9911796707
TMI Blog1969 (1) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... luding cereals and pulses, and with effect from such date, as may be notified by the State Government in that behalf. By Notification No. ST7122/X-900 (16)-64 dated 1st October, 1964, issued under section 3-D(1) the State Government notified that with effect from 1st October, 1964, the turnover of first purchases in respect foodgrains, including cereals and pulses, would be liable to tax under section 3-D at 1.5 paise per rupee. The petitioner alleges that arhar ki dal was purchased by the dal mills and after it was cleaned and broken down into smaller particles of dal he purchased the broken down dal from the dal mills. The contention of the petitioner is, as it was before the Sales Tax Officer, that the dal purchased by him is essentially ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommodity different from the original arhar dal. It is admitted between the parties before us that the processes described by the Assistant Commissioner (Judicial) also take place in the case of the dal purchased by the petitioner. The petitioner points out that chhilka and chuni represent the outer husk or covering of the grain, and kutta is the name given to the occasional grain of dal which is too hard to be broken down. The petitioner also says that zarda, khanda, turra and dal are essentially the same in nature and that one is distinguished from the other only by the size of the dal particles. It is said that zarda consists of the smallest dal particles while the dal consists of the biggest particles. That is not disputed by the Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l difference between "processing" and "manufacturing". The Supreme Court said: "According to the learned counsel 'manufacture' is complete as soon as by the application of one or more processes, the raw material undergoes some change. To say this is to equate 'processing' to 'manufacture' and for this we can find no warrant in law. The word 'manufacture' used as a verb is generally understood to mean as 'bringing into existence a new substance' and does not mean merely 'to produce some change in a substance', however minor in consequence the change may be. This distinction is well brought about in a passage thus quoted in Permanent Edition of Words and Phrases, Volume 26, from an American judgment. The passage runs thus: '"Manufacture" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... involve a vital change in the process of manufacture during which the scrap iron lost its identity and became a new marketable commodity. We may refer to Tungabhadra Industries Ltd. v. Commercial Tax Officer[1960] 11 S.T.C. 827., where the Supreme Court held that hydrogenated groundnut oil remained groundnut oil, even though it was put through a process of hydrogenation resulting in a chemical change, which brought about the hardening of the oil. It continued to be the same edible fat that it was before the hardening, and its nutritional properties continued to be the same. We are of opinion that the dal purchased by the petitioner cannot be said to be a commodity essentially different from the arhar dal purchased by the dal mills and ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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