Dyeing white yarn treated as manufacture because it creates a commercially different product under sales tax law

Dyeing white yarn constitutes manufacture under section 2(j) of the M.P. General Sales Tax Act, 1958, because the statutory definition is wide and covers any process of producing or preparing goods. The dyed yarn is commercially different from undyed yarn and serves a different use, so the process amounts to preparing goods within the Act. The question whether cotton yarn was declared goods under the Central Sales Tax Act was not referred and remained unexamined.

---

---

Issues: Whether dyeing of white yarn amounts to manufacture within the meaning of section 2(j) of the M.P. General Sales Tax Act, 1958, so as to attract purchase tax under the Act.

Analysis: The definition of manufacture in section 2(j) is wide and includes any process of producing or preparing goods. Dyeing white yarn results in dyed yarn, which is a commercially different product from undyed yarn and serves a different use. The process therefore constitutes preparing goods and falls within the statutory definition of manufacture. The question whether cotton yarn was declared goods under the Central Sales Tax Act was not referred and was left unexamined.

Conclusion: Dyeing of white yarn is manufacture within the meaning of section 2(j) of the M.P. General Sales Tax Act, 1958.

---