TMI Blog1985 (10) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... aged in the work of excavating gypsum. For this purpose it bought spare parts, machinery and other equipments, tyres and tubes against declaration in form S.T. 17 saying that the aforesaid goods were required for manufacturing and mining. The Commercial Taxes Officer, Special Circle, Jodhpur, by his order, dated 22nd March, 1968, held that the non-petitioner (assessee) is not a manufacturer and under section 5C of the Rajasthan Sales Tax Act, 1954 (Act No. 29 of 1954) (for short "the Act" hereinafter), purchases of raw material on concessional rate can be made only by these registered dealers of the State who are manufacturers. He, therefore, held that the non-petitioner cannot avail of the concession provided under the Act. In view of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch of the Board: "We cannot say that gypsum is sold as it is excavated. It does involve a process of manufacture. As per definition given in section 2(k) of the Rajasthan Sales Tax Act, which is very wide and broad one, it includes a number of processes such as producing, collecting, extracting, preparing or making any goods and even the process of excavation can, under the circumstances, be covered under this definition. Gypsum is not sold in the form in which it is obtained from the mines. The lumps of gypsum constitute raw material and it has to be converted into a different and marketable commodity and this process of change is certainly one of the manufacturing processes." The Commercial Taxes Officer, Special Circle, Udaipur, subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mines and, therefore, they are manufacturers under the Act. It was submitted before the assessing authority as well as the Deputy Commissioner (Appeals), Commercial Taxes, Bikaner, that the non-petitioner (assessee) has been carrying on the business of "excavating gypsum" from the ground (earth) and that excavation amounts to manufacture. The Division Bench of the Board in disagreement with the assessing authority, the Deputy Commissioner (Appeals), Commercial Taxes, Bikaner, and the single Member of the Board was of the opinion that the definition of "manufacture" as given in section 2(k) of the Act in the facts and circumstances of this case includes process of excavation. The definition of "manufacture" as stood then in section 2(k) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... character or use, after it is excavated from the ground (earth). Having regard to the meaning of the word "manufacture" as defined in section 2(k) of the Act, we are unhesitatingly of the opinion that the view that the process of excavating of gypsum also includes manufacturing process is erroneous in law. Mr. B.R. Arora, learned counsel for the non-petitioner (assessee), submitted that "manufacture" as defined in section 2(k) of the Act includes process of "extracting" and according to him excavating gypsum from the ground (earth) is nothing but extracting gypsum and thus it is a process of manufacturing. On this basic premise, contended the learned counsel, that the process of manufacture is involved in the activities carried by the non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it does involve process and which, according to it, is a process of manufacture. What is done by the non-petitioner (assessee) is to dig out the gypsum which is lying underground (earth). By engaging labour, it is taken out, then it is sold in the market. It was put to the learned counsel for the non-petitioner (assessee) as to what was the different form of gypsum other than the one when it is taken out from the ground before it is sold, as the Board has observed that gypsum is not sold in the form it is obtained from the mines. The learned counsel replied that after taking it out it is sold in pieces of different sizes and, therefore, it is in different form. He, however, did not dispute that gypsum under the earth and gypsum after it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is view of that the process of extracting includes excavation and activities of digging out gypsum from the earth. For the reasons aforesaid, we are of the opinion that the Division Bench of the Board was not right in holding that the work of excavating gypsum from earth includes manufacturing process within the meaning of section 2(k) of the Act. We, therefore, allow this revision (references treated as revision) and set aside the order dated 7th August, 1979, of the Division Bench of the Board and restore the orders dated 22nd March, 1968, of the Commercial Taxes Officer, Special Circle, Jodhpur, 21st March, 1970, of the Deputy Commissioner (Appeals), Commercial Taxes, Bikaner, 15th October, 1974, of the single Member of the Board o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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