Manufacture under sales tax law requires real alteration in goods' nature; mere fumigation of foodgrains is not enough.

Fumigation and chemical treatment of foodgrains to preserve them from deterioration and pests does not amount to manufacture under section 2(17) of the Bombay Sales Tax Act, 1959, because manufacture requires a real alteration in the nature or character of the goods. The broad statutory definition cannot extend to every process applied to goods, and mere preservation or treatment is insufficient. On that interpretation, the dealer is not entitled to set-off under rule 43 of the Bombay Sales Tax Rules, 1959. The earlier Supreme Court construction of the same definition was followed, and the proposed reference was rejected as already settled against the applicant.

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Issues: Whether fumigating and treating foodgrains with insecticides, fumigants and similar chemicals amounts to manufacture under section 2(17) of the Bombay Sales Tax Act, 1959, and whether the dealer was consequently entitled to set-off under rule 43 of the Bombay Sales Tax Rules, 1959.

Analysis: The definition of manufacture in section 2(17) is wide, but it cannot be read so broadly as to treat every process applied to goods as manufacture. The controlling principle is that the process must have some real impact on the nature or character of the goods. Applying the settled interpretation, fumigation and treatment of foodgrains to preserve them from deterioration and pests does not bring about any alteration in their nature or character. The earlier Supreme Court ruling on the same statutory definition was followed, and the questions were treated as already concluded by that reasoning.

Conclusion: Fumigating and treating foodgrains with chemicals does not amount to manufacture within section 2(17) of the Bombay Sales Tax Act, 1959, and the claim to set-off under rule 43 fails.

Final Conclusion: The application for reference was rejected because the proposed questions were already settled against the applicant and did not require further reference.

Ratio Decidendi: A process applied to goods constitutes manufacture only if it effects a real alteration in the nature or character of the goods; mere preservation or treatment without such alteration is not manufacture.

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