TaxTMI 
TaxTMI 
1992 (9) TMI 44
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....nfirming the order of the Appellate Assistant Commissioner whereby he held that the assessee was entitled to exemption under section 5(1)(xxxii) of the Act in respect of his interest in the said firm ? " List is revised. None appears for the assessee. We have, therefore, heard only learned standing counsel for the Department. The opposite party is a partner in the firm, Messrs. Amjad Ali and Co., Meerut, which is said to be engaged in the manufacture and processing of tobacco. The Tribunal relying on the, order of the Appellate Assistant Commissioner found: "The process which the raw tobacco has to undergo till it reaches the final stage of sale to beeri merchants has been mentioned by the assessee in his submission to the Appellate Assis....
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....s Tax ( Registration and Turnover) Rules, 1957, which too did not define the word " processing ". The Supreme Court then adverted to Webster's Dictionary, which gives the following meaning of the word " process "( at page 130): "To subject to some special process or treatment, to subject (especially raw material ) to a process of manufacture, development or preparation for the market, etc., to convert into marketable form as livestock by slaughtering, grain by milling, cotton by spinning, milk by pasteurising, fruits and vegetables by sorting and repacking. " Considering the said definition, the Supreme Court held ( at page 131 ) : " Where, therefore, any commodity is subjected to a process or treatment with a view to its 'development or....
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....eration of crushing and separating stems and dust therefrom. Applying the principle enunciated by the Supreme Court, we hold that such operation carried on by the assessee would amount to processing within the meaning of section 5(1)(xxxii) of the Act. In Nilgiri Ceylon Tea Supplying Co. v. State of Bombay [1959] 10 STC 500, the Bombay High Court held that the different brands of tea purchased by the assessee could not be regarded as " processed " within the meaning of the proviso to clause (a) of section 8, because there was " not even application of mechanical force so as to subject the commodity to a process, manufacture, development or preparation " and the commodity remained in the same condition. The Supreme Court in Chowgule and Co. ....
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....by means of the mechanical ore handling plant, constituted processing of ore for sale within the meaning of section 8(3)(b) and rule 13. A similar view was taken by the Calcutta High Court in Mahabirprasad Birhiwala v. State of West Bengal [1973] 31 STC 628, in which it held that the transformation into powdered form of " whole " black pepper and turmeric purchased from the market on payment of tax does not amount to manufacture but involves an act of processing within the meaning of section 2(b) of the West Bengal Sales Tax Act, 1954. Following Chowgule's case [1981] 47 STC 124 (SC), the Gujarat High Court in CIT v. Lakhtar Cotton Press Co. (P.) Ltd. [1983] 142 ITR 503, held that the loose cotton in bulk quantity with higher density was, ....