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TMI Blog1981 (8) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... adesh General Sales Tax Act, 1958, at the instance of the Commissioner of Sales Tax, Madhya Pradesh. The question referred to us for our answer is as under: "Whether, under the facts and circumstances of the case, the Tribunal was justified in holding that extraction of and collection of boulders does not amount to manufacture?" 2.. The assessee, M/s. Pannalal Fundilal of Dewas had taken a contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took the view that the assessee was not liable to pay any sales tax because the collection and extraction of boulders does not amount to manufacture as defined by section 2(j) of the Act. Consequently, having regard to the turnover the liability to pay sales tax will not arise under section 4(5)(b) of the Act. Thereafter on an application at the instance of the Commissioner of Sales Tax, this refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act at the relevant time stood as under: "4. (5)(b) In relation to a dealer who manufactures any goods other than curd and cooked food including sweets and sweetmeats, mishri, batasha, chironji, shrikhand, rabadi, doodhpak but excluding ice-cream, kulfi, ice-candy, non-alcoholic drinks containing ice-cream, cakes, pastries, biscuits, chocolates, toffees, lozenges and peppermint drops.-(Ten thous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be transformation; a new and different article must emerge having a distinctive name, character or use.'" So also in Commissioner of Sales Tax, U.P. v. Harbilas Rai & Sons [1968] 21 STC 17 (SC), their Lordships of the Supreme Court observed as under: "In our view, the word 'manufacture' has various shades of meaning, and in the context of sales tax legislation, if the goods to which some labour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew substance which is capable of being sold. In view of the principles laid down by the Supreme Court in the two decisions referred to earlier on the meaning of the word "manufacture" used as a verb, it has to be held that the assessee is not a manufacturer. 5.. In view of the aforesaid discussion, we answer the question, referred to us, in the negative. The assessee shall get the costs of this r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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