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TMI Blog1959 (7) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... . The applicants filed an affidavit before the Additional Col- lector in which it was stated that the mixing of different kinds of tea was done by hand, no machinery or chemical process for the purpose being employed and that, therefore, it should not be held that there had been any processing. 2.. In Chotalal Raghunathji v. The State of Bombay(1), it was held that the word " process appeared to have a wider connotation than the word "manufacture", and that the main thing which was necessary for holding a person to be a manufacturer was that he should, by some process or series of processes, make a certain kind of goods out of another or so alter or change the original thing or material as to make it into something which was recognised commercially as different from the original stuff. In the case of Motilal Ramchandra Oswal v. The State of Bombay(2), this Tribunal, however, held that the boiling of butter into ghee did not amount to processing. In our opinion, and also in view of the earlier decision, this view appears to be erroneous, and we, accordingly, overrule the decision in the latter case. Mr. N. A. Palkhiwala for the applicants, however, has argued that as the mixtures ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercially known as another and different article from the raw materials. All that is necessary is that the material should have been changed or modified by man's art or industry so as to make it capable of being sold in an acceptable form to satisfy some want, or desire, or fancy or taste of man". In our opinion these observations apply to processing also; and we think that it is not possible to hold that the mixing of different varieties of tea in this case does not amount to processing. It is also to be observed that the proviso to clause (a) of section 8 of the Act of 1953 not only speaks of the goods having been processed but also of (1) [1946] 1 S.T.C. 157. (2) [1957] 8 S.T.C. 325. their having been "altered in any manner" after the purchase. This latter expression seems to be wider in intention than the word "process". We have no doubt that the teas which were purchased by the applicants before being mixed or blended were "altered" within the meaning of the proviso. 3.. Mr. Palkhiwala also tried to make out a new case, namely, that a part of the goods in question was sold as orange pekoe, the original teas also having been called by the same name, so that the mixture, so fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the original ingredients in the market. We also referred to the proviso to clause (a) of section 8 of the Act of 1953, and held that the teas which had been purchased by the applicants before being mixed or blended had been altered within the meaning of the proviso. Mr. Palkiwala also tried to make out a new case, namely, that a part of the goods in question had been sold as orange pekoe, the original teas also having been called by the same name, so that the mixture, so far as that part of the goods was concerned, could not be said to have resulted in a separate or distinct article. We did not find that any attempt had been made to make out this case, which involved a question of fact, before the authorities below, and we, accordingly, did not allow Mr. Palkiwala to develop this case. 3.. The questions proposed by the applicants for reference are as follows: (a) Whether on the facts and in the circumstances of the case, the Tribunal had jurisdiction to entertain and decide the plea that the teas had been "altered" within the meaning of the proviso to section 8(a) of the Act when it was nowhere the case of the Department either before the Assistant Collector of Sales Tax, or the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased also having been called by the same name and only teas of the same variety grown on different plantations had been mixed together?" N. A. Palkhiwala, for the assessees. D. P. Madon, for the respondent. JUDGMENT SHAH, J.-Messrs Nilgiri Ceylon Tea Supplying Co. carry on busi- ness as dealers in tea in Bombay. They have been registered dealers under the Bombay Sales Tax Act, 1953. Messrs Nilgiri Ceylon Tea Supplying Co. who will be hereafter referred to as "the assessees" purchased diverse brands of tea and without the application of any mechanical or chemical processes mixed up the brands of tea purchased in bulk by them and sold the tea as tea mixture. The mixing, however, is not haphazard but according to the formula which was evolved by the assessees. In the assessment of sales tax the assessees claimed that the value of the tea purchased by them should be deducted from the turnover under section 8 of the Bombay Sales Tax Act, 1953. The Sales Tax Authorities did not accept the contention of the assessees having regard to the proviso to clause (a) of section 8 and did not allow deduc- tion for the value of the tea purchased out of the turnover. The Sales Tax Tribunal als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess 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 pasteu- rising, fruits and vegetables by sorting and repacking". In the present case, there has been nothing but a manual application of energy to the different quantities of tea purchased by the assessees in certain proportions so as to evolve a mixture of tea which was sold as tea mixture of the assessees. In our view, the quantities of tea pur- chased by the assessees cannot since the date of the purchases be regard- ed as processed within the meaning of the proviso to clause (a) of sec- tion 8 of the Act. There is not even application of mechanical force so as to subject the commodity to a process, manufacture, development, or preparation. The commodity has remained in the same condition. It is true that in the preparation of the tea mixture which is marketed, they may be some skill involved. But that, in our judgment, cannot be regarded as processing within the meaning of the proviso. It is urged on behalf of the sales tax department that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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