1981 (3) TMI 223

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....ax is not possible thereunder and, therefore, that provision was unenforceable?" The facts which have given rise to these references are that the respondents are a registered dealer and have also been certified by the Commissioner of Sales Tax for the purposes of entry 39 to Notification No. STA. 1059-(iii)-G-1 dated 28th December, 1959, issued under section 41(1) of the said Act as registered dealers who manufacture cotton fabrics of the type mentioned in the said entry. The respondents, however, did not themselves manufacture in its ordinary sense, that is, did not make cloth themselves. The respondents' business consists of buying grey cloth in the market and then dyeing and printing it and thereafter selling it in the market. They also....

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....ndents were manufacturers within the meaning of the said entry 39. Clause (17) of section 2 of the said Act defines the term "manufacture". The said definition is as follows: " 'Manufacture', with all its grammatical variations and cognate expressions, means producing, making, extracting, altering, ornamenting, finishing or otherwise processing, treating, or adapting any goods; but does not include such manufactures or manufacturing processes as may be prescribed." It is obvious that dyeing and printing would be a process carried out on cloth and would result in a new marketable commodity coming into existence (see Commissioner of Sales Tax v. Dunken Coffee Manufacturing Co.[1975] 35 S.T.C. 493. and Hiralal Jitmal v. Commissioner of Sales ....