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TMI Blog1992 (12) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... d similar chemicals did not amount to manufacture?" Question (2). "Whether, on the facts and in the circumstances of the case, and on a correct interpretation of rule 43 of the Bombay Sales Tax Rules, 1959, the Tribunal was justified in holding that the applicant was not entitled to the set-off under that rule of taxes paid on the purchases of fumigants, insecticides and similar chemicals transferred to branches outside the State for fumigating and treating foodgrains in that State?" 2.. The facts are not in dispute. The Food Corporation of India ("FCI ") deals in foodgrains. The foodgrains are stored in godowns and warehouses to protect the same from deterioration and damage due to natural causes such as weather conditions or on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that the Tribunal did not take into consideration the definition of expression "manufacture" as given in section 2(17) of the Act, which is very wide and unrestricted and takes within its sweep the process of fumigation, etc., undertaken by the applicant. 5.. Section 2(17) of the Act reads as follows: "'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. 6.. This definition came up for consideration before the Supreme Court in the case of State of Maharashtra v. Shiv Datt Sorts [1992] 84 STC 497 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eted by the State, can be said to amount to manufacture and render the furniture sold a different item of goods from the furniture purchased. This clearly is not the intention of the Legislature. The purpose of section 8 is that, where substantially the goods purchased are resold, there should be a deduction of the turnover on which purchase tax has already been paid. This provision should be interpreted in a practical and workable manner. The mere fact that the words used in the definition of 'manufacture' are very wide should not lead us to so widely interpret them as to render the provision practically meaningless and so as to treat the goods sold as different merely because some slight additions or changes are made in the goods which ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e regarded as processing within the meaning of the proviso. ............It cannot however be said that in the preparation of the tea mixture there is any alteration in the goods. Undoubtedly by mixing up the different varieties of tea purchased by the assessees there resulted a mixture in which the individuality of the components was obscured, but that, in our judgment, is not alteration within the meaning of the Act. The alteration contemplated by the Legislature is some alteration in the nature or character of the goods." 7.. The Supreme Court observed that in the aforesaid cases though the words used by the statute, viz., "processed or altered in any manner after such purchase" were very wide, the High Court read down the scope of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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