COMMISSIONER OF SALES TAX Vs. NHAVA POULTRY FARM

JUDGEMENT

(1.) This is a reference of a case stated by the Sales Tax Tribunal under section 61(1) of the Bombay Sales Tax Act, 1959 (hereinafter referred to as "the said Act"). The following questions have been referred to us for our determination in this reference :

(2.) The facts giving rise to the reference are as follows : The respondents conduct a poultry farm. The activities of the respondents inter alia comprise buying one day old chicks and rearing them into broilers or layers and rearing hens with a view to obtain eggs and selling broilers or layers and eggs laid by the layers and collected from the hens. During the period from 1st April, 1971, to 31st December, 1971, the turnover of purchases of the respondents was Rs. 34,800 and the turnover of sales was Rs. 23,456.74. The Sales Tax Officer concerned held that the above activities of the respondents amounted to manufacture within the meaning of section 2(17) of the said Act. The Sales Tax Officer fixed the liability of the respondents on the footing that they were entitled to the lower exemption of limit of Rs. 10,000 as provided in sub-section (4) of section 3 of the said Act. The Sales Tax Officer assessed the total tax payable by the respondents at Rs. 631.26 and levied a penalty of Rs. 94.68. The appeal preferred by the respondents to the Assistant Commissioner of Sales Tax was dismissed on the ground that the activities of the respondents amounted to manufacture within the meaning of section 2(170 of the said Act. The respondents filed a second appeal before the Sales Tax Tribunal. The Tribunal following its earlier decision in the case of Messrs. Rocha Poultry Farm (Appeal No. 47 of 1971 decided on 18th April, 1973) held that the activity of the respondents of rearing one day old chicks into broilers or layers does not amount to manufacture within the meaning of section 2(17) of the said Act. The Tribunal also held that the activity of rearing hens with a view to obtain eggs from the hence and collection of these eggs laid by the hens also does not amount to manufacture within the meaning of section 2(17) of the said Act. It is the correctness of this decision which is sought to be tested before us by way of questions referred to hereinabove.

(3.) The term "manufacture" is defined in sub-section (17) of section 2 of the said Act. The said sub-section states :