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1. This revision petition, filed under section 23(1) of the Karnataka Sales Tax Act, 1957 (hereinafter, "the Act"), is directed against the order dated August 24, 1995 passed by the Appellate Tribunal. By the said order, the Tribunal has confirmed the order of the Joint Commissioner of Commercial Taxes upholding the provisional assessment orders passed by the assessing authority under section 12B(2) of the Act for the months of April to August, 1994.

FACTS NOT IN DISPUTE

2. The petitioner is a public limited company with registered office at Calcutta and corporate office at Bangalore. Sometime in 1991-92, it had set up a new industrial unit for blending and packaging of tea at the industrial area in Belur (Dharwad Growth Centre), Dharwad, by investing over Rs. 1.6 crores in plant and machinery. The said unit commenced commercial production from May 6, 1993.

4. It appears that keeping in view the said eligibility certificate, the petitioner-company filed monthly statements of its sales as required under section 12B of the Act for the months of April to August, 1994, inter alia, claiming 100 per cent tax exemption on the turnover representing the sales of packaged tea produced at its Dharwad unit. But, as noticed above, the said claim has been negatived by the authorities under the Act as also the Tribunal on the ground that, under the notification dated June 21, 1991, exemption can be claimed only "in respect of goods manufactured and sold by the new industrial units" and, keeping in view the nature of activities conducted in its Dharwad unit, the company cannot be held as manufacturing any commodity entitling exemption of tax in terms of the said notification.

13. In the present case, keeping in view the aforesaid statutory provisions, the respondent-Joint Director (ID), who is the competent authority under the notification, had granted the required eligibility certificate dated June 5, 1993 (annexure "C") in respect of the Dharwar unit of the petitioner, inter alia, certifying that -

"The unit is located in zone IV area, i.e., Dharwad Growth Centre, in terms of 1990-95 Package of Incentives and Concessions vide Government Order No. CI/138/SPC/90(P), Bangalore dated September 27, 1990 and is eligible for 100 per cent sales tax exemption, i.e., KST and CST on sale of finished goods for a period of 5 years from May 6, 1993, i.e., from the date of commencement of commercial production in the units as evidenced by first sale invoice bearing No. DF/001, dated May 6, 1993."

22. After so describing the operations involved in the industrial unit, he has further stated that the factory set up by the petitioner-company at Dharwad to manufacture blended packet tea is one of the most modern tea factory that he had come across. He had disclosed that the factory has generated direct and indirect employment for more than 100 persons in the industrially backward region of Dharwad in North Karnataka.

23. For the above uncontroverted affidavit, it is clear that the original garden teas of different flavour, taste and colour are blended in defined proportion though sophisticated mechanical process and the same is weighed through electro mechanical weighers and is filled and sealed in pack cartons or pouches in a synchronised manner. It is this packet of the blended tea which is the final product of the industrial unit which is marketed. It is also not in dispute that the said process of blending and packaging lead to "value addition" to the blended garden tea and it is this value of the packaged tea which forms the measure for levy of excise duty and sales tax both.