Kothari Products Limited vs Government Of Andhra Pradesh on 8 July, 1997
8. These ingredients are taxable under the entries mentioned against them. Incidentally we may point out that in the entry in the last column, viz., rate of tax payable is shown as 58 paise in a rupee but in fact 58 paise are taxed in five rupees but not in one rupee. It is not seriously disputed that mixing together of the aforementioned ingredients, would not automatically result into "pan masala". The ingredients have to be mixed according to the know how which involves manufacturing process. The product is called "pan masala" and accordingly it is subjected to duty under the Central Excise Act. It is also well-settled that once a new commercial product comes into existence from a combination of one or more taxable goods, the same is taxable under the APGST Act. (See Deccan Engineers v. State of Andhra Pradesh and State of Andhra Pradesh v. Venkatesh Foundry .