TaxTMI 
TaxTMI 
1962 (11) TMI 28
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....pondents also sold old motor-cars and scrap. The respondents applied for registration on 11th July, 1955, as by that date, according to them their turnover had exceeded Rs. 25,000. The Sales Tax Officer in his order dated 11th July, 1955, took the view that the respondents were liable as dealers who processed goods with effect from Ist April when their turnover was taken to have exceeded Rs. 10,000. The matter went in appeal before the Assistant Collector of Sales Tax who set aside the assessment by his order dated 9th July, 1956. Thereafter the Additional Collector of Sales Tax in exercise of his powers of revision, by his order dated 19th May, 1958, held that the respondents were dealers who processed goods and restored the assessment ord....
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....of all purchases made during- (a) * * * * (b) the year commencing on the 1st April, 1954, has exceeded or exceeds- (i) * * * * (ii) in the case of a dealer who produces, collects, extracts, manufactures or processes any goods, Rs. 10,000, provided that the value of the goods produced, collected, extracted, manufactured or processed during the said period is not less than Rs. 2,500; shall be liable to pay the tax under this Act on his turnover of sales and his turnover of purchases made on or after the appointed day." The question that we have to determine is whether it could be said that the respondents in this case have processed any goods or produced or manufactured any goods. The term "process" has been used in the section....
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.... which appears at page 704, runs as under: "This conversion of a commodity into a different commercial commodity by subjecting it to some processing, is consumption within the meaning of the Explanation to Article 286 no less than the final act of user when no distinct commodity is being brought into existence but what was brought into existence is being used up." It is further stated as follows: "We think it proper and reasonable to say that whenever a commodity is so dealt with as to change it into another commercial commodity there is consumption of the first commodity within the meaning of the Explanation to Article 286." These observations of the Supreme Court do not much assist us in determining the meaning of the expression "wh....
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....s" refers to the subjecting of any goods to a treatment or process adopting the language of Webster's New World Dictionary. It cannot be said in the present case that when parts of a motor-car are removed so that they may be sold as spare parts, goods have been subjected to a treatment or process. The act of dismantling some parts of a motor-car cannot be treated as the processing of any goods within the meaning of the said section. In the result, our answer to the first question is in the negative. That brings us to the second question whether it could be said that any goods are produced or manufactured when some parts from a car are taken out therefrom. The learned Advocate-General very fairly has not urged before us that any goods are ma....
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....chaser of a secondhand motor-car who dismantles the same for the purpose of obtaining spare parts therefrom. The second case to which reference has been made is the one reported in VI Sales Tax Cases, page 30 (State of Madhya Pradesh v. Wasudeo). In that case a person was convicted under section 24(1)(a) of the C.P. and Berar Sales Tax Act, 1947, for dealing in timber cut from Government forests without holding a registration certificate. It was urged that he only cut the trees and made them in a transportable form and that he could not be said to be a dealer, who manufactured or produced goods within the meaning of section 2(1)(a) of that Act. It was found that he had made the cut trees into logs or rafters and sold them as such. After ....