TaxTMI 
TaxTMI 
1975 (2) TMI 102
X X X X Extracts X X X X
X X X X Extracts X X X X
....d, after repairing the leakages, dents, etc., in the old drums, reselling the same. During the assessment periods from 1st January, 1960, to 31st March, 1960, 1st April, 1960, to 20th October, 1960, and 21st October, 1960, to 8th November, 1961, respectively, the respondents were assessed by the Sales Tax Officer concerned on the basis that they were manufacturers in respect of the aforesaid drums repaired and sold by them. The respondents appealed against these decisions to the Assistant Commissioner of Sales Tax. In regard to this question the appeals were dismissed, although on certain other matters, with which we are not concerned, the appeals were partly allowed. The respondents then filed second appeals before the Sales Tax Tribunal. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat as the respondents reconditioned the old drums purchased by them, they must be held to be manufacturers. It was submitted by him that the activity of reconditioning would amount to "altering" the said drums. In this regard, it must be clarified that although the word "reconditioning" has been used in the question referred to us, a plain reading of the whole question as well as the facts set out in the judgment of the Tribunal make it clear that all that the respondents were doing was that they purchased old drums and after repairing the leakages, dents, etc., resold the same. It was submitted by Mr. Naik that the said repaired drums were really a different commodity from the old drums purchased by the respondents. It was submitted by hi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....w that the ratio of the decided cases shows that for an activity to amount to manufacture it must result in a different commercial article or commodity. It must not be a commodity which is commercially the same as it was before the activity was applied to it. In that case, we have pointed out that the test in all cases is to ascertain whether the result is commercially a different commodity and it is irrelevant whether this result is produced by a mechanical or chemical process or otherwise. Even under the very wide definition of "manufacture" to be found in clause (17) of section 2 of the said Act the various activities set out therein must result in a different commercial commodity in order that such activities may amount to manufacture o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s a tax primarily on the sales of goods and subsidiarily on the purchases of goods. The said Act is a piece of fiscal legislation, whereas the Factories Act is a piece of social welfare legislation, and it would be highly dangerous to interpret the definitions of terms in a fiscal statute in the light of the definitions or interpretations given to similar terms in a social welfare legislation. Apart from this, we may point out that the definition of the expression "manufacturing process" in section 2(k) of the Factories Act clearly specifies that the process of generating, transforming or transmitting power would amount to a manufacturing process, and hence on the very terms of that definition, transforming electrical energy from a high to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ime, ran as follows: "(1) There shall be levied a sales tax on the turnover of sales of goods specified in Schedule E at the rate set out against each of such goods in column 3 thereof, but after deducting from such turnover,- (i) sales of goods on the purchase of which the dealer is liable to pay purchase tax under section 13 or 14." The contention of the respondents was that the drums purchased by them were the same goods as the drums sold by them after repairs and, hence, they were entitled to deduct from their turnover of sales the amounts realised by the sale of the said drums, as they were liable to pay purchase tax in respect of their purchases of the said drums. We repeatedly asked Mr. Naik as to how from the point of view ....