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TMI Blog1992 (1) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... f by a common order. M/s. Shiv Datt Sons are dealers for "Exide batteries" while M/s. Vora Brothers are dealers for "Standard batteries". They purchase the batteries from the manufacturers and sell them. The question is whether they can be treated as having resold the same goods that they have purchased making them eligible for relief under section 8 of the Bombay Sales Tax Act, 1959. The above question arises for consideration in the following circumstances: The manufacturers sell to the assessees before us what are described as, "dry batteries without electrolyte". The batteries, when manufactured by the manufacturers, undergo a process known as "formation charge". In this process, the plates of. the battery are immersed in a solution of sulphuric acid and distilled water. The plates are connected together by a lead strip and then connected to the two terminals of a source of supply of direct current. This current has an electrolytic action on the plates. After this process is undergone, the plates are dried in the ordinary way. But even after drying, the plates are put in electrolyte and electric current is passed through the plates for a long time. It is not necessary h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) .......... and the word 'resale' shall be construed accordingly." (Underlining Here italicised. added) The word "manufacture" is also defined by the Act. Section 2(17) says: "'Manufacture", with all its grammatical variations and cognate expressions, means producing, making, extracting, altering, ornamenting, finishing or otherwise processing, treating, or adapting any goods; but does not include such manufactures or manufacturing processes as may be prescribed." Rule 3 deals with the prescriptions under the second part of section 2(17). This rule refers to various processes such as the dyeing, bleaching and printing of pure silk cloth; the roasting or grinding of coffee seeds; the blending of different varieties to tea; the cutting of paper from reels into reams; the preparing of butter from cream or ghee from butter; the rolling of bidis by hand; and subjecting the goods specified in any entry in Schedule B to any process or doing anything to them which does not take them out of the description thereof in that entry. On behalf of the State of Maharashtra it is strongly urged that in view of the definitions of "resale" and "manufacture" contained in section 2 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the dealers are practically unfit for the purpose for which they are eventually sold unless they undergo this process of recharging. Having regard to the fundamental importance of this process rendering the goods sold by the respondents marketable, he submits that this is a case which is clearly governed by the special definition in section 2(17) read with section 2(26) of the Act. Prima facie, this argument looks very attractive. But, on careful consideration, we are of the opinion that the terms of section 2(17) should not be given such a wide interpretation. If such a wide interpretation is given there may be very absurd results flowing as a consequence thereof. For instance, the definition includes the word "ornamenting". If a dealer purchases certain goods and merely adds some decorative material thereto, according to the State's interpretation, there will be a "manufacture". For instance, if a car is purchased and some lights or some special gadgets are added thereto, the interpretation will result in rendering the resale of the same car the resale of a different commodity. Again, if a piece of furniture is sold in a dismantled condition and the distributor puts th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, the goods produced by the manufacturers as well as the goods sold by the respondents are one and the same, viz., batteries falling under entry 58. It is not as if the assessee has purchased dead batteries and resurrected them. The batteries purchased by the respondents are batteries in good condition. The only thing is that they do not contain the electrolyte element which has to be added. Also some charging is done lest the charge induced earlier should have worn off due to efflux of time. But the electrolyte was there earlier and its removal is only for the purpose already mentioned. The plates had also been charged earlier. Nothing is done to the goods afresh which had not been already done. The process is somewhat akin to the polishing of vessels and utensils or articles of furniture before sale. It is very difficult to say, in this situation, that the process applied is a process contemplated by the definition of manufacture in section 2(17). The decision in [1975] 35 STC 493 (Bom) in the case of Dunken Coffee Manufacturing Co. referred to on behalf of the State of Maharashtra dealt with a different set of facts but at page 499 there is reference to an earlier dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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