Law:

Section:

Sales Tax Act (III of 1951), Ss. 2 (11) & 2 (15) "Manufac¬turer or producer" and "Sale" Definition Sales Tax Act (III of 1951), S. 2 (11), proviso Application. The words "manufacturer or producer" and "Sale", as defined in subsections (11) and (15), respectively, of section 2 of the Sales Tax Act, 1951, are very comprehensive and cover almost every type of makers of goods, the only exception that is provided is the case of an employee manufacturer. For the application of the proviso to subsection (11) of section 2 of the Act, two conditions must co exist : firstly, that the materials should be supplied by another, and, secondly, that the manufactured goods are not for the use of, but for the sale by, that other i.e., by the supplier of the materials. The assessee manufactured ballot boxes for a fixed considerations and with the materials supplied by the Govern¬ment. For the earnings thus made the assessee was assessed with sales tax under section 2 (11) of the Sales Tax Act, 1951. On behalf of the assessee it was contended that inasmuch as the materials were supplied by the Government and the goods made by the assessee were for the use of the Government, the Government should have been deemed to be manufacturer and assessed as such and not the assessee. It was claimed that all that the assessee did was to put into shape by their labour the materials supplied by the Government and as such the incidence of tax fell on the Government. Held, that although the goods were manufactured for the use of the Government these were not for sale by the Government and therefore the assessee was rightly taxed under section 2 (11) of the Sales Tax Act, 1951. THIS JUDGMENT DELIVERED BY: AMIN AHMED, C. J. This is a Reference by the Appellate Tribunal, Dacca Bench, under subsection (1) of section 17 of the Sales Tax Act (Act III of 1951) (to be hereinafter referred to in this as the Act only) at the instance of the assessee on two applications for reference to the High Court in respect of the assessment years 1953 54 and 1954 55. 2. The point raised for our opinion is whether on the facts and circumstances of the case the assessee is a manufacturer or a producer under…

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