Processed stone remains the same commodity for sales tax when no distinct commercial identity emerges.

Under sales tax law, processed goods are taxable again only if processing produces a distinct commercial commodity with a separate identity. The text explains that the statutory concept of manufacture is broad and may include processing or alteration, but tax is levied on distinct goods, not merely on the substance from which they are made. Applying that principle, stone boulders crushed into gitti, stone chips and dust remain within the description of stone under the relevant notification, because the entry is wide enough to cover those forms and they do not become commercially different commodities. Accordingly, such crushed stone products are not separately taxable as new goods.

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Issues: Whether stone boulders crushed into gitti, stone chips and dust continue to remain stone for sales tax purposes under Entry 40 of the notification dated 7-9-1981, or whether different commercial commodities emerge so as to attract tax again.

Analysis: The definition of manufacture in Section 2(e-1) of the U.P. Sales Tax Act, 1948 is wide and includes processing and alteration, but sales tax is levied on the sale of goods of each distinct variety, not on the substance from which they are made. A subsequent levy is attracted only when a new commercial commodity with a different identity emerges. Where the goods retain their commercial identity despite processing, they do not become separately taxable merely because their form or size changes. On the language of Entry 40, stone is wide enough to include forms such as gitti, kankar and stone ballast, and those articles are not commercially different from stone boulders so as to justify a fresh levy.

Conclusion: Gitti, stone chips and dust remain stone for the purposes of the notification and are not separate commercial goods liable to be taxed again.

Final Conclusion: The departmental challenge failed because the crushed stone products were treated as falling within the existing taxable description of stone, and the dismissal of the appeal left the assessee's position undisturbed.

Ratio Decidendi: For sales tax, a processed article is taxable again only if it emerges as a distinct commercial commodity with a separate identity; mere change in form, size, or processing does not create a new taxable good when the statutory entry remains wide enough to include the product.

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