1981 (8) TMI 211

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... section 44(1) of the Madhya Pradesh General Sales Tax Act, 1958, at the instance of the Commissioner of Sales Tax, Madhya Pradesh. The question referred to us for our answer is as under: "Whether, under the facts and circumstances of the case, the Tribunal was justified in holding that extraction of and collection of boulders does not amount to manufacture?" 2.. The assessee, M/s. Pannalal ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....then preferred, the Board of Revenue took the view that the assessee was not liable to pay any sales tax because the collection and extraction of boulders does not amount to manufacture as defined by section 2(j) of the Act. Consequently, having regard to the turnover the liability to pay sales tax will not arise under section 4(5)(b) of the Act. Thereafter on an application at the instance of the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... be prescribed."   Section 4(5)(b) of the Act at the relevant time stood as under: "4. (5)(b) In relation to a dealer who manufactures any goods other than curd and cooked food including sweets and sweetmeats, mishri, batasha, chironji, shrikhand, rabadi, doodhpak but excluding ice-cream, kulfi, ice-candy, non-alcoholic drinks containing ice-cream, cakes, pastries, biscuits, chocolates,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....manipulation. But something more is necessary and there must be transformation; a new and different article must emerge having a distinctive name, character or use.'" So also in Commissioner of Sales Tax, U.P. v. Harbilas Rai & Sons [1968] 21 STC 17 (SC), their Lordships of the Supreme Court observed as under: "In our view, the word 'manufacture' has various shades of meaning, and in the contex....