Fresh flower bouquet remains natural flowers and is not manufacture when mere arrangement causes no change in character.

A bouquet of fresh flowers was treated as natural flowers under Schedule A, entry 36, because a simple arrangement or tying together of fresh flowers did not create a distinct commercial commodity. The residuary Schedule C, Part II, entry 152 was therefore inapplicable. The Court also held that preparing such a bouquet did not amount to manufacture under section 2(17), since manufacture requires a real change in the nature, character, or utility of the goods, which was absent on the facts found. The bouquet was thus not taxable as a manufactured commodity.

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Issues: (i) Whether a bouquet of fresh flowers falls within Schedule A, entry 36 of the Bombay Sales Tax Act, 1959 as natural flowers, or within the residuary Schedule C, Part II, entry 152; (ii) Whether preparing a bouquet of fresh flowers amounts to manufacture under section 2(17) of the Bombay Sales Tax Act, 1959.

Issue (i): Whether a bouquet of fresh flowers falls within Schedule A, entry 36 of the Bombay Sales Tax Act, 1959 as natural flowers, or within the residuary Schedule C, Part II, entry 152.

Analysis: The decisive question was whether a simple arrangement of fresh flowers changes their character into a different commercial product. The entry for natural flowers excluded only mahua flowers, and the invoice described the goods as a bouquet of fresh flowers. On the facts found, the bouquet remained an arrangement of fresh flowers and was not shown to be a distinct commercial commodity merely because the flowers were tied or arranged together.

Conclusion: The bouquet of fresh flowers was covered by Schedule A, entry 36 and was not taxable under the residuary entry.

Issue (ii): Whether preparing a bouquet of fresh flowers amounts to manufacture under section 2(17) of the Bombay Sales Tax Act, 1959.

Analysis: Manufacture under section 2(17) requires producing, making, altering, ornamenting, finishing, or otherwise processing goods in a manner that brings about a relevant change in their nature, character, or utility. A mere arrangement of cut or fresh flowers does not by itself create a new commodity or cause such a transformation. On the facts before the Court, the preparation of the bouquet did not satisfy the statutory concept of manufacture.

Conclusion: The activity of preparing a bouquet of fresh flowers did not amount to manufacture.

Final Conclusion: Both reference questions were answered in favour of the applicant, and the bouquet of fresh flowers was held not to be liable to tax as a manufactured commercial commodity on the facts proved.

Ratio Decidendi: A mere arrangement of fresh flowers, without a real change in their nature, character, or utility, does not amount to manufacture and does not convert natural flowers into a different taxable commodity.

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