Processing of turmeric and black pepper into powder was enough to attract dealer liability under sales tax law.

Crushing whole turmeric and black pepper into powder was not treated as manufacture because the process did not create a distinct commercial article in the ordinary sense of the term. The wider and ordinary meaning of "processed" was applied instead, and a continuous operation producing a result was sufficient to amount to processing. On that basis, the powdered commodities fell within section 2(b) of the West Bengal Sales Tax Act, 1954, and the seller of those processed notified goods was liable as a dealer to sales tax.

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Issues: Whether crushing whole turmeric and black pepper into powder amounts to manufacture or processing within section 2(b) of the West Bengal Sales Tax Act, 1954, so as to make the seller a dealer liable to sales tax on the powdered commodities.

Analysis: The expression "manufacture" was not defined in the Act and was therefore construed in its ordinary sense. The conversion of the whole goods into powder did not create a distinct commercial article and, on that reasoning, did not amount to manufacture. The expression "processed" was also not defined and was given its ordinary and wider meaning. On that approach, a continuous and regular operation leading to a result was sufficient, and the conversion of whole turmeric and black pepper into powder was held to fall within processing. Since section 2(b) treated a person selling notified commodities manufactured, made or processed by him in West Bengal as a dealer, the powdered goods attracted liability.

Conclusion: The crushing of turmeric and black pepper into powder amounts to processing under section 2(b) of the Act, and the petitioner is a dealer liable to tax on the sale of the powdered commodities.

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