1972 (8) TMI 112

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..... er section 44 of the M.P. General Sales Tax Act. The dealer purchases white cotton yarn and he dyes it into different colours and then sells the coloured yarn. Under section 2(r) of the Act the words "taxable turnover" have been defined and under section 6 of the Act sales tax is payable on the taxable turnover of a dealer. The relevant part of section 2(r) is as follows: " 'taxable turnover' in .....

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..... r consumes such goods in the manufacture of other goods for sale ........"This section, therefore, provides that in a case where sales tax is not payable under section 6, purchase tax would be payable upon the price at which the goods had been purchased by the dealer provided they are consumed in the manufacture of other goods for sale. 2.. The contention of the department in the present case, th .....

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..... late authority. But in the Board of Revenue the first contention of the dealer was accepted and the second contention was not decided because the dealer was held not liable to pay the tax as demanded by the department on the first contention. The Commissioner of Sales Tax then made an application for a reference to this court on the first question decided by the Board of Revenue. Upon that applica .....

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..... and includes any process or manner of producing or preparing any goods. It is quite clear that when uncoloured yarn is dyed, it is preparing dyed cotton yarn. The use of dyed cotton yarn is necessarily different from that of uncoloured yarn and a person, who wants dyed yarn will not be satisfied with undyed yarn. It cannot, therefore, be denied that this is a process of manufacture within the mean .....

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..... s not been referred to this court. This court cannot, therefore, go into that matter. However, when the answer to the question referred is returned to the Board of Revenue, the dealer may ask the Board to decide the question which it had found unnecessary to decide on the previous occasion, if that is open to the dealer according to law. 7. Our answer to the question referred to this court is th .....

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