The rearing of chicks until they became marketable broilers was "manufacture" within the meaning of the said Act.

Judgment

BHARUCHA, J.

( 1 ) UNDER appeal is the order of the Madhya Pradesh High court dismissing writ petitions filed by the appellants. The order states:"in view of the decision of the Division Bench of this Court dated 6-11-1996 in ITR No. 3 of 1996, the matter is no longer res Integra. A similar controversy was raised in the said case and negativing the contention this Court held that the process which is involved in developing of chicks into broilers did not bring about any change so as to produce a commodity having any new commercial identity. It was held that manufacture implies a change but every change is not manufacture and yet every change in an article is the result of some treatment, labour and manipulation. "

( 2 ) THE appellants are engaged in rearing broilers with the aid of technological and mechanical processes. They buy very young chicks. The chicks are reared over a period of five weeks under strict control of air, temperature, standardised feeding, medication and chemicals. The broilers that result are sold.

( 3 ) ONE of the two appellants was registered as a manufacturer for the purposes of the Madhya Pradesh General Sales Tax Act, 1958 but the schedule of the registration certificate was later amended so as to exclude what was required for the purposes of rearing the broilers. . , The other appellant was refused registration as a manufacturer. These actions were taken on the basis that the rearing of chicks so that they became broilers was not "manufacture" within the meaning of the said Act. The said actions were challenged by the writ petitions which, as aforestated, were dismissed.

( 4 ) THE definition of "manufacture" is contained in Section 2 (j) of the Act. The definition of "goods" is contained in Section 2 (g) thereof. They read thus:"2. (j) manufacture includes any process or manner of producing, collecting, extracting, preparing or making any goods, and in respect of trees which have been severed from the land or which have been felled, also the process of lopping the branches, cutting the trunks or converting them into logs, poles or bailies or any other articles of wood, but does not include such manufactures or manufacturing processes as may be prescribed;""2. (g) goods means all kinds of moveable property- other than actionable claims, newspapers, stocks, shares, securities or government stamps and includes all materials, articles and commodities, whether or not to be used in the construction, fitting out, improvement or repair of moveable or immovable property; and also includes all growing crops, grass, trees, plants and things attached to, or forming part of, the land which are agreed to be severed before sale or under the contract of sale;"by reason of Section 6 (2) (a) a concessional rate of tax is payable on the sales of goods specified in Schedule II if they are to be used in the "manufacture or processing of goods.

( 5 ) OUR attention was drawn by learned counsel for the appellants to the judgment of this Court dated 3-11-1998 in Ashirwad Ispat Udyog v. State level Committee. The judgment considered the definition of "manufacture" in Section 2 (j) of the said Act and held:"8. Decisions construing the meaning of the word manufacture as used in other statutes do not apply unless the definition of that word in the particular statute under consideration is similar to that construed in the decisions. The plain construction. of the special definition of the word in a partfcular Act must prevail. In the special definition given in Section 2 (j) of the said Act manufacture, has been defined as including a process or manner or producing, collecting, extracting, preparing or making any goods. There can be no doubt whatsoever that collecting goods does not result in the production of a new article. There is, therefore, inherent evidence in the definition itself that the narrow meaning of the word manufacture was not intended to be applied in the said Act. Again, the definition speaks of the proc