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TMI Blog1970 (8) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.. These are two references under section 44(1) of the M.P. General Sales Tax Act, 1958. The assessee is engaged in dehusking paddy and, after polishing it, converting it into rice, and converting other grains into dal, and thereafter selling them. The assessee was assessed to tax on the basis that this amounted to a process of manufacture and the assessee challenged the correctness of that dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r manufacturing processes as may be prescribed." It will be seen from this definition that even goods collection and then making them marketable amount to "manufacture" or even preparing the goods is defined as a process of manufacture. What the assessee does is to dehusk the paddy, polish the rice and then make it useful for human consumption and marketable. In respect of other grains, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter manufacture become entirely different and, therefore, a different article. He contended that this position was made clear by section 7 which states among other things: "and either consumes such goods in the manufacture of other goods for sale....." Process of manufacture, according to the learned counsel, relevant for the purpose would, therefore, be where the assessee consumes the origin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the sales tax department on this question was correct. 6.. Our answers to the questions referred are: (i) Paddy and other grains before dehusking are raw material as defined under section 2(1) of the Madhya Pradesh General Sales Tax Act, 1958. (ii) Dehusking of paddy into rice or of other grains into dal amounts to "manufacture" within the meaning of section 2(j) of the Madhya Pradesh Gene ..... X X X X Extracts X X X X X X X X Extracts X X X X
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