Processing of manganese ore for ferro-manganese stays within electricity duty classification under the statutory scheme.

Manganese ore is a mineral, and processing it to produce ferro-manganese remains within the statutory scheme governing electricity duty. The Court treated the petitioner's activity as processing of a mineral under the M.P. Electricity Duty Act, 1949, including Explanation (b) to Part B of Section 3, and held that the resulting alloy did not take the activity outside the duty classification. The challenge to the deemed-mine classification for higher electricity duty therefore failed, and the declaration sought was denied.

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Issues: Whether ferro-manganese is outside the definition of 'mineral' and 'mine' under the M.P. Electricity Duty Act, 1949, and whether the petitioner's classification as a deemed mine for levy of higher electricity duty is ultra vires.

Analysis: Manganese ore is a mineral, and the activity carried on by the petitioner involves processing of that mineral, after which ferro-manganese comes into existence as an alloy. The activity of processing manganese is specifically covered by the statutory scheme governing electricity duty, including explanation (b) appended to Part B of Section 3. On that basis, the classification adopted for the purpose of electricity duty was not arbitrary or illegal.

Conclusion: The challenge to the classification failed. Ferro-manganese production from manganese ore remained within the scope of the duty provisions, and the petitioner was not entitled to the declaration sought.

Ratio Decidendi: Where the statutory scheme treats processing of a mineral as a taxable activity, the subsequent emergence of an alloy does not take the activity outside the ambit of the electricity duty classification.

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