SALES TAX COMMISSIONER Vs. DHAMEJA HOME INDUSTRIES

JUDGEMENT

(1.) BY this reference under Section 44 (1) of the M. P. General Sales Tax Act, 1958, hereinafter referred to as the Act, the Board of Revenue has referred the following question of law to this Court for its opinion :

(2.) THE material facts giving rise to this reference briefly are as follows : The assessee deals in condiments and he was assessed to sales tax for the financial year 1969-70. The gross turnover of the assessee was determined by the assessing authority at Rs. 1,94,000 which included the sale of garam masala worth Rs. 13,135. 14. Garam masala was treated by the assessing authority as the product of a process of manufacture and hence was excluded from the goods for which rebate was given. On appeal preferred by the assessee the contention advanced on behalf of the assessee that garam masala was not a product of a manufacturing process was rejected. On further appeal the Board held that the preparation of garam masala was expressly excluded from the definition of "manufacture" by the Rules framed under the Act. In this view of the matter, the appeal preferred by the assessee was allowed. At the instance of the department the Board has referred the aforesaid question of law to this Court for its opinion.

(3.) TO appreciate the question referred to us it is necessary to refer to the relevant provisions of the Act. The expression "manufacture" is defined by Section 2 (j) of the Act. That provision reads as follows :