify that in view of the statements made before this Court on affidavit by the Appellants and the undertaking before this Court as noted earlier the project for re- development shall proceed unhindered. However, we leave it to open to the High Court to impose suitable safeguards in pursuance of the present judgment, to allay the apprehensions of the original petitioners.

                                                                  REPORTABLE

        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                       CIVIL APPEAL No.  8747 OF 2016
                  [Arising out of SLP (C) No.23464 of 2016]

NATIONAL BUILDING CONSTRUCTION                                  …APPELLANTS
CORPORATION LTD & ORS.

                                   Versus



KHOSMENDIR SINGH GAHUNIA & ORS.                      …RESPONDENTS



                                    With

                       CIVIL APPEAL No.  8748 OF 2016
                  [Arising out of SLP (C) No.23912 of 2016]




                               J U D G M E N T



Dr D Y CHANDRACHUD, J

            Leave granted.

2     These Appeals by the National  Building  Construction  Corporation,  a
public sector enterprise, arise from a judgment and order of the Delhi  High
Court dated 7 April 2016.

3     Under the Master Plan of 2021, Delhi Development  Authority  issued  a
Zonal Development Plan for Zone (Division) -D on 27 July 1993,  under  which
Kidwai Nagar East was earmarked as a colony for re-development. Spread  over
an area of 86 acres, the colony comprised of 2331 housing  units  meant  for
employees of the Central Government.   Apart  from  residential  units,  the
colony had  three  schools  and  two  local  shopping  markets.  Within  its
precincts, there is a protected monument, called Darya  Khan’s  Tomb  on  an
area of about 2 acres.

4     The Master Plan took  effect  on  7  February  2007,  following  final
approval and a notification in the Gazette of India. Following the  approval
of the plan for re-development by the Union Cabinet on 12 October  2010  and
by the Cabinet Committee on Economic Affairs on 23 March 2012, a  Letter  of
Intent was issued to the Appellants who  were  nominated  as  the  executing
agency on 22 June 2012. The projected cost of re-development of  the  colony
is Rs. 5,300/- crores with a  stipulated  date  of  completion  of  December
2019. The project envisages  the  construction  of  4608  residential  units
(comprised of type II-VII residential units) for employees and  officers  of
the Union Government and office space for its agencies.

5     The petitioner submitted a  layout  plan  together  with  a  plan  for
             re-development, for sanction to the NDMC on 23  July  2012.  An
environment clearance was issued on 13 August 2012. On 18 October 2012,  the
Ministry of Urban Development handed over the land  to  the  Appellants  and
issued no objection certificate for re-development.   The  new  layout  plan
and plan of proposed structures was sanctioned by NDMC  on  13  March  2014.
The work of                  re-development has proceeded  upon  receipt  of
statutory clearances.

6     The bone of contention is a road by the name  of  Veer  Chandra  Singh
Garhwali Marg. The road traverses a distance of 680 meters  commencing  from
Aurobindo Marg to its terminal point at Darya Khan’s Tomb.

7     Writ Petitions were filed before the Delhi High  Court  under  Article
226 of the Constitution by  the  Residents’  Welfare  Association  of  South
Extension  Part-I,   and  by  associations  inter  alia   representing   the
residents of  Kotla Mubarakpur  and  Village  Pillanji,  among  others.  The
grievance in the Writ Petitions was that after re-development  commenced  in
September 2013, NBCC progressively encroached upon the public  road.  On  24
December 2015, the residents of South Extension,  Part-I,  Village  Pillanji
and Kotla Mubarakpur found that the road had been  completely  cordoned  off
and blocked. A sign board  was  put  up  stating  that  the  road  would  be
permanently closed on 10 January 2016. As a result of  the  closure  of  the
road, which according to the petitioners before the High Court is  a  public
road, access was  being  denied  from  Aurobindo  Marg  for  onward  journey
towards South Mehrauli or North Central Delhi  and  beyond.  The  action  of
NBCC of closing what is described as a public street within the  meaning  of
the NDMC Act 1994, was urged to be contrary  to  law;  the  grievance  being
that the residents of localities in the area had utilized  it  for  over  60
years to access Aurobindo Marg, INA  metro  station  and  market  and  other
public amenities.

8     A mandamus was sought inter alia to the  Appellants  to  maintain  the
road by the removal of encroachments made thereon. A  prohibitory  direction
was sought for restraining the Appellants from closing the road.

9     During the course of the hearing of  the  Writ  Petitions  before  the
High  Court,  the  Appellants  and  NDMC  filed  their  respective   counter
affidavits. The defense of  the  Appellants  was  that  Veer  Chandra  Singh
Garhwali Marg together with other roads and passages inside the  colony  are
internal roads and do not constitute a public street within the  meaning  of
Section 2 (39) of the  NDMC  Act,  1994.   The  case  which  the  Appellants
specifically pleaded in their counter affidavit was that in the layout  plan
which was sanctioned by NDMC, the road in question was not  reflected  as  a
road or passage and infact formed a portion of  a  new  building/tower.  The
Appellants relied upon the fact that on 1 October 2013, the  office  of  the
Superintending  Engineer  (Roads-II),  NDMC  had  issued  a   no   objection
certificate in respect  of  roads  and  pavements  before  the  project  was
approved. The Appellants contended that if the road was a public  street  as
alleged in the Writ Petition, the layout plan would not have  been  approved
by NDMC. In the following extract from the counter affidavit  filed  by  the
Appellants in the High Court it was stated specifically that  the  road  was
not shown as a road/passage in the new layout plan sanctioned by NDMC :

“The layout plan submitted with NDMC is a entirely new plan  which  contains
complete changes  of  buildings  layout,  internal  passages/road  etc.  the
existed internal road in question i.e. “Veer Chandra  Singh  Garhwali  Marg”
was not shown as road/passage in the new plan  and  it  is  portion  of  new
building/tower. The internal road/passages  were  therefore  altered/shifted
as per new layout plan, the new layout plan and internal  passages/roads  in
the layout plan and detailed plans were submitted by  respondent  No.  2  to
NDMC  for  approval  and  same  was  duly  approved/sanctioned  by  NDMC  on
19.3.2014 under Section 217  showing  building/Tower  thereon,  open  space,
park, school market, space for other public purpose, allotment of  site  for
street,   line    of    streets    etc.         (Id.    at    p-    120-121)
               (emphasis supplied)



On the other hand in the counter affidavit that was  filed  by  NDMC  before
the High Court, it was stated that while sanctioning the  layout  plan,  the
road had been retained  and  only  its  entry  and  exit  points  have  been
shifted. The counter affidavit contains the following statement :

“That in the Zonal Development Plan (Zone-D), a  30  mt.  wide  road  starts
from Aurobindo Marg upto surrounding  of  Darya  Khan’s  Tomb.  Accordingly,
answering Respondent sanctioned the layout plan wherein the  said  road  was
retained,  only  the  entry  and  exit  points  have  been  shifted  towards
Aurobindo  Marg  as  per  the  NOC   of   UTTIPEC   [Unified   Traffic   and
Transportation Infrastructure) (Plg. & Engg.) Centre].        (Id. at p-136-
137)              (emphasis supplied)





This is again reiterated in paragraph  7  of  the  counter  affidavit  which
reads as follows :

“7).  It is also wrong and denied that  the  said  road  is  closed  by  the
answering Respondent. It is further denied that the said  road  emanates  at
the Aurobindo Marg on one side and passes by the  Darya  Khan’s  Tomb,  east
Kidwai Nagar, New Delhi. It is further submitted that  answering  Respondent
sanctioned the layout plan wherein the said road  has  been  retained,  only
the entry and exit points have been shifted towards Aurobindo  Marg  as  per
the NOC of UTTIPEC [Unified Traffic and Transportation Infrastructure  (Plg.
& Engg.) Centre.]           (Id. at p-137)



10    In this background, what clearly emerged before  the  High  Court  was
the clear and categorically statement in the affidavit by NDMC that  in  the
layout plan which it had sanctioned, the road had been maintained.  Contrary
to this was the statement of the Appellants as the executing agency  of  the
project that the road is not shown as a road or passage in the new plan  and
that it was infact a portion of a new building tower.  In  this  background,
the Division Bench of the High Court while placing reliance on  the  counter
affidavit filed by NDMC held that it was not open to the Appellants to  shut
down the road, which was in existence  for  sixty  years,  for  an  unstated
duration as was  sought  to  be  done  without  the  issuance  of  a  proper
sanction.

11    NDMC was accordingly directed to take appropriate steps for  enforcing
the sanctioned layout plan for the  area  in  question  pertaining  to  Veer
Chandra Sigh Garhwali Marg and  to  take  all  necessary  and  consequential
steps in accordance with law.

 12   When the Appellants filed Special Leave Petitions  before  this  Court
seeking to challenge the judgment of the Delhi High Court,  they  reiterated
the position that the road had been shifted under the approved plan to  make
way for the construction of 3 towers comprising of a  ground  floor  and  14
floors with 3 basements.

13    During the course of the hearing, the learned Attorney  General  urged
that the road was being only temporarily closed to facilitate  the  work  of
construction.  Moreover,  it  was  submitted  that  save  and   except   for
realignment of the entry and exit points, the road would  be  retained.  The
hearing was adjourned to enable the Appellants to clarify this  position  in
a further affidavit. During the course of the hearing  a  further  affidavit
has been filed on behalf of  the  Appellants.  In  the  affidavit  filed  on
behalf of the Appellants by Shri Arun Kumar Sharma,  who  is  working  as  a
General Manger (Engineering) for the re-development  project,  reliance  has
been placed on the approved layout plan. It has been stated that  under  the
approved plan of 12 February 2014, the road has been realigned at its  entry
and exit points as indicated in the  plan.  Paragraph  3  of  the  affidavit
inter alia states as follows :

“3). The entry point from Point “A”  to Darya Khan’s Tomb will  have  to  be
closed for a  temporary  period  for  carrying  out  necessary  construction
activities of the  project  by  the  Petitioner.  After  completion  of  the
requisite construction activities, the petitioner shall  rebuild/re-lay  the
said   road   with   entry/exit   as   per   the   approved   layout   plan.
(Id. at p-1)



The statements in paragraphs 4 and 6 of the affidavit are material  for  the
purposes of the present controversy and read as follows :

“4). The petitioner respectfully submits that the petitioner is required  to
close the said road  at  this  stage,  at  least  till  December  2018,  for
undertaking major construction and related  activities  at  site,  including
the road (interconnecting basements  and  other  underground  services  viz.
sewerage  connection,  electricity  and  water).  The  stipulated  date   of
completion of the project is 30.11.2019. However, it shall be  the  endeavor
of the Petitioner to restore the road by the end of December 2018…

6). Currently, the Veer Chandra Singh Garhwali Marg  is  dug  up  on  either
side about 35-40  feet  in  depth  for  facilitating  construction  work  of
basements which will be interconnected at points which would fall under  the
said road. The use of this road which is currently being done by the  public
is fraught with danger. The ingress and  engress  of  the  public  including
commercial transporation needs to be stopped forthwith to avoid any  mishaps
and the said road  will  be  used  by  the  Petitioner  for  completing  the
project. The road will be reopened after the realignment from Point  “B”  by
the             end             of              December              2018.”
 (Id. at p- 2)



14    During the course of the hearing,  it  has  been  stated  before  this
Court that a temporary closure of the road is required until  December  2018
and that the road would be reopened after realignment of the entry and  exit
points as indicated in the approved plan.

15    The Delhi High Court cannot be faulted for  having  proceeded  on  the
basis of the clear statement in the counter affidavit filed by NDMC  to  the
effect that it has  sanctioned  the  layout  plan  in  which  the  road  was
retained and it was only the entry and exit points which have  been  shifted
towards Aurobindo Marg in accordance with the  NOC  issued  by  the  Unified
Traffic and Transportation Infrastructure  (Planning  &  Engineering).  This
being the clear and categoric statement of the planning authority, the  High
Court observed that the Appellants were bound by the layout plan  which  was
sanctioned by NDMC. We also take note of the fact that  in  the  application
that  was  submitted  by  the  Appellants  to  the  State  Expert  Appraisal
Committee (a copy of which is  attached  as  Annexure  “A”  to  the  further
affidavit filed on behalf of the Appellants), it has been  stated  that  “no
new road will be constructed during construction or operation.”

16    The position that now emerges  before  this  Court  from  the  further
affidavit which has been filed on behalf  of  the  Appellants  is  that  the
existing road shall be closed temporarily until December 2018.  This  is  to
facilitate the work of reconstruction and to obviate any danger or  mishaps.
The closure is temporary and not for an indefinite duration. The  Appellants
have furnished an undertaking to restore the road to its original  form  and
width thereafter in terms of the approved plan.

17    The  original  petitioners  before  the  High  Court,  have  expressed
apprehensions during the course of the hearing about whether the road  would
be restored in a manner as is required under the sanctions issued  by  NDMC.
On their behalf,  it  has  been  urged  that  necessary  safeguards  may  be
instituted by this Court so that these apprehensions are  duly  allayed.  On
the other hand, the learned Attorney General submitted that as a  result  of
the judgment of the Delhi High Court, the execution of  the  project,  which
involves an outlay  of  Rs.  5,300/-crores,  has  been  stalled  and  it  is
necessary for the earlier completion of  the  project  that  this  state  of
impasse  should  end.  Moreover,  it  has  been  urged  that  the   original
petitioners before the High Court are not residents  of  Kidwai  Nagar  East
which was a colony for government  servants  but  are  residents  of  nearby
localities. It was urged that a temporary closure of the road to  facilitate
the progress of the work would not cause any prejudice to the  residents  of
colonies in the vicinity who have alternative means of ingress  and  egress.
Moreover, it was urged that since the Appellants  have  now  stated  clearly
that they shall restore the road by December 2018  in  accordance  with  the
terms of the approved layout  plan,  the  apprehensions  of  the  residents’
associations would be duly met.

18    We have adverted to the affidavit which has been filed  on  behalf  of
the Appellants during the course of the hearing and to the undertaking  that
the Appellants would by December 2018 restore the road  in  accordance  with
the terms of the approved layout plan. In other words, the  closure  of  the
road is not of a permanent  nature  but  is  of  a  temporary  character  to
facilitate the completion of the work.  Presently, it has been  stated  that
Veer Chandra Singh Garhwali Marg has been excavated to a depth of 35  to  40
feet  for  facilitating  the  construction  of  basements  which   will   be
interconnected at points which  would  fall  under  the  road.  A  temporary
closure of ingress and egress has been necessitated to  avoid  any  mishaps.
That being the position, we see merit in the  grievance  of  the  Appellants
that at this stage, the balance of convenience would  lie  in  allowing  the
completion of the  project.   We  accept  the  assurance  furnished  by  the
Appellants on affidavit and through the learned Attorney General  in  Court.
The project for re-development having received the statutory  approvals,  it
is necessary to facilitate the completion of the project  on  schedule.  The
statements which have been made on behalf of the Appellants in  the  further
affidavit as well as the undertaking would adequately protect  the  concerns
of the petitioners who had moved to the Delhi High Court. At the same  time,
we deem it appropriate and proper in the interests of justice to  remit  the
proceedings to the High Court to consider whether any additional  safeguards
should be introduced so  as  to  allay  the  genuine  apprehensions  of  the
petitioners before it.   For  that  purpose,  the  proceedings  shall  stand
remitted back to the High Court  for  the  limited  purpose  of  considering
whether any such additional safeguards are required and if deemed  necessary
to provide for them. In the  meantime,  we  clarify  that  in  view  of  the
statements made before this Court on affidavit by  the  Appellants  and  the
undertaking  before  this  Court  as  noted  earlier  the  project  for  re-
development shall proceed unhindered. However, we leave it to  open  to  the
High Court to  impose  suitable  safeguards  in  pursuance  of  the  present
judgment, to allay the apprehensions of the original petitioners.

19    The Civil Appeals shall accordingly stand disposed of in these  terms.
The order passed by the High Court shall accordingly  stand  substituted  by
the above directions. No costs.



             .........................................CJI
                                                             [T S  THAKUR]


             ............................................J
                                                              [A M
KHANWILKAR]



.............................................J
                                                          [Dr D Y
CHANDRACHUD]
New Delhi
September 02, 2016.

whether “packing materials” which enter the local area for consumption therein, that is for packing tea that is manufactured by the appellant, can be said to be raw material, components, or inputs used in the manufacture of tea.= The appellant is a public limited company having a tea manufacturing unit at Dharwad and various other units which also manufacture tea. The tea manufactured by the appellant is of three types, namely, packet tea, tea in tea bags, and quick brewing black tea. It is claimed that the Dharwad Unit, as opposed to the other units manufacturing tea, is a new unit and is, therefore, exempt altogether from payment of entry tax on packing material of tea under a notification dated 31.3.1993 issued under Section 11A of the Karnataka Tax on Entry of Goods Act, 1979 (hereinafter referred to as the “Karnataka Entry Tax Act”). Insofar as the other units are concerned, it is the case of the appellant they are covered by Explanation II to a Notification dated 23.9.1998 issued under Section 3 of the said Act, and “packing material” being covered by the said Explanation would entitle them to pay entry tax at the rate of 1% and not 2%. In these appeals, we are concerned with three assessment years 1994-1995, 1995- 1996 and 1996-1997.- We are, therefore, of the view that the High Court was correct in following its own earlier Division Bench judgment in the Nestle case. This appeal is, accordingly, dismissed.

                                                                  REPORTABLE

                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                        CIVIL APPEAL NO.4003 OF 2007




      HINDUSTAN LEVER LTD.                         …APPELLANT

                                   Versus

      STATE OF KARNATAKA                             …RESPONDENT




                               J U D G M E N T

      R.F.Nariman, J.




   1. The appellant is a public limited company having a  tea  manufacturing
      unit at Dharwad and various other units which  also  manufacture  tea.
      The tea manufactured by the  appellant  is  of  three  types,  namely,
      packet tea, tea in tea bags, and  quick  brewing  black  tea.   It  is
      claimed  that  the  Dharwad  Unit,  as  opposed  to  the  other  units
      manufacturing tea, is a new unit and is, therefore, exempt  altogether
      from payment  of  entry  tax  on  packing  material  of  tea  under  a
      notification dated 31.3.1993 issued under Section 11A of the Karnataka
      Tax on Entry of Goods  Act,  1979  (hereinafter  referred  to  as  the
      “Karnataka Entry Tax Act”).  Insofar as the other units are concerned,
      it is the case of the appellant they are covered by Explanation II  to
      a Notification dated 23.9.1998 issued under Section 3 of the said Act,
      and “packing material” being covered by  the  said  Explanation  would
      entitle them to pay entry tax at the rate of 1% and not 2%.  In  these
      appeals, we are concerned with three assessment years 1994-1995, 1995-
      1996 and 1996-1997.



   2. The question that arises  for  decision  in  this  appeal  is  whether
      “packing  materials”  which  enter  the  local  area  for  consumption
      therein,  that  is  for  packing  tea  that  is  manufactured  by  the
      appellant, can be said to be raw material, components, or inputs  used
      in the manufacture of tea.  In order to answer this  question,  it  is
      necessary to first set out the relevant provisions  of  the  Karnataka
      Entry Tax Act. They are as follows:

           “2. Definitions.- (A) In this Act, unless the context  otherwise
           requires,-

                 (4a) goods means all kinds of moveable property (other than
           newspapers, actionable claims, stocks and shares and securities)
           and includes livestock;

                 (7) “Schedule” means a schedule appended to this Act;

                 (8)   “tax” means tax leviable under this Act;

                 (8a) ‘Value of the goods’ shall mean the purchase value  of
           such goods that is to say, the purchase price at which a  dealer
           has purchased the goods inclusive of charges  borne  by  him  as
           cost  of  transportation,  packing,  forwarding   and   handling
           charges, commission, insurance, taxes, duties and the  like,  or
           if such goods have not been purchased  by  him,  the  prevailing
           market price of such goods in the local area.

                 (B)   Words and expressions  used  in  this  Act,  but  not
           defined,  shall  have  the  meaning  assigned  to  them  in  the
           Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957.)

                 3. Levy of tax.- (1) There shall be levied and collected  a
           tax on entry of any goods specified in the FIRST SCHEDULE into a
           local area for consumption, use or sale therein, at  such  rates
           not exceeding five percent of the value of the goods as  may  be
           specified  retrospectively  or  prospectively   by   the   State
           Government by notification and  different  dates  and  different
           rates  may  be  specified  in  respect  of  different  goods  or
           different classes of goods or different local areas.

           11A. Power of State Government to exempt or reduce tax.-

           (1)  The State Government may, if in its opinion it is necessary
           in public interest so to do, by notification and subject to such
           restrictions and conditions  and  for  such  period  as  may  be
           specified  in  the  notification,  exempt   or   reduce   either
           prospectively or retrospectively the tax payable under this Act,-



                 (i)   by any  specified  class  of  persons  or  class  of
           dealers or in respect of any goods or class of goods; or

                 (ii) on entry of all or any goods or class of  goods  into
           any specified local area.

           (2) The State Government may, by notification cancel or vary any
           notification issued under sub-section (1).

           (3) Where any restriction  or  condition  specified  under  sub-
           section (1) is contravened or is not observed by a dealer  or  a
           declaration furnished under the said sub-section is found to  be
           wrong, then such dealer shall be liable to pay by way of penalty
           an amount equal to twice the difference between the tax  payable
           at the rates specified by or under the Act and the tax  paid  at
           the rates specified under the notification  on the value of such
           goods in respect of which such contravention  or  non-observance
           has taken place or a wrong declaration is furnished:

                 Provided that before taking action  under  the  sub-section
           the dealer shall be given  a  reasonable  opportunity  of  being
           heard.

                            FIRST SCHEDULE

                       (See Section 3 (1))

           66.  Packing materials namely :-

           (i)    fibre board cases, paper boxes,  folding  cartons,  paper
           bags, carrier bags and card board boxes, corrugated board  boxes
           and the like.

           (ii)   tin plate containers (cans, tins and boxes)  tin  sheets,
           aluminium foil, aluminium tubes, collapsible tubes, aluminium or
           steel drums, barrels and crates and the like ;

           (iii)   plastic,  poly-vinyl  chloride  and  polyethylene  films
           bottles, pots, jars, boxes, crates, cans, carboys,  drums,  bags
           and cushion materials and the like ;

           (iv)    wooden boxes, crates, casks and containers and the like;

           (v)    gunny bags, bardan (including batars), hessian cloth, and
           the like ;

           (vi)   glass bottles, jars and carboys and the like ;

           (vii)  laminated pacing materials such as bitumanised paper  and
           hessian based paper and the like;

           80. Raw materials component parts and inputs which are  used  in
           the manufacture of an intermediate or finished product.”




      3.    Under Section 11A of the Act, a  Notification  dated  31.3.1993,
      exempting raw materials, component parts, and inputs entering a  local
      area for use  in  the  manufacture  of  an  intermediate  or  finished
      product, was promulgated.  It reads as under:

           “Entry tax on raw materials, etc.  for  use  in  manufacture  of
           goods by new industrial units – Exemption (Karnataka)

           Notification III No.FD.11.CET 93 dated the 31st March,1993

           [Public in Karnataka Gazette, Extraordinary  No.  201,  Part  4-
           C(ii) dated 31st March, 1993]

           In exercise of the powers  conferred  by  section  11-A  of  the
           Karnataka Tax on Entry of Goods  Act,  1979  the  Government  of
           Karnataka being of the opinion  that  it  is  necessary  in  the
           public interest so to do, hereby exempts with  effect  from  the
           first day of April, 1993 the tax payable under the said act,  on
           the entry of raw  materials,  component  parts  and  inputs  and
           machinery and its parts  into  a  local  area  for  use  in  the
           manufacture of an intermediate or finished product  by  the  new
           industrial units mentioned in column (2)   of  the  Table  below
           located in the zones specified in column (3) and for the  period
           mentioned in Column (4) thereof.

                                    TABLE

|Sl.No.|Type of Industry |Location of Industry   |Period of exemption     |
|1     |2                |3                      |4                       |
|      |                 |                       |                        |
|1.    |Tiny/Small/medium|Situated in Zone-III   |4 years from the date of|
|      |and large scale  |specified in annexure-I|commencement of         |
|      |industrial units |to Government Order No.|commercial production or|
|      |                 |CI/138 SPC/90, dated   |4 years from the date of|
|      |                 |27.9.1990              |commencement of this    |
|      |                 |                       |notification whichever  |
|      |                 |                       |is later.               |
|2.    |Tiny/small/medium|Situated in Zone-IV    |5 years from the date of|
|      |and large scale  |specified in annexure I|commencement of         |
|      |industrial units |to Government Order No.|commercial production or|
|      |                 |CI/138/SPC/90, dated   |5 years from the date of|
|      |                 |27.9.1990              |commencement of this    |
|      |                 |                       |notification whichever  |
|      |                 |                       |is later.               |
|3.    |Tiny/small scale/|Situated in Zone-III   |5 years from the date of|
|      |Medium and large |specified in annexure I|commencement of         |
|      |scale industrial |to Government Order No.|commercial production   |
|      |units in the     |CI/138/SPC/90, dated   |OR                      |
|      |thrust sector as |27.9.1990              |5 years from the date of|
|      |defined in       |                       |commencement of this    |
|      |annexure-II to   |                       |notification whichever  |
|      |G.O. No.         |                       |is later.               |
|      |CI.138/SPC/90,   |                       |                        |
|      |dated 27.9.1990  |                       |                        |
|4.    |Tiny/small scale/|Situated in Zone-IV    |6 years from the date of|
|      |Medium and large |specified in annexure-I|commencement of         |
|      |scale industrial |to Government Order No.|commercial production,  |
|      |units in the     |CI/138/SPC/90, dated   |OR                      |
|      |thrust sector as |27.9.1990              |6 years from the date of|
|      |defined in       |                       |commencement of this    |
|      |Annexure II to   |                       |notification whichever  |
|      |G.O. No.         |                       |is later.               |
|      |CI.138/SPC/90,   |                       |                        |
|      |dated 27.9.1990  |                       |                        |


____________________________________________________________________________
_________

           Explanation – (1) For the purpose of this  notification  “a  new
           industrial unit” shall have the same meaning assigned to  it  in
           Notification No. FD 239 CSL 90(1) dated 19th June, 1991,  issued
           under Section 8-A of the Karnataka Sales Tax Act, 1957.

           (2)   The provisions of the notification shall not  apply  to  a
           unit to which the provisions of  Notification  No.  FD  239  CSL
           90(1) dated 19th June, 1991 issued  under  Section  8-A  of  the
           Karnataka Salex Tax Act, 1957 shall not apply.

           (3)   The procedure specified in Notification  No.  FD  239  CSL
           90(1), dated 19th June, 1991 issued under  Section  8-A  of  the
           Karnataka Sales Tax Act, 1957 for claiming exemption under  that
           notification shall mutates mutandis apply to a  industrial  unit
           claiming exemption under this notification.”




      4.    By a notification dated 31.3.1994, various goods which entered a
      local area  were  charged  at  different  rates  of  entry  tax.  This
      notification was struck down by the High Court as  violating   Article
      301 of the Constitution, and hence, the State Government came out with
      notification dated 23.9.1998 to cure the defects pointed  out  by  the
      High Court, and was for the period dated 1.4.1994  to  6.1.1998.   The
      aforesaid notification reads as follows:

           “SI No.104

               No. FD 112 CET 98, Bangalore, dated 23rd September, 1998

           In exercise of  the  powers  conferred  by  sub-section  (1)  of
           Section 3 of the Karnataka Tax  on  Entry  of  Goods  Act,  1979
           (Karnataka Act 27 of 1979), the Government of Karnataka,  hereby
           specify that with effect from the First day of April,  1994  and
           upto 6th day of January, 1998, tax shall be levied and collected
           under the said Act on the entry of goods specified in column (2)
           of the table below into a local area from any place outside  the
           State of consumption or use therein, at the rates  specified  in
           the corresponding entries in column ; (3), thereof:-

                                TABLE

           Sl.              No.                                   Commodity
           Rate of tax

               1                 2                                 3

            3.            Packing material namely:

                    (i)  Fibre board cases, paper boxes, Folding         2%

                         cartons, paper bags, carrier bags and

                         card board boxes, corrugated board boxes

                         and the like;

                   (ii)  Tin plate containers (cans, tins and            2%

                          boxes), tin sheets, aluminium foil,

                          aluminium tubes, collapsible tubes,

                          aluminium or steel drums, barrels and crates

                           and the like:

                 (iii)   Plastic, polyvinyl chloride and polyethylene
                 2%

                        firms, bottles, pots, jars, boxes, crates, cans,

                        carboys, drums, bags and cushion materials

                        and the like;

                        (iv)  Wooden boxes, crates, casks and containers
           2%

                               and the like;

                 (v)   Gunny bags, bardan (including batars) hessian      2%

                        cloth and the like;

                 (vi)   Glass bottles, jars and carboys and the like;
           2%

                 (vii)  Laminated packing materials, such as bluminised   2%

                         paper and hessian-based paper and the like;

                 4.    Raw materials, component parts and inputs    1%

                       are used in the manufacture of an intermediate

                       of finished product.

           Explanation I – The words “raw materials,  component  parts  and
           any other inputs”  do  not  include  exempted  goods  which  are
           specified  in  the  Schedule,  horticultural  produce,  cereals,
           pulses, oil seeds including copra and cotton  seeds,  timber  or
           wood of any species, newsprint, silk  cocoons,  raw,  thrown  or
           twisted silk, tobacco (whether raw or cured) and  blended  yarn,
           man-made filament yarn, man-made  fibre  yarn,  man-made  fibre,
           woolen yarn and woolen blended yarn, washed cotton seed oil, non-
           refined edible oil, rice bran and oil cake and such other  goods
           as may be notified by the State Government from time to time.




           Explanation II – If any of the goods liable to  tax  under  this
           Act are brought into a local area for use or consumption as  raw
           materials, component parts and inputs in the manufacture  of  an
           intermediate or finished product, the tax payable on such  goods
           shall be at the rate of one percent.”







5.    All the authorities  under  the  Entry  Tax  Act  i.e.  the  Assessing
Authority,  the  First  Appellate  Authority  and  the  Karnataka  Appellate
Tribunal  have  held  that  packing  material  cannot  be  regarded  as  raw
material, component parts or inputs used  in  the  manufacture  of  finished
goods and, therefore, in  the  context  of  the  Entry  Tax  Act  read  with
Schedule I, such packing material is neither exempt nor  chargeable  at  the
rate of 1% on a true construction of the  aforesaid  notifications  of  1993
and 1998.  The High Court in  turn  has  dismissed  the  revision  petitions
filed under the statute by the assessee  following  their  own  judgment  in
Nestle India Ltd. v. State of Karnataka, a Division Bench  judgment  of  the
Karnataka High Court dated 22.3.2006.  This is how the appellants have  come
before us in the present civil appeals.

      6.     Shri  Arvind  Datar  and  Shri  Kavin  Gulati,  learned  senior
      advocates, strenuously argued before  us  that  the  judgment  in  the
      Nestle case, which was followed in the  instant  case,  was  incorrect
      inasmuch as  according  to  them  “packing  material”  is  clearly  an
      “input”, if not a component  part  of  manufactured  tea,  and  would,
      therefore, qualify for exemption and/or lesser rate of tax as the case
      may be.  They also argued that Explanation II to the  Notification  of
      23.9.1998 made the position clear that even  though  packing  material
      may be covered under item 3 of the said Notification, yet, as it is an
      input in the manufacture of the finished  product  tea,  it  would  be
      covered by Explanation II, and therefore would be taxable at the  rate
      of 1% and not 2%. They further argued that words and expressions  that
      are not defined under the Entry Tax Act but which are defined  in  the
      Karnataka Sales Tax Act, 1957  would  have  to  be  borrowed  for  the
      purpose of the Entry Tax Act.  In this  regard,  in  particular,  they
      relied upon Section  5A  of  the  Karnataka  Sales  Tax  Act,  and  in
      particular Explanation  I  to  the  aforesaid  Section  which  defined
      “industrial inputs” as meaning  either  a  “component  part”  or  “raw
      material” or “packing materials”, and argued that packing material has
      been recognized as an input under the Karnataka  Sales  Tax  Act,  and
      should be so recognized under the Entry Tax  Act  read  with  the  two
      notifications aforesaid.  They also cited a large number of  judgments
      of this Court and of the High Court to buttress their submission  that
      packing material would certainly come within  the  expression  “input”
      and would therefore be covered by the aforesaid two notifications.

      Shri Kavin Gulati also specifically  pointed  out  the  Tea  Marketing
Control Order, 2003 made under Section 30 of the Tea  Act,  1953  in  which,
“manufacturer” has been defined as a person who also  produces  value  added
products commercially known as tea, that is packet tea, tea box,  etc.,  and
therefore went on to argue that it is obvious that packing material used  to
market tea would necessarily be included.




7.    Shri Patil, learned senior advocate appearing on behalf of  the  State
of Karnataka, countered these submissions, and stated that  the  High  Court
was absolutely correct in  interpreting  the  Entry  Tax  Act  and  the  two
notifications in the manner that it did in Nestle case.  He argued that  the
context of the Entry Tax Act is most important and that decisions  relatable
to the Central Excise Act and to Sales  Tax  statutes  would  not  therefore
apply.  His primary argument was that  Schedule  I  of  the  Entry  Tax  Act
itself made a clear distinction between packing materials, on the one  hand,
and raw materials, component parts and inputs, on the  other,  the  Schedule
making it clear that they were distinct  and  separate  goods.   He  further
adverted to the definition of the expression “goods” contained in the  Entry
Tax Act and argued that unlike in the Central  Excise Act and in  Sales  Tax
statutes, goods need not be marketable, the definition  confining  goods  to
“movable property” without more.  He also argued that adverting  to  Section
5A of the Karnataka Sales Tax Act would be of no help in the  facts  of  the
present case inasmuch as we are not concerned with “industrial  inputs”  but
inputs as understood by the Entry Tax Act read with Schedule  I.   According
to him all the judgments cited by the  appellants  were  distinguishable  in
that none of them pertain to any entry tax statute but were  all  under  the
Central Excise Act or Sales Tax statutes.



8.    Having heard learned counsel for the parties, it is  important  to  go
back to a few fundamentals. As has been  explained  in  Escorts  Limited  v.
CCE, (2015) 9 SCC 109,  the  definition  of  “manufacture”  in  the  Central
Excise Act is dependent upon  the  definition  of  “goods”  defined  by  the
Constitution in Article 366(12).  This Court has therefore held:-

           “It is clear on a reading of this Entry that a duty of excise is
           only leviable on “goods”  manufactured  or  produced  in  India.
           “Goods” has been defined under Article 366(12) as follows:
              “366.Definitions.—In this Constitution,  unless  the  context
           otherwise requires, the following expressions have the  meanings
           hereby respectively assigned to them, that is to say—
                                     ***
              (12)  ‘goods’  includes  all   materials,   commodities   and
           articles;”


           Each of these three  expressions  has  been  defined  in Shorter
           Oxford English Dictionary as follows:
              “Materials”.—the matter of which a thing is or may  be  made;
           the constituent parts of something.
              “Commodities”.—a thing of use or value; a thing  that  is  an
           object of trade; a thing one deals in or makes use of.
              “Articles”.—a particular item of business.


           Although the definition of “goods” is an inclusive  one,  it  is
           clear that materials, commodities and articles spoken of in  the
           definition take colour from one another. In order to be  “goods”
           it is  clear  that  they  should  be  known  to  the  market  as
           materials, commodities and articles that are  capable  of  being
           sold.


           In the basic judgment which has been referred to in every excise
           case for conceptual  clarity,  namely, Union  of  India v. Delhi
           Cloth & General Mills Co. Ltd. [(1977) 1 ELT 199 : AIR  1963  SC
           791 : 1963 Supp (1) SCR 586] , this Court held that  for  excise
           duty to be chargeable under the constitutional entry  read  with
           Section 3 of the Central Excise and Salt Act, two  prerequisites
           are necessary. First,  there  must  be  “manufacture”  which  is
           understood  to  mean  the  bringing  into  existence  of  a  new
           substance. And secondly, the word “goods” necessarily means that
           such manufacture must bring into existence a new substance known
           to  the  market  as  such  which  brings  in  the   concept   of
           marketability in addition to manufacture. …” [paras 8-11]



9.    However, on  a  perusal  of  the  definition  of  “goods”  in  Section
2(A)(4a) of the Entry Tax Act, the said  definition  is  an  exhaustive  one
including all kinds of movable property and livestock.  It is  obvious  from
a reading of this definition that marketability does  not  appear  to  be  a
sine qua non for something to qualify as “goods” under the  Entry  Tax  Act,
unlike the Central Excise Act, and this basic fact will have to be  kept  in
view while dealing with some of the judgments that have  been  cited  before
us.  This is for the reason that anything that is  tangible,  without  more,
and enters a local area for consumption, sale or  use  therein  is  taxable,
the taxable event being ‘entry’ and not ‘manufacture’ of  goods,  which,  as
has been noticed hereinabove, brings in the concept of marketability in  the
context of a duty of excise, which is absent in the context  of  entry  tax.
We might also add that Section 2(A)(8a) wherein the “value of the goods”  is
defined, also makes a distinction between  “goods”  as  such,  and  “packing
material”, making it clear that  charges  borne  by  a  dealer  as  cost  of
packing would have to be included in the “value of goods”.  In  the  context
of  the  Entry  Tax  Act,  the  difference  between  ‘goods’  used  in   the
manufacture of goods and “packing material” is also brought out by  Schedule
I. Packing materials are separately defined  in  Entry  66.   On  the  other
hand, raw materials, component parts and  inputs,  which  are  used  in  the
manufacture of an intermediate  or  finished  product,  are  separately  and
distinctively given in Entry 80 thereof. The context of the  Entry  Tax  Act
therefore is clear.  When raw materials,  component  parts  and  inputs  are
spoken of, obviously they refer to materials, components  and  things  which
go into the finished product, namely, tea in the present  case,  and  cannot
be extended to cover packing materials of the said tea which  is  separately
provided for by the aforesaid Entry 66.




10.    The  notification  dated  23.9.1998  issued  under  Section  3   uses
identical language as that contained in Entries 66 and 80 of Schedule  I  to
the Entry Tax Act.  Equally, notification dated 31.3.1993  is  an  exemption
notification  issued  under  Section  11A  which  also  uses  the  identical
language of Entry 80 of Schedule I. This being the case, it  is  clear  that
neither notification can be read  to  include  “packing  material”  as  “raw
materials, component parts or inputs used in the manufacture” of tea.

      11.   This brings us to an argument made by learned  counsel  for  the
      appellants on the  correct  construction  of  Explanation  II  to  the
      notification dated 23.9.1998.

      12.   What has first to be seen is  that  packing  material,  and  raw
      materials, component parts and  inputs  are  separately  provided  for
      under the Schedule to the Act.  The same is also true of the aforesaid
      Notification. Packing material is contained in Entry 3  of  the  table
      whereas raw materials, component parts and  inputs  are  contained  in
      Entry 4.  The rate at which they are taxed is also different – packing
      materials at 2%, whereas raw materials, components  parts  and  inputs
      are taxed  at  1%.   This  being  so,  the  reason  for  inclusion  of
      Explanation II appears to be that goods which are liable to tax, being
      finished goods in themselves, may yet be brought into a local area for
      use or consumption as raw material, component parts and inputs in  the
      manufacture of an intermediate or finished product.  It is  only  such
      goods that are liable to be taxed at the rate of 1%.  It is  difficult
      to accept the argument on behalf of the appellants that Explanation II
      makes it clear that though packing materials may be liable to  tax  at
      2%, yet if they fall in Explanation II, they would be liable to tax at
      the rate of 1%.  This would fly in the face of the scheme of  Schedule
      I of the statute which, as has been held earlier, makes it clear  that
      in no case  can  packing  materials  be  said  to  be  raw  materials,
      component parts or inputs used in the manufacture of  finished  goods.
      For  this  reason  alone  we  find  it  difficult  to   construe   the
      notification  dated  23.9.1998  in  the  manner   suggested   by   the
      appellants.

13.   Even otherwise, there is no  such  Explanation  II  contained  in  the
exemption notification dated 31.3.1993.  This being the case, if we were  to
accept the case of the appellants, they would be liable to tax at  the  rate
of 1% under the 1998 notification but would not be  exempt  under  the  1993
notification, thus rendering the same packing material liable to tax at  the
rate of 2% in the case of the Dharwad unit and 1% in the case of  all  other
units.  This would lead to an anomalous situation which can best be  avoided
by not accepting the argument on behalf of the appellants.




14.   Equally, the argument based on Section 5A of the Karnataka  Sales  Tax
Act is fallacious in that it is only for the purpose of “industrial  inputs”
that packing  materials  are  included,  and  forms  a  separate  scheme  of
taxation under the Sales Tax statute. We cannot accede to the argument  that
de hors the context of the Entry Tax Act, we should accept  that  industrial
inputs  include  packing  materials  and  that  therefore,  by   parity   of
reasoning, “inputs” under the Entry Tax  Act  should  also  include  packing
material.  This argument has therefore correctly been  turned  down  by  the
High Court of Karnataka in the Nestle case.




15.   We have now to  deal  with  the  judgments  cited  on  behalf  of  the
appellants.  In Government of Andhra Pradesh v. Guntur  Tobaccos  Ltd.,  [15
STC 240], this Court had  to  decide  as  to  whether  the  use  of  packing
material should be regarded as execution of a works contract and  not  as  a
sale.  This Court held on the facts in that case that packing  material  was
part of the process of re-drying tobacco as it was necessary to pack  it  in
a waterproof material to protect it from heat and humidity, so as  to  store
tobacco for a sufficiently long period to avoid fermentation,  and  to  make
the tobacco mature for use in cigarettes, cigars, etc.  The context  of  the
judgment is entirely different from the facts contained in the present  case
and would thus have no relevance.  Learned counsel for the appellants  tried
to draw succour from this judgment stating that the idea of packing  tea  is
also to keep out moisture.  While that may be so, that  single  fact  cannot
lead to a conclusion that would drive a coach and four  through  the  scheme
of the Entry Tax Act.




16.   Brooke Bond Lipton India Ltd. v. State of Karnataka, 109 STC 265,  was
cited next. This is a High Court judgment  under  the  Karnataka  Sales  Tax
Act, in which it was stated that packaging led to  value  addition  for  the
purpose of excise and sales tax, and  that  it  was  a  possible  view  that
packaged blended tea produced in the industrial unit of the appellant  is  a
manufactured product in which packing materials are inputs. This was in  the
context of exemption notifications under the Sales Tax Act.  As can be  seen
from paragraph 26 of the aforesaid judgment, the questions involved in  that
case were entirely different.  Also, the test of what is  “manufacture”  was
borrowed from the Central Excise Act as can be seen  from  paragraph  48  of
the judgment. The  High  Court  points  to  a  new  dimension  to  the  word
“manufacture” in the context of excise which would therefore include  within
it packing material as well in order that  the  goods  be  made  marketable.
This, as we have seen above, cannot be done in the context of the Entry  Tax
Act.




      17.   In Tata Engineering & Locomotive Co. Ltd. (TELCO)  v.  State  of
      Bihar, (1994) 6 SCC 479, this Court had to deal  with  a  notification
      issued by the State of  Bihar  in  the  context  of  sales  tax.   The
      expression “raw material” and “input” was used  in  the  notification.
      This Court held, following J.K. Cotton Spinning &  Weaving  Mills  Co.
      Ltd. v. S.T.O.,  (1965)  1  SCR  900,  that  the  expression  “in  the
      manufacture of goods” would  normally  encompass  the  entire  process
      carried on by the dealer of converting  raw  materials  into  finished
      products.  The precise question before this Court was whether products
      finished in themselves, such as tyres, tubes,  batteries,  etc.,  when
      purchased by the appellant for use in  the  manufacture  of  vehicles,
      could be said to be inputs.  This Court held that as a vehicle  cannot
      be operative without tyres, tubes, and batteries, obviously they  were
      inputs in the sense of the dictionary meaning of  what  is  “put  in”.
      Both the fact situation and the ratio of this judgment are far removed
      from the facts in the present case inasmuch as  it  is  nobody’s  case
      that without the packing material manufactured tea cannot be  said  to
      exist  as  a  finished  product,  it  being  “moveable  property”  and
      therefore “goods” under the Karnataka Entry Tax Act.  This judgment is
      also therefore of no avail to the appellant.

18.   M/s. Star Paper Mills Ltd. v. CCE, Meerut, (1989) 4  SCC  724,  is  an
excise case in which  an  exemption  Notification  exempted  goods  used  as
component parts in manufacture  of  any  goods  on  which  excise  duty  was
leviable. This judgment defines the word “component” to mean  a  constituent
part. In this context, it was held that paper core is a  component  part  of
paper delivered to the customer in rolls, but not in sheets as  it  was  not
necessary for  manufacture  of  paper  sheets.   This  case  would  have  no
application to the facts of the present case.  It is  obvious  that  packing
material used to pack a product  complete  in  itself,  cannot  possibly  be
included in the word  “component”  as  it  is  not  a  constituent  part  of
manufactured tea.



      19.   Three other judgments under the Central Excise Act  were  cited.
      The first of them, CCE v. M/s. Eastend Paper Industries Ltd., (1989) 4
      SCC 244, was concerned with the marketability aspect of central excise
      which, as has been held by us above, would not apply in the context of
      the Entry Tax Act.  In that judgment, paper wrapping was  held  to  be
      essential to make the concerned goods marketable.  The second of these
      judgments CCE v. Ballarpur Industries Limited, (1989) 4 SCC 566, again
      concerned a completely different fact situation.  The question in that
      case  was  whether  an  admitted  input,  Sodium  Sulphate,   in   the
      manufacture of paper, would not be construed to be a raw material only
      by reason that in the course of chemical reactions Sodium Sulphate  is
      consumed and burnt up.  This Court held that consumption  and  burning
      up would make no difference, as an ‘input’ need  not  always  manifest
      itself in the final product. And in H.M.M. Ltd. V. CCE, (1994)  6  SCC
      594, it was held that a screw cap on a bottle containing Horlicks  was
      a component part of Horlicks, it  being  an  essential  ingredient  to
      complete the process of manufacture to make Horlicks marketable.  This
      judgment again will not apply for the  same  reason  indicated  above,
      namely, that marketability is not relevant  for  the  purpose  of  the
      Entry Tax Act.




      20.   M/s. J.K. Cotton Spinning & Weaving Mills Co. Ltd. v. Sales  Tax
      Officer, Kanpur, (1965) 1 SCR 900, is a judgment in which Section 8 of
      the Central Sales Tax Act was  pressed  into  aid  on  behalf  of  the
      appellant.  In this case, the question was whether drawing  materials,
      photographic  materials  etc.  could  be   comprehended   within   the
      expression “in the manufacture of goods for sale” within  the  meaning
      of section 8(3)(b) of the Central Sales Tax Act, 1956.   In  order  to
      determine whether such materials would qualify  as  such,  this  Court
      held that where any particular process is so integrally connected with
      the  ultimate  production  of  goods  that,  but  for  that   process,
      manufacture or process of goods  would  be  commercially  inexpedient,
      goods required in that process would fall within  the  expression  “in
      the manufacture of goods”.  What has been said about the excise  cases
      squarely applies here. The expression used in Section 8 of the Central
      Sales Tax Act is not “in  the  manufacture  of  goods”,  but  “in  the
      manufacture  of  goods  for  sale”,  bringing  in   the   element   of
      marketability.




21.   It only remains to deal with  the  argument  made  on  behalf  of  the
appellant based on the Tea Marketing Control  Order.   Needless  to  add,  a
manufacturer for the purpose of the said Order is specifically a person  who
produces value added products commercially known as  tea.   The  context  of
the said definition is for  the  purpose  of  registering  manufacturers  or
producers and buyers of tea, having relevance therefore to the  sale  aspect
of tea.  As has already been held by us, the  context  of  entry  tax  being
different, we are afraid this argument also does not avail the appellant.



      22.   We are, therefore, of the view that the High Court  was  correct
      in following its own earlier Division Bench  judgment  in  the  Nestle
      case.  This appeal is, accordingly, dismissed.




                                             ..............................J
                                       .
                                             (A.K. SIKRI)




                                             ..............................J
                                       .
                                             (R.F. NARIMAN)
      New Delhi;
      September 2, 2016