Brand stickers on television sets were not "processing" because they caused no real change in the commodity.

Affixation of brand stickers on television sets sold on resale did not amount to "processing" under the West Bengal Sales Tax Act because processing requires a real change in the commodity brought about by an operation on it. Mere branding stickers did not alter the sets, change their commercial identity, or add to or remove anything from them, so the goods remained the same as purchased. The tax demand treating them as processed commodities therefore could not stand, and the application was allowed.

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Issues: Whether affixation of the applicant's brand stickers on television sets purchased and resold amounted to "processing" under section 2(b) of the West Bengal Sales Tax Act, 1954, so as to attract tax on the transaction as a processed commodity.

Analysis: The applicable test for "processing" was taken to require some change in the commodity as a result of an operation performed on it. Mere affixation of stickers of the applicant's brand name on the television sets did not alter the sets or bring about any change in their commercial identity. The sets remained the same goods as purchased, and there was no addition to or elimination from them. On that basis, the operation could not be treated as processing, and the same goods could not be subjected to a second point of tax under the Act.

Conclusion: The affixation of stickers did not constitute processing, and the tax demand based on that finding could not stand. The application was therefore allowed.

Ratio Decidendi: Processing under the West Bengal Sales Tax Act requires a real change in the commodity brought about by an operation on it; a mere label or sticker affixed without altering the commodity does not amount to processing.

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