Extended meaning of manufacture does not cover mere resale of old utensils as scrap without a new commercial commodity.

A widened statutory definition of "manufacture" may extend beyond ordinary production to processes such as collecting, altering or processing, but only where the activity results in, or forms part of, a process yielding a new or distinct commercial commodity. Mere receipt of old and condemned brass utensils while trading in new utensils, followed by sale of those articles as scrap in the same form, does not amount to manufacture. As no new commercial commodity emerged, the assessee's activity fell outside the statutory meaning of manufacture and the scrap sale was not taxable on that footing.

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Issues: Whether the assessee, who received old and condemned brass utensils in the course of selling new utensils and sold such articles as scrap, was covered by the definition of "manufacture" under the U.P. Sales Tax Act so as to make the sale of brass scrap taxable.

Analysis: The statutory definition of "manufacture" was wider than its ordinary meaning and included producing, making, mining, collecting, extracting, altering, ornamenting, finishing or otherwise processing, treating or adapting goods. Even so, the word "collecting" had to be read in the context of the definition as a whole, namely as part of a process leading to a new or distinct commercial commodity. Mere receipt of old and condemned utensils in the course of trading in new utensils, and their sale in the same form, did not amount to a manufacturing process. No new commercial commodity emerged, and the assessee's activity could not be treated as manufacture within the statutory meaning.

Conclusion: The assessee was not covered by the definition of "manufacture", and the sale of brass scrap consisting of old and condemned utensils was not taxable on that footing.

Ratio Decidendi: An activity falls within an extended statutory definition of manufacture only if it results in, or forms part of a process yielding, a new or distinct commercial commodity; mere collection or resale of goods in the same form does not constitute manufacture.

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