1972 (8) TMI 112

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....r of a dealer. The relevant part of section 2(r) is as follows: " 'taxable turnover' in relation to any period means that part of a dealer's turnover for such period which remains after deducting therefrom- (i) * * * (ii) sale price of goods other than those mentioned in sub-clauses (i) and (iv) of this clause, which have been purchased otherwise than in the course of inter-State trade or commerce from a registered dealer............ * * *   Therefore, on the sale price of yarn which this dealer purchases from a registered dealer and then sells the same, sales tax is not payable under section 6. Under section 7 of the Act purchase tax is payable by "every dealer who in the course of his business purchases any taxable goo....

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.... the dealer was held not liable to pay the tax as demanded by the department on the first contention. The Commissioner of Sales Tax then made an application for a reference to this court on the first question decided by the Board of Revenue. Upon that application the following question had been referred to this court: "Whether in the facts and circumstances of the case, dyeing of white yarn is 'manufacture' within the meaning of section 2(j) of the. M.P. General Sales Tax Act, 1958?" 4.. The word "manufacture" has been defined by section 2(j) of the M.P. General Sales Tax Act as follows: " 'manufacture' includes any process or manner of producing, collecting, extracting, preparing or making any goods and in respect of trees which have....