1970 (8) TMI 75

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....YAL, C.J.-The judgment in this case shall govern the disposal of Miscellaneous Civil Case No. 157 of 1969. 2.. These are two references under section 44(1) of the M.P. General Sales Tax Act, 1958. The assessee is engaged in dehusking paddy and, after polishing it, converting it into rice, and converting other grains into dal, and thereafter selling them. The assessee was assessed to tax on the ....

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....rocess or manner of producing, collecting, preparing or making any goods; but does not include such manufactures or manufacturing processes as may be prescribed." It will be seen from this definition that even goods collection and then making them marketable amount to "manufacture" or even preparing the goods is defined as a process of manufacture. What the assessee does is to dehusk the paddy,....

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....l contended that the idea of manufacture involves within itself the idea that the thing originally purchased must after manufacture become entirely different and, therefore, a different article. He contended that this position was made clear by section 7 which states among other things: "and either consumes such goods in the manufacture of other goods for sale....." Process of manufacture, a....

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....original identity and become different article, namely, dal. In this view of the matter, we think that the decision of the sales tax department on this question was correct. 6.. Our answers to the questions referred are: (i) Paddy and other grains before dehusking are raw material as defined under section 2(1) of the Madhya Pradesh General Sales Tax Act, 1958. (ii) Dehusking of paddy into....