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TMI Blog1984 (1) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... o carried on sale of brass scrap. After 31st May, 1975, brass scrap was not taxable except in the case of sale by a manufacturer. The assessing authority treated the assessee as manufacturer after 31st May, 1975, and therefore held that the sales of scrap after 31st May, 1975, in the assessment year 1975-76 and during the year 1976-77 were liable to tax. The authority determined the taxable turnover for this commodity for the period after 31st May, 1975, and created a demand of sales tax. The assessee filed two appeals, one for the assessment year 1975-76 and the other for the assessment year 1976-77. In these appeals the contention of the assessee before the appellate authority was that it was purchasing old condemned utensils and selling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finition of "manufacture" as contained in clause (e-1) of section 2 of the Act. The learned Standing Counsel has urged that the definition of the term "manufacturer" is a wide one and "collecting" is also to be deemed "manufacture" the act of the assessee in collecting old and condemned utensils from his customers could squarely fall within the definition of the term "manufacture" and the assessee would be deemed to be a manufacturer in relation to sale of old and condemned utensils. The definition of the term "manufacture" reads: "(e-1) 'manufacture' means producing, making, mining, collecting, extracting, altering, ornamenting, finishing or otherwise processing, treating or adapting any goods; but does not include such manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which it received them from its customers against sale of utensils. The dictionary meaning of the word "manufacture" is to transform or fashion raw materials into a changed form for use. A new and different article must emerge having a distinctive name, character or use. But in the Act the term "manufacture" has been given an artificially extended meaning which is much wider than the common notion of the word "manufacture". The term "manufacture" has been defined in section 2(17) of the Bombay Sales Tax Act. The definition has striking similarity with the definition in section 2(e-1) of the Act except that words mining, collecting, do not appear in it. The Bombay High Court considered the definition of the term "manufacture" in se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring out something. If nothing has been produced, no new thing has been brought out, then an item cannot be said to have been manufactured. It was open to the legislature to give an artificial meaning to the word 'manufacture'. But that did not result in altering the basic concept of taxable event which arises by coming into being of different or new commodity and not by the inclusion of the word 'process' in 'manufacture'." The word "collecting" occurring in the term "manufacture" is not to be understood in the wide sense in which the learned Standing Counsel would like it to be understood. The definition of the term "manufacture" enumerates various stages or steps in the process of producing a new or a distinct commercial commodity. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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