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TMI Blog1967 (5) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 11 of the U.P. Sale Tax Act, 1948 (U.P. Act 15 of 1948), hereinafter referred to as the Act, by the Judge (Revisions), Sales Tax, U.P. Three questions were referred to the High Court but we are only concerned with the third question which reads: "Whether, in the circumstances and on the facts of the case, the sales made by the assessee were assessable to tax under section 2(h), Explanation II(ii)." The facts stated in the statement of the case are as follows: The respondents, hereinafter referred to as the assessees, were dealers in pig bristles at Kanpur. They were assessed to sales tax for the year 1948-49. The assessees sold pig bristles at London and contended that the sales made at London were not taxable as the bristles were n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1930, or any other law for the time being in force, the sale of any goods- (i) which are actually in Uttar Pradesh at the time when in respect thereof, the contract of sale as defined in section 4 of that Act is made, (ii) or which are produced or manufactured in Uttar Pradesh, by the producer or manufacturer thereof, shall, wherever the delivery or contract of sale is made, be deemed for the purposes of this Act to have taken place in Uttar Pradesh." The High Court, after setting out the facts, held that the assessees were not manufacturers. Desai, C.J., observed: "All that it does to the bristles bought from Kanjars does not amount to manufacturing. It does not result in the production of a commercially different article; what is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anjars and the form in which these are sold at London. In the second case, it was held that "a person who is engaged in the work of printing and dyeing textiles purchased by him and in the business of selling or supplying the printed and dyed material is a manufacturer within the meaning of the definition given in section 2(k) of the Madhya Bharat Sales Tax Act, 1950." There are some observations which do assist the appellant, for the High Court observed: "In common parlance 'to manufacture goods' means 'to bring goods into being'. 'To manufacture goods for sale' would, therefore, mean to bring into being something in a form in which it is capable of being sold or supplied in the course of business. In my opinion, to constitute 'manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material into different article for use. We cannot, therefore, accept this contention. Now coming to Civil Appeals Nos. 39 to 43 of 1965, the first additional point raised is that when iron scrap is converted into rolled steel it does not involve the process of manufacture. It is contended that the said conversion does not involve any process of manufacture, but the scrap is made into a better marketable commodity. Before the High Court this contention was not pressed. That apart, it is clear that scrap iron ingots undergo a vital change in the process of manufacture and are converted into a different commodity, viz., rolled steel sections. During the process the scrap iron loses its identity and becomes a new marketable commodity. The pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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