( 1 ) THIS is a Reference under sec. 34 (1) of the Bombay Sales Tax Act 1953 The business of Messrs. Abdul Rehman Alladin the respondents herein consisted of purchasing old motor-cars and dismantling the same and deriving spare parts therefrom and parts which could not be used as spare parts and of selling the spare parts without moulding repairing or changing them in any way. The respondents also sold old motor-cars and scrap. The respondents applied for registration on 11th July 1955 as by that date according to them their turnover had exceeded Rs. 25 0 The Sales Tax Officer by his order dated 11th July 1955 took the view that the respondents were liable as dealers who processed goods with effect from 1st April 1954 when their turnover was taken to have exceeded Rs. 10 0 The matter went in appeal before the Assistant Collector of Sales Tax who set aside the assessment by his order dated 9th JUly 1956. Thereafter the Additional Collector of Sales Tax in exercise of his powers of revision by his order dated 19th May 1958 held that the respondents were dealers who processed goods and restored the assessment order passed by the Sales Tax Officer. The matter was carried further before the Sales Tax Tribunal. The Tribunal set aside the order of the Additional Collector of Sales Tax and affirmed the order of the Assistant Collector of Sales Tax The Tribunal observed that in its opinion change of the original goods in some way or the other was the essence of processing and that having regard to the description of the work done by the respondents it could not be said that the respondents had done any work of processing. At the instance of the Collector of Sales Tax a Reference has been made to us for the determination of the following questions which arise out of the order of the Tribunal. (1) Whether in respect of their business in spare parts the respondents are processors within the meaning of Clause (ii) of the sec 5 (1) (b) of the Bombay Sales Tax Act 1953 ? (2) Whether in any event in respect of their business in spare parts the respondents are producers or manufacturers within the meaning of Clause (ii) of sec. 5 (1) (b) of the Bombay Sales Tax Act 1953 ? (3) Whether on the facts and in the circumstances of the case the respondents are liable to pay tax under the sec. 5 of the Bombay Sales Tax Act 1953 with effect from 1st April 1954 ?

( 2 ) SECTION 5 (1) (b) (ii) of the Bombay Sales Tax Act 1953 which is required to be construed for the purpose of answering the aforesaid questions runs as under:5 Incidence of tax :- (1) Every dealer whose turnover either of all sales or of all purchases made during- (a) xx xx xx (b) the year commencing on the 1st April 1954 has exceeded or exceeds (i) xx xx xx xx (ii) in the case of a dealer who produces collects extracts manufacturers or processes any goods Rs. 10 0 provided that the value of the goods produced collected extracted manufactured or processed during the said period is not less than Rs. 2 500 shall be liable to pay the tax under this Act on his turnover of sales and his turnover of purchases made on or after the appointed day.

( 3 ) THE question that we have to determine is whether it could be said that the respondents in this case have processed any goods or produced or manufactured any goods. The term process has been used in the section as a transitive verb. In Websters New World Dictionary the meaning of the word process used as a transitive verb has been given as to prepare by or subject to a treatment or process. In Iyers Law Lexicon that word has been stated to mean treatment of substance in transforming or reducing it to a different state. We have therefore to consider whether when a person purchases old motor-cars and dismantles the same and takes out their parts which could be sold as spare parts he could be said to have processed any goods. Can it be said that when a car is dismantled it Is subjected to a treatment for the purpose of taking there out spa