TMI Blog1991 (4) TMI 371X X X X Extracts X X X X X X X X Extracts X X X X ..... e finished products of the dealers from whom the applicant purchases the coconut oil, is actually the raw material in the hands of the applicant as further processing is done by the applicant on the said coconut oil to make it suitable for manufacturing biscuits. In March, 1985, the applicant received orders from various industries engaged in the business of manufacturing biscuits for supply of such coconut oil after further refining the coconut oil available in the market. On March 21, 1985, the applicant sent applications to the respondent No. 1, the Commercial Tax Officer, Shyambazar Charge, for amendment of the manufacturing column of the registration certificate under the Act of 1941 as well as the Act of 1956 by including in it the item, "raw coconut oil" so that the applicant could purchase coconut oil at a concessional rate of tax for manufacturing refined coconut oil, which was used only by the industries engaged in the business of manufacturing biscuits. Those applications dated March 21, 1985 were not disposed of by the respondent No. 1. The applicant had to move the High Court, Calcutta, under article 226 of the Constitution for disposal of those applications. Under ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same. The contention of the learned State Representative is that no new item of goods comes into existence as a result of processing of the coconut oil purchased by the applicant. Before entering into the question as to whether there is manufacture of refined coconut oil, as claimed by the applicant, it is necessary to recite the definition of the word "manufacture", as appearing in section 2(dd) of the Act of 1941. The definition of the word "manufacture in the Act of 1941 underwent a change with effect from April 1, 1985. Before this amendment the word "manufacture" was defined as follows: "'Manufacture', with all its grammatical variations and cognate expressions, means producing, making, extracting, altering, ornamenting, blending, finishing or otherwise processing, treating or adapting any goods; but does not include such manufactures or manufacturing processes as may be prescribed." The above definition of the word "manufacture" from February 1, 1979 to March 31, 1985 underwent a change with effect from April 1, 1985, as follows: "'Manufacture', with all its grammatical variations and cognate expressions, means producing, making, extracting or blending any goods; but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw coconut or coconut oil (unrefined) differs from the refined oils in their characteristics like the free fatty acid moisture, unsaponifiable matter, colour on a lovibond scale, odour and saponification and iodine values. It is further stated in that report of Prof. D.K. Bhattacharyya that as a result of purification, the coconut oil becomes fit for human consumption as coconut oil and finds extensive utilisation in bakery, particularly the biscuit industries. The oils in fact, after refining, bleaching and deodorization become water-while and odourless. The contention of Mr. Bajoria is that the refined coconut oil, as produced by the applicant after going through the aforesaid processes, must be held to be manufactured by the applicant. 8.. The word "manufacture", as used in sales tax legislation in different States, has come up for interpretation before courts. Mr. Bajoria has referred, in this connection, to several cases such as the cases of Union of India v. Delhi Cloth and General Mills Co. Ltd. AIR 1963 SC 791, Tungabhadra Industries Ltd. v. Commercial Tax Officer [1960] 11 STC 827 (SC), Amritsar Sugar Mills Company Limited v. U.S. Naurath, The Assessing Authority [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of "producing" or "making" of a different commercial commodity as a result of manufacture. Each of the activities of "producing, making, extracting or blending", as mentioned in the present definition of the word, "manufacture", since April 1, 1985, in the Act of 1941, before it can amount to manufacture, must result in a commodity commercially different from the commodity or commodities to which the activity was applied. This view gets support from a recent decision of the Honourable Supreme Court in the case of Deputy Commissioner of Sales Tax v. Coco Fibres [1991] 80 STC 249 (SC); AIR 1991 SC 378. Following the decision of the Constitution Bench of the Honourable Supreme Court in the case of Ujagar Prints v. Union of India [1989] 74 STC 401; AIR 1989 SC 516, it has been held in the case of Deputy Commissioner of Sales Tax [1991] 80 STC 249 (SC); AIR 1991 SC 378, that by process of manufacture, something is produced and brought into existence which is different from that, out of which it is made, in the sense that the thing produced is by itself a commercial commodity capable of being sold or supplied. In the present case, the change brought about in the coconut oil purchased ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough the aforesaid processes after purchasing unrefined oil from the dealers, is a different commercial commodity, manufactured by the applicant. 11.. We are, accordingly, of the opinion that the applicant manufactures refined coconut oil by going through several processes after purchasing coconut oil available in the market, which is fit for human consumption and use and that the refined coconut oil, so manufactured by the applicant, is used in manufacturing biscuits, coconut oil, refined or unrefined, as available in the market being not suitable for manufacturing biscuits. Whether coconut oil or refined coconut oil, as available in the market is purchased by the applicant-company for its manufacturing activity, what it manufactures for sale is commercially different from such oil, no matter whether the new product is called refined coconut-oil or by any other name. 12.. The result is that the writ petition is to be allowed and the respondent No. 1 is to be directed to amend the manufacturing column of the registration certificate granted to the applicant under the Act of 1941 by inclusion of the item "coconut oil" in it. Mr. Bajoria, appearing for applicantcompany has submi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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