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TMI Blog1986 (2) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... n judgment. 2.. The assessee was assessed as an unregistered dealer for the periods 18th October, 1970, to 31st March, 1971, and 1st April, 1971, to 16th March, 1972, respectively. These assessments were made by the Sales Tax Officer, A Ward, Unit IV, Bombay, on 8th March, 1976, under section 33(6) of the said Act. The assessee is a firm which started its business as a building contractor from 18th October, 1970. The turnover of the assessee exceeded the prescribed limit on 29th March, 1971. However, the assessee filed an application for registration under the said Act as late as 17th March, 1972. Thus there was a delay of about 11 months in filing the application for registration. The aforesaid Sales Tax Officer assessed the assessee to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le nor is it being marketed as a building material which can be purchased by any person desiring to use concrete as such and that any person who wishes to use concrete has to make the concrete at the site of the work. It seems to be the undisputed position that for the purpose of building construction cement, sand, metal and water are mixed in the requisite proportions as specified by the R.C.C. consultant or architect. This mixture is prepared at the site of construction for immediate use, because if any surplus concrete is left over at the end of the day, it would harden and rendered useless to the builder. In view of this evidence, the Tribunal took the view that the concrete mixture which was produced or prepared by the assessee could n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... either of sales or of purchases made during the period referred to therein exceeds the relevant limit specified in sub-section (4) of that section. Section 13 of the said Act deals with the levy of tax on purchases. The relevant portion of that section, as it stood at the material time, ran as follows: "13. Purchase tax Payable on certain purchases of goods from an unregistered dealer.-Where a dealer who is liable to pay tax under this Act purchases any goods specified in Schedule B, C, D or E from a person or a Government who or which is not a registered dealer, and- (a) uses them within the State in the manufacture of goods or in the packing of goods (whether manufactured by him or not), or (b)................................... then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto process or activity sought to be described as manufacture. It was submitted by him that as a result of the activity of mixing sand with cement, metal and water, a distinct commodity, namely, concrete mixture, came into existence, and in view of this, the assessee who carried on the said activity was liable to be taxed on the footing that he had manufactured concrete mixture. In support of this submission, Mr. Jetly placed reliance on the decision of a Division Bench of this Court in Famous Cine Laboratory & Studio Ltd. v. State of Maharashtra reported in [1975] 36 STC 104 to which one of us was a party. We are afraid this decision is hardly of any assistance to Mr. Jetly in his submission. The main point at issue in that case was whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he coffee powder when mixed with chicory powder might change in colour and odour, (3) that what was produced was a new mixture in which some of the original components might have been merged. The question was whether the assessee had carried on an activity which amounted to manufacture. In that case, the Division Bench referred to several decisions and inter alia cited with approval the observations of Das, J., in North Bengal Stores Ltd. v. Member, Board of Revenue, Bengal [1946] 1 STC 157. The relevant portion of the said observations runs thus: "'To manufacture goods' in common parlance means 'to bring goods into being'. To manufacture or produce goods for sale means to bring into being or to produce something in a form in which it will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmercially the same as it was before the activity was applied to it. In a given case, it may be that the ingredients are totally transformed and, in another given case, it may be that they undergo some change, alteration or transformation and yet retain their essential character and properties. The test in all cases, therefore, is to ascertain whether the result is commercially a different commodity and it is irrelevant whether this result is produced by a mechanical or chemical process or otherwise." In that case it was held that the assessee did carry on the business of manufacturing goods. The French coffee produced by the assessee was a different commercial commodity from pure coffee powder. 6.. In Chowgule & Co. Pvt. Ltd. V. Union of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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