2002 (11) TMI 112 - SC - VAT and Sales Tax

Manufacture - Gitti - Held that - crushing of boulders into small size gitti does not amount to process of manufacture.

Summary

Issues:
Interpretation of the term 'manufacture' under Section 2(17) of the Bombay Sales Tax Act, 1959.

Analysis:
The case involved a question referred by the Maharashtra Sales Tax Tribunal to the High Court regarding whether the crushing of boulders into smaller sizes, known as 'Gitti', amounts to manufacture under Section 2(17) of the Bombay Sales Tax Act. The assessee purchased boulders and crushed them into 'Gitti', seeking clarification on the manufacturing process. The Deputy Commissioner considered the conversion as 'manufacture', but the Tribunal disagreed. The High Court, relying on precedents, held that the process did not constitute 'manufacture'. The appellant challenged this view. The definition of 'manufacture' under Section 2(17) includes various processes like producing, making, or treating goods, but it requires the emergence of a new commercial commodity. The Supreme Court cited a similar case under the Uttar Pradesh Sales Tax Act, where crushing boulders did not amount to 'manufacture'. The Court agreed with this precedent, finding no fault with the High Court's decision. Another judgment was distinguished as not applicable. Consequently, the civil appeal was dismissed without costs.