Processing of spices into powder attracts sales tax when goods are altered for marketing, even without a new commodity.

Conversion of whole turmeric and whole black pepper into powder was treated as processing because it involved a real operation on the goods and produced a change for marketing, even though the commodities retained their identity. The absence of a statutory definition for "processed" and "processing" did not prevent the words from being given their plain meaning. Earlier local purchase tax and the fact that no new commercial commodity emerged did not defeat taxability at the sale stage. On that basis, the applicants were held to be dealers and the sales of the powdered commodities were held taxable under the Act.

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Issues: Whether converting whole turmeric and whole black pepper into powder for sale amounts to processing under the West Bengal Sales Tax Act, 1954, and whether the resulting sales are exigible to tax.

Analysis: The notified commodities were sold by the applicants after conversion from whole form into powdered form. The expressions "processed" and "processing" were not defined in the Act, and were therefore construed according to their plain and natural meaning. Applying the settled meaning of processing, the conversion of the commodities into powder involved a real operation on the goods and produced a change or effect on them for the purpose of marketing. The fact that the commodities may retain their original identity, or that tax had allegedly been paid at an earlier stage of local purchase, did not negate taxability at the stage of sale after processing. The later concessional scheme under section 23A(1) also proceeded on the basis that processed notified commodities could again attract tax on sale.

Conclusion: Conversion of whole turmeric and whole black pepper into powder amounted to processing, the applicants were dealers within section 2(b), and the sales of the powdered commodities were taxable under the Act.

Final Conclusion: The challenge to the notices and assessments failed, and the application was dismissed, leaving the taxing authorities entitled to proceed with assessment under the Act.

Ratio Decidendi: In sales tax law, processing means a continuous operation that brings about some change or effect on goods for marketing, even if no new commercial commodity emerges.

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