The meaning of "manufacturing" of taxable goods under the former Articles Tax Act;

The term "BENE" in this case means the case where goods are manufactured on the basis of transaction or supply at least, and it was found that the "BENE" in this case was the reaction material in the production process of a petroleum chemical, and it is nothing more than dumping it into other materials, so it cannot be said that it is the manufacture of goods for transaction or supply.

Subparagraph 2 of Article 3 and subparagraph 2 of Article 5 of the former Value-Added Tax Act; Article 1 subparagraph 3 of attached Table 1 of the Enforcement Decree of the Value-Added Tax Act

Korea Petroleum Corporation (Attorney Jeon Jong-gu, Counsel for defendant-appellant)

Head of Ulsan District Office

Daegu High Court Decision 77Gu54 delivered on February 12, 1980

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

Although the court below's "BE" in this case is a chemical medicine, it is justified in light of the record that the plaintiff company was using the chemical reaction material generated in the process of producing "CYOHEE" with the "NPHHHHA" as a raw material and the corresponding process is used as it is, and there is no error in the misapprehension of the judgment or the violation of the rules of evidence.

As referred to in this paper, the above "BENE" can be separated from only the above "BYNE" and may be subject to taxation under the former Customs Act. However, in this case, it was found that it was a temporary chemical reaction in the manufacturing process of the product "CYCYOHEE", and it is in harmony with other substances, and it cannot be realized independently or in money if it is viewed in the whole process. Thus, the judgment of the court below that it cannot be taxed in accordance with the non-taxation provision under the proviso of Chapter 3 of Table 1 of the Enforcement Decree of the former Customs Act No. 2 of the Goods Tax Act is reasonable.

The term "BENE" means the case where goods are manufactured on the premise of transaction or supply at least, but the "BENE" at issue in this case was found to be the reaction material in the production process of a petroleum chemical, so it cannot be called the manufacture of goods for the above transaction or supply. Therefore, there is no argument contrary to this.

Therefore, the appeal is dismissed and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Yang Byung-ho (Presiding Justice)

Justices Su-ho (Presiding Justice)