TaxTMI 
TaxTMI 
1995 (2) TMI 361
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion 2(17) of the Bombay Sales Tax Act, 1959 and it results into a different commercial commodity?" 2.. The assessee, M/s. Technova Graphic Systems, carries on the business of buying polyester films and selling the same after subjecting it to the process of lacquering. On November 26, 1987, the assessee made an application under section 52(1)(b) of the Bombay Sales Tax Act, 1959 ("the Act") to the Deputy Commissioner of Sales Tax (Admn.) seeking determination of the question whether subjecting the polyester film to the chemical process of lacquering amounts to manufacture within the meaning of section 2(17) of the Act. The contention of the assessee before the Deputy Commissioner was that the process of lacquering did not amount to manuf....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he order of the Tribunal and considered the rival submissions of the counsel for the parties. So far as the interpretation of the definition of "manufacture" contained in section 2(17) of the Act is concerned, it is now well-settled by the decision of the Supreme Court in State of Maharashtra v. Shiv Datt & Sons [1992] 84 STC 497 that only such of the processes referred to in the definition of "manufacture" given in section 2(17) of the Act and applied to the goods as are of such a character as to have an impact on the nature of the goods would amount to "manufacture". In the above decision, the Supreme Court made it clear that though the words used in the definition of "manufacture" were wide enough, limitation has to be put on the said wo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dity to a point where commercially it can no longer be regarded as the original commodity but instead recognised as a distinct article that manufacture can be said to take place. Where the commodity retains a continuing substantial identity through the processing stage, no manufacture can be said to have taken place. The principle that has to be applied in all such cases is whether a commercially different and distinct article has come into existence as a result of the processing of the original commodity. In other words, whether the article produced is regarded in the trade by those who deal in it as distinct in identity from the commodity involved in processing. 5.. We may now consider the facts of the present case in the light of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....film on the surface without any type of chemical change occurring in the film. Because of this these are also known as non-convertible coatings. As the drying is only a physical process the lacquers are soluble in the original solvents and can be removed very readily by the same solvents from the surface on which they are coated. Lacquering is a process of coating/covering a surface with a lacquer and does not involve any chemical process as the drying is only by evaporation of the solvents. Polyester film is absolutely insoluble in any commonly used lacquer solvents and as such remains totally unaffected and maintains its original characteristics after lacquering/coating with any coating solution. Polyester film is also ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... tests and particularly infra-red spectra of the coated and the film from which coating is removed confirm beyond doubt that the polyester film has not undergone any chemical change during the process of lacquering/ coating with solution containing some photosensitive chemicals and the process is only physical coating given to polyester film which retains all its original characteristics. The products under question are in no way different than a polyester film coated with adhesive in pressure sensitive tape or polyester film covered with coat of metallic aluminium and protected with a lacquer in case of metalised polyester film. On the basis of the results of examination conducted by me and my experience and knowledge in the field, I....