The judgment of the Court was delivered by

KANIA, J. - This is a reference under section 61(1) of the Bombay Sales Tax Act, 1959 (hereinafter referred to as "the said Act"), made at the instance of the Commissioner of Sales Tax. The question referred to us for our determination is as follows :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the activity carried on by the respondent, viz., mixing of distilled water with methonol in certain proportion and selling the same as 'Methimix' does not amount to manufacture of goods within the meaning of section 2(17) of the Bombay Sales Tax Act, 1959 ?"

The respondent is a dealer registered under the said Act. By an application dated 14th October, 1971, made under section 52(1) of the said Act, to the Commissioner of Sales Tax, the respondent sought determination of the correct rate of tax payable on the sale of Methimix effected under a certain invoice, a copy of which was annexed to the application. The respondent applied for determination of the question as to whether mixing of distilled water with methonol amounted to manufacture of goods under section 2(17) of the said Ac