Chowgule & Co. Pvt. Ltd. & Anr vs Union Of India & Others(And Vice Versa) on 25 November, 1980
In the aforesaid regard it is observed that the answer to this question depends
upon what is the true meaning and connotation of the word "processing"
while dealing the matter in regard to sec.8(3)(b) and Rule 13 of Central Sales
Tax Rules, 1956 and Central Sales Tax Act, 1957 and the Apex Court in
Chowgule's case had went on to hold that as per the websters' Dictionary the
meaning of the word "process", is subject to some special process or
treatment, to subject (especially raw material) to a process of manufacture,
development or preparation for the market etc., to convert into marketable
Signature Not Verified
Signed by: ASHISH PAWAR
Signing time: 19-05-2025
12:20:29
NEUTRAL CITATION NO. 2025:MPHC-GWL:8598
12 WP-11988-2022
form as live stock by slaughtering, grain by milling, cotton by spinning, milk
by pasteurizing fruits and vegetables by sorting and repacking. Thus, where
any commodity is subjected to a process or treatment with a view to its
"development or preparation for the market", it would amount to processing
of the commodity. The nature and extent of processing may vary from case
to case; but with each process suffered, the commodity would experience a
change. Wherever a commodity undergoes a change as a result of some
operation performed on it or in regard to it, such operation would amount to
processing of the commodity. Thus, what is necessary in order to
characterise an operation as "processing" is that the commodity must, as a
result of the operation, experience some change. Here, in the present case,
two different compositions are blended together to produce oil of the
requisite chemical and physical composition and as a result of this blending,
the quantities of oil mixed together experience change in their respective
compositions, because what is produced by such blending is oil of a different
composition and when the chemical and physical composition of each kind
of oil which goes into the blending is changed, there can be no doubt that the
operation of blending would amount to 'processing'. Thus, in the very unit
of the petitioner it can be said that after processing of the blended edible
vegetable oil, it is packed and the said unit cannot be any way said to
engaged only in repacking of the oil.