TMI Blog1976 (5) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... cubes out of such granules with the help of a power operated machine and sells such camphor cubes in the market with distinctive brand names of "Elephant, Moon and Arati". Originally, he had himself registered as a dealer under section 7 of the Bengal Finance (Sales Tax) Act, 1941 (hereinafter referred to as the Act of 1941). On his business turnover for the period November, 1955, to 30th June, 1958, the appellant was assessed to sales tax under section 11(2) of the Act of 1941. Such assess. ment was made on 9th February, 1959. The appellant, however, objected to such assessment on the plea that he deals exclusively in camphor, which is a drug as defined by the Indian Drugs Act and, as such, the Act of 1941 would have no application. Obviou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The appellant preferred an appeal under section 12 of the Act of 1954 and the Assistant Commissioner, Commercial Taxes, overruled the appellant's plea that he was not a dealer within the meaning of section 2(b) of the Act of 1954 and, as such, had no liability to pay any tax under the provisions thereof. But the Assistant Commissioner allowed the appeal on another point and directed reassessment. In overruling the appellant's claim that he was not a dealer, the Appellate Commissioner held: "Although I agree that the petitioner did not manufacture a new thing, but they can be regarded as a processor; the petitioner processed camphor granules into camphor cubes and sold the ultimate products under their distinct brand. Under the West Benga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overruled by the learned Judge in the trial court, who, for reasons given, affirmed the view taken by the Tribunals below that the appellant was a dealer within the meaning of section 2(b) of the Act of 1954 and, as such, had been rightly held to be liable to taxation under the provisions of the said Act. Aggrieved by the said decision of the learned Judge in the trial court, the appellant has preferred the present appeal. The appeal is being contested by the respondents. Mr. Burman, appearing in support of this appeal, has strongly contended that the appellant does not answer the description of a dealer as defined in section 2(b) of the Act of 1954, and that the learned Judge in the trial court misconstrued the said definition clause i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n it is so done with the help of a machine, there is no reason why it should not be held that the appellant had processed the thing before putting it to sale. It is not necessary that, in order to be processed, the thing must change its intrinsic character. The term "process" means, according to the Shorter Oxford English Dictionary, "a continuous and regular action or succession of actions, taking place or carried on in a definite manner; a continuous (natural or artificial) operation or series of operations". Beyond doubt the appellant undertakes such an action in making the camphor cubes out of camphor granules and, as such, must be said to have been processing the thing for the purpose of putting them up for sale. In our view, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld, however, be difficult to accept such a construction of section 2(b) of the Act of 1954. Such construction would entail giving a restrictive meaning to the term "process" to mean process for manufacturing; such a restricted meaning does not flow from the language used by the legislature. Such a construction of the term "process" as used in section 2(b) would not be in consonance with the context either. Anything processed for manufacture would naturally mean "manufacture", earlier used in the clause itself, and to accept the construction contended for by Mr. Burman would render the term wholly superfluous. Therefore, it cannot be said that the context in which the term "process" has been used calls for any restrictive interpretation sugg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T.C. 500., the point which arose for consideration was whether when the assessee sells tea after mixing teas of different varieties in appropriate proportion for the purpose of blending, it can be said that he was undertaking any processing within the meaning of the relevant statutory provisions then under consideration. The court held that the assessee was not undertaking any processing by merely mixing two varieties of tea while selling them. Such an act is widely different from the acts undertaken by the appellant now before us, who through a mechanical process makes camphor cubes out of camphor granules for selling such cubes with a distinctive brand name of its own. Here the thing undergoes a mechanical process before it acquires the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
