TMI Blog1951 (9) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... remains is boiled by him in order to prevent its deterioration. A certificate of registration was issued to the applicant in respect of his business on 11th March, 1949, but his liability to pay the sales tax was ordered to begin from 1st April, 1948. The total butter purchased by him in the financial year 1948-49 was worth Rs. 780-2-6. The applicant says that the quantity which he had boiled at the end of the day was very negligible and might not be worth more than a few rupees in the aggregate. The Sales Tax Officer, however, held that the applicant becomes a processor in consequence of the ghee which he produced out of the butter remaining unsold, and as his total turnover (inclusive of the price of the ghee made from the butter) co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... combined with his other turnover falling under Section 5(1)(c) of the Act so as to make him liable as processor for the entire amount under Section 5(1)(b). Taking first the question whether the boiling of the butter into ghee is a process for the purposes of Section 5(1)(b) of the Bombay Sales Tax Act, we shall first mention that the so-called pro- cess consists merely of putting the butter into a pot and placing it on fire without adding anything to it and that when it is boiled the sour substance which leads to its deterioration settles down at the bottom and the pure liquid above is the ghee which later solidifies when it cools down. The question is whether this mere boiling can be treated as a process. The Bombay Sales Tax Act nowhe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess and (e) a process of manufacture. In this case the only thing done is the boiling. There is no series of actions, no continuous operation or treatment and no chemical process much less a process of manufacture. As we have already stated nothing is added to the butter to obtain the ghee. It is what may be called a method of clarification. In fact the word "ghee" is rarely used in English books and instead the words "clarified butter" are used. This explains its meaning. We may say that if we were to regard this simple boiling as processing much more so would be the making of tea. In fact when- ever anything is done to an article we shall have (according to the view of the Sales Tax Department) to treat it as being processed. We think ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rter a general turn- over of Rs. 10,000 including imports to the extent of Rs. 1,000 or more is sufficient to make the dealer liable for sales tax. The Legislature would have made similar provision in the case of manufacturers or pro- cessors if it wanted to assess them at a lower limit arrived at by adding the turnover as manufacturer or processor to his general turnover. In the absence of it we must hold that the Legislature did not so intend. This is a taxing enactment and the principle is that the tax must be imposed in a clear and unambiguous language and that if there be any doubt the benefit of that doubt must go to the subject. If we bear this principle in mind we think there is no alternative but to hold that the view of the Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, a person sells some goods which are locally obtained and some which are imported, the moment the total sales exceed Rs. 5,000 he becomes liable to pay tax even though the actual value of the imported goods sold by him is, say, only an anna." The Division Bench agreed with Mudholkar, J., and acquitted the applicant. We may say that the same curious result follows in the case before us where a small turnover of a man as processor is sought to be combined with his general turnover. Both Mudholkar, J., and the Division Bench negatived such an interpretation and held that the two turnovers cannot be so combined. Following this ruling, we have to reject the interpretation adopted by the Collector of Sales Tax. We will also respectfully invi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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