TMI Blog1963 (10) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee is a dealer in linseed oil, which is taxable at the point of sale by its manufacturer. It buys oil-seeds and gets them crushed at the mill of another person installed in his premises. The assessee has no mill and does not get oil-seeds converted into oil at its own premises. It pays the owner of the mill his charges for the labour of crushing oil-seeds into oil, brings linseed oil to its premises and sells it. The question is whether it is a manufacturer of linseed oil or not. The Judge (Revisions) answered it in the affirmative observing: "If the assessees had employed a labourer for crushing oil-seeds at their own place they would have been undoubtedly manufacturers of the oil, not because they themselves produced the oil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd if he gets oil-seeds crushed into oil through a servant or agent the law regards him as having done the crushing himself. If he himself crushes oil-seeds into oil he would undoubtedly be the manufacturer and when the law regards him as the actual crusher when he gets the crushing done by a servant or agent, it means that the law regards him as the manufacturer. The owner of the mill does not do any business in oil and does not crush oil-seeds into oil in order to deal in it; his business is not to sell oil but to let out on hire his mill and the production of oil from oil-seeds is only an incidental result of his letting out his mill to the assessee. When he did not own the oil-seeds he could not be the manufacturer of the oil produced b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the assessee is the manufacturer though it only caused oil to be produced instead of producing it itself. In determining whether or not a person is a manufacturer the Court first ascertains what his business consists in and then whether or not that business is manufacture. And everyone who manufactures is not a manufacturer; the manufacture may be merely incidental to another business; thus a farmer who makes articles from his produce undoubtedly manufactures them but is not a manufacturer because his business is to produce the raw material and the manufacture is not in his case a business by itself but only an incident to his farming: see In re Chandler cited in 55 C. J. S. at page 673. Further support for the view that we take is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined in the English Act but the definition does support the view that we take of the meaning of "manufacturer" as used in the U.P. Sales Tax Act, e.g., that a manufacturer must carry on the business of producing oil from oil-seeds; his business, as we said earlier, is that of hiring out his mill to anybody who wants any crushing to be done on it. Coming to the second question it has been conceded by counsel that the answer must be in the affirmative in view of the decision of this Court in Chandausi Oil Mills v. Sales Tax Commissioner [1961] 12 S.T.C. 310. Our answers to both questions are in the affirmative. We direct that copies of this judgment under the seal of the Court and the signature of the Registrar shall be sent to the Judge (Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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