TMI Blog1979 (2) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness of crushing groundnut kernel and extracting oil therefrom. The question now is whether his interest in the said Mahalakshmi Groundnut Oil Mills valued at Rs. 1,08,757 is exempt from wealth-tax under s. 5(1)(xxxii) read with the Explanation to s.5(1)(xxxi). There is no dispute in regard to the value of the writ petitioner's interest in the said mill. The only dispute is whether the mill is an " industrial undertaking ". However, it must be noticed that before the assessing authority this exemption was not claimed ; nor was it claimed before the appellate authority, viz., the AAC. But in a revision under s. 25 of the W.T. Act before the Commissioner this exemption was claimed and the Commissioner ruled that the undertaking is not an " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,08,757. The exemption is claimed under cl. (xxxii) of s. 5(1) in respect of this Rs. 1,08,757 alone. In this connection, we may usefully refer to sub-s. (1A) of s. 5 which says that nothing contained in sub-s. (1) shall operate to exclude from the net wealth of the assessee any assets referred to, amongst other clauses, in cl. (xxxii) to the extent the value thereof exceeds, in the aggregate, a sum of one hundred and fifty thousand rupees. Since the value of the interest is admittedly Rs. 1,08,757 only, the exemption that is now claimed does not come within the ambit of s. 5(1A). The Commissioner ruled and the learned standing counsel for the revenue contends that this oil mill is not an " industrial undertaking " within the meaning of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the petitioner has an interest is engaged in the manufacture or processing of goods, viz., groundnut oil and groundnut cake. Groundnut kernel is put in the crusher and the kernel is crushed out of which marketable commodities, viz., groundnut oil and groundnut cake, come into existence. There is thus a complete transformation of the shape and form of the original groundnut kernel. In the place of groundnut kernel, groundnut oil and groundnut cake come into being. There is thus a total alteration or change in the goods. It results in the loss of identity of the original goods, viz., groundnut kernel. Therefore, in the groundnut oil mill in which the petitioner is a partner, manufacture of oil and groundnut cake is being done. We may u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, by crushing groundnut kernel the kernel disappears and, instead, oil and groundnut cake come into existence. While enunciating the characteristic of manufacture the Supreme Court followed the earlier decision in Devi Dass Gopal Krishnan v. State of Punjab [1967] 20 STC 430 (SC) These decisions fully support the view we have taken that in the oil mill in which the petitioner has a share, manufacture of groundnut oil and groundnut cake is being done. Further, the other requirement of the limb, viz., processing of goods also exists in this case. In common parlance, by processing of goods, it is meant that the goods are dealt with either mechanically or by manual labour and something is done to them to change them into some other article ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted sheets. The question was whether it was processing of goods. The learned judges held that though the printing of the sheets was done by a different concern and, therefore, there was no question of the assessee carrying on any " manufacture ", the folding and stitching of the printed sheets would constitute " processing of goods " so as to fall within the scope of s. 2(6)(d) of the Finance Act, 1968. If groundnut kernel is put in the crusher and the crusher is operated on account of which the kernel is crushed and oil and groundnut cake are extracted therefrom, it is certainly "processing of goods ". Thus, the groundnut oil mill in which the petitioner has an interest of Rs. 1,08,757 is certainly an " industrial undertaking " within t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. But the same learned author points out that before the rule of ejusdem generis can be applied, it is necessary that there must be a distinct genus which must comprise more than one species. Further, the general words are not restricted in meaning to objects ejusdem generis if there is a clear manifestation of contrary intent. While the rule of ejusdem generis is a well-established and useful one, it is, like other canons of statutory construction, only an aid to the ascertainment of the true meaning of the statute. The rule shall not be applied if it results in a construction inconsistent with the statute's legislative history, other controlling rules of construction or statutes in pari materia. These principles pointed out by the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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