TaxTMI 
TaxTMI 
1979 (10) TMI 77
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..... 2. The plaintiff-respondent let out the accommodation in dispute at a rent of Rs. 850/- per annum to the defendant who was doing the business of retreading of tyres in the said premises. The defendant defaulted in payment of rent. The plaintiff, therefore, sent one month's notice to the defendant terminating his tenancy. Thereafter, the plaintiff instituted a suit for recovery of arrears of rent and ejectment against the defendant. 3. The suit was resisted, inter alia, on the ground that the premises in dispute had been let out to him for manufacturing purposes, and in view of Section 106, Transfer of Property Act, therefore, the lease could be terminated by the landlady only by six month's notice expiring with the end of the year of te....
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....rocess, counsel has cited Commissioner of Sales Tax, U.P. v. Dr. Sukh Deo - (1969) 1 S.C.R. 710 ; Allenburry Engineers Pvt. Ltd. v. Ramakrishna Dalamia Ors. - (1973) 2 SCR. 257 ; State of Maharashtra v. The Central Provinces Manganese Ore Co. Ltd. - (1977) 1 S.C.R. 1002: North Bengal Stores Ltd. v. Member, Board of Revenue, Bengal - (1938-50) 1 S.T.C. 157 ; and an Australian case : Federal Commissioner of Taxation v. Jack Zinader Proprietary Ltd. - (1948-49) 78 C.L.R. 336. 6. The expression "manufacturing purposes" has not been defined in the Transfer of Property Act. It has, therefore, to be construed in its popular sense. According to the Permanent Edition of Words and Phrases, Vol. 26, `manufacture' implies a change but every change is ....
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....al in his arguments. 8. In Jack Zinader (ibid), a furrier company received from customers fur garments which had become too badly worn and damaged to be repaired, and, after removing the defective parts, remodelled, for those customers respectively by various processes, what was left into modern styles of coats, for capes, fur collars, fur coats and stoles having regard to the extent, shape and nature of the available materials. The materials used by the company in remodelling were, except about five per cent of the linings, confined to those available from the customer's garment. If new linings were required the customer supplied them. The question for decision before the High Court of Australia was whether fur coats, stole, capes and col....
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....length and fits more closely and usually is not fastened in front.......... "On the side of the taxpayer it is contended that these procedures do not change the identity of the garment but only some of its characteristics. The customer hands in a fur garment and takes away a fur garment. It is altered and renovated but it is still a fur garment; it is her fur garment, it is the fur garment she brought to the furriers. On the side of the Commissioner it is said that a different fur garment has been brought into existence. The old fur garment has been used only to provide the materials or some of them from which the new fur garment has been made. It is a thing of a different description both commercially and from the point of view of the wea....
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.... of the wearer. But in the instant case, by retreading an old tyre does not become a different entity nor acquires a new identity. The retreading process does not cause the old tyre to lose its original character. The broad test for determining whether a process is a manufacturing process, is whether it brings out a complete transformation for the old components so as to produce a commercially different article or commodity. This question as rightly emphasised by the learned Judges in Jack Zinader, is largely one of fact. In the case before us, all the courts below have concurrently answered this question in the negative. In our opinion, this finding of the courts below is unassailable. The retreading of old tyres does not bring into being ....