JUDGMENT OF THE TRIBUNAL

The applicants, who deal in tea under the name and style of Messrs Nilgiri Ceylon Tea Supply Co. claimed a deduction from their turnover of the sales of goods which had been purchased by them from registered dealers on or after the appointed day mentioned in section 8 of the Bombay Sales Tax Act, 1953. That deduction has not been allowed by the authorities below in view of the proviso "that the goods have not been processed or altered in any manner after such purchase". It was found that they prepared new blends by mixing different varieties of tea purchased by them and sold such new blend of tea. It was contended that the mixing of different varieties of tea should not be regarded as "processing". The Additional Collector of Sales Tax has held that by the blending of different varieties of tea new mixtures are prepared, that the value and utility of the original are thereby altered, and that, therefore, the blending of different kinds of tea amounts to processing. The applicants filed an affidavit before the Additional Collector in which it was stated that the mixing of different kinds of tea was done by hand, no machinery or chemical process for the purpo

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