1963 (10) TMI 19

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....ible oil within the meaning of the notification dated 8th June, 1948, issued under the U. P. Sales Tax Act? " The assessee is a dealer in linseed oil, which is taxable at the point of sale by its manufacturer. It buys oil-seeds and gets them crushed at the mill of another person installed in his premises. The assessee has no mill and does not get oil-seeds converted into oil at its own premises. It pays the owner of the mill his charges for the labour of crushing oil-seeds into oil, brings linseed oil to its premises and sells it. The question is whether it is a manufacturer of linseed oil or not. The Judge (Revisions) answered it in the affirmative observing: "If the assessees had employed a labourer for crushing oil-seeds at their own ....

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....a manufacturer it is not necessary that the person himself must manufacture. Qui facit per alium facit per se and if he gets oil-seeds crushed into oil through a servant or agent the law regards him as having done the crushing himself. If he himself crushes oil-seeds into oil he would undoubtedly be the manufacturer and when the law regards him as the actual crusher when he gets the crushing done by a servant or agent, it means that the law regards him as the manufacturer. The owner of the mill does not do any business in oil and does not crush oil-seeds into oil in order to deal in it; his business is not to sell oil but to let out on hire his mill and the production of oil from oil-seeds is only an incidental result of his letting out his....

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....erm ' manufacturer ' applies both to him who actually makes and to him who causes to be made. " This makes it clear that the assessee is the manufacturer though it only caused oil to be produced instead of producing it itself. In determining whether or not a person is a manufacturer the Court first ascertains what his business consists in and then whether or not that business is manufacture. And everyone who manufactures is not a manufacturer; the manufacture may be merely incidental to another business; thus a farmer who makes articles from his produce undoubtedly manufactures them but is not a manufacturer because his business is to produce the raw material and the manufacture is not in his case a business by itself but only an incident t....