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TMI Blog1995 (1) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... nce a commercially different commodity and the activity did not amount to "manufacture" within the meaning of sub-section (17) of Section 2 of the Bombay Sales Tax Act, 1959?" 2.The assessee deals in cassette-tapes. On 25th August, 1978, he purchased 1050 pieces of C-60 (red) cassette-tapes at the rate of Rs. 10/- per piece from one M/s. Teisco Electronics on payment of sales tax at the rate of 15 paise in a rupee. These cassettes were then given by the assessee to one M/s. Oriental Melodies for recording songs and programmes for which a sum of Rs. 5/- per cassette was charged by the said concern. From these cassettes, 35 cassettes with the pre-recorded songs and programmes were sold to one M/s. Bharat Electronics Corporation as per bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove contentions of the assessee and held that by reason of the activity of recording songs and programmes on the blank cassette tapes, no physical change took place in the tapes, and the tapes, even after recording, remained tapes. No new commercially different commodity came into existence. It, therefore, held that the activity of recording songs and programmes on blank cassettes did not amount to "manufacture". Hence, this reference at the instance of the revenue. 4.We have carefully considered the submissions of the parties. There is no controversy in regard to the nature of the activity carried on by the assessee which comprises; inter alia, of purchasing blank cassette tapes, getting songs and programmes recorded thereon, and selling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar is purchased and some special gadgets are added thereto, the interpretation will result in rendering the resale of the same car the resale of a different commodity. Again, if a piece of furniture is sold in a dismantled condition and the distributor puts the parts together and sells it, the definition, if construed as widely as interpreted 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 Supreme Court emphasized the necessity of interpreting the expression "manufacture" in a practical and workable manner and observed that the mere fact that the words used in the definition of "manufacture" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was given, it might lead to impractical consequences. The ratio of the above decision, in our opinion, squarely applies to the facts of the present case. Applying the same, it is difficult to hold that the activity of recording songs on blank cassettes for making them marketable would amount to manufacture. It can more appropriately be regarded as "processing". 5.The difference between "processing" and "manufacture" is by now well-understood and well recognised. "Processing" means subjecting a commodity to a process or treatment so as to develop it or make it fit for market. With each process, the original commodity undergoes a change. But it is only when the change takes the commodity to a point where it can be no longer regarded as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prawns and lobsters are the result of subjecting raw shrimps, prawns and lobsters to a certain degree of processing and held that even so they continued to possess their original character and identity notwithstanding the process undertaken on them to make them fit for the table. It was, therefore, held that processing of prawns for making them fit for the market is not process of manufacture. 6.The ratio of the above decisions is clear that every process undertaken by the assessee on the goods to make them fit for the market for improving their marketability does not amount to process of manufacture. The legal position that emerges from the decisions referred to above and various other decisions can be summed up thus : (i) Manufacture im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t name and mark to make them different commercial commodity in the market to be purchased as such on account of its name or title. We do not propose to deal with that aspect of the matter as it would be academic in the present case. So far as the case before us is concerned, it is clear that the process undertaken by the assessee did not in any manner result in the emergence of any new commercial commodity and hence, it cannot be said that by recording songs on the cassette tapes, the assessee manufactured anything. In that view of the matter, we are of the clear opinion that Tribunal was correct in holding that the activity of recording songs and programmes on blank cassette tapes did not bring into existence a commercial commodity differe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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