Tea blending is not manufacture where no new commercial commodity emerges under the U. P. Trade Tax Act.

A restricted construction of the exhaustive definition of "manufacture" in Section 2(e-1) of the U. P. Trade Tax Act, 1948 led to the conclusion that blending and packing tea for sale does not amount to manufacture. The process of mixing different teas did not create a new commercial commodity or materially alter the nature or character of the goods. The discussion distinguished cases involving products requiring specific processing that results in commercially different goods, and treated tea blending as mere preparation for sale rather than manufacturing activity.

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Issues: Whether blending and packing of tea amounts to "manufacture" within the meaning of Section 2(e-1) of the U. P. Trade Tax Act, 1948.

Analysis: The definition of "manufacture" in Section 2(e-1) is exhaustive and uses the expressions producing, making, mining, collecting, extracting, altering, ornamenting, finishing or otherwise processing, treating or adapting any goods. The provision does not employ expansive language and therefore requires a restricted construction. On the facts, the assessee only blended different types of tea and sold the resultant tea in the market. Mere mixing of tea for sale as tea did not bring about a new commercial commodity or any change in the nature or character of the goods. The factual setting was held to be closer to the line of authority treating tea blending as not amounting to manufacture, and distinguishable from cases involving commercially different contracted products requiring a specific processing exercise.

Conclusion: Blending and packing of tea does not amount to manufacture under Section 2(e-1) of the U. P. Trade Tax Act, 1948, and the issue was answered in favour of the assessee.

Final Conclusion: The revenue's challenge failed, and the assessment orders could not be restored.

Ratio Decidendi: A mere process of blending tea for sale, without resulting in a new commercial commodity or a material alteration in the nature or character of the goods, does not constitute manufacture under an exhaustive statutory definition.

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