M.C.Desai, C.J. - (1.) The Judge (Revisions), Sales Tax, U. P., has at the assessee's instance submitted to this Court a statement of the case under Section 11 (2) inviting this Court's answers to the following two questions: 1. Whether in the circumstances of the case the assessees are manu facturers and liable to pay tax as such on their sales of linseed oil ?
(2.) Whether linseed oil is an edible oil within the meaning of the notification dated 8th June, 1948, issued under the U.P. Sales Tax Act? 2. The assessee is a dealer in linseed oil, which is taxable at the point of sale by its manufacturer. It buys oil-seeds and gets them crushed at the mill of another person installed in his premises. The assessee has no mill and does not get oil-seeds converted into oil at its own premises. It pays the owner of the mill his charges for the labour of crushing oil-seeds into oil, brings linseed oil to its premises and sells it. The question is whether it is a manufacturer of linseed oil or not. The Judge (Revisions) answered it in the affirmative observing: If the assessees had employed a labourer for crushing oil-seeds at their own place they would have been undoubtedly manufacturers of the oil, not because they themselves produced the oil but because they paid for the work which was done and also because they were the owners of the oil-seeds. I, therefore, fail to see how they cease to be the manufacturers if instead of engaging a labourer and getting the work done at their place they went to the mills and paid for the oil seeds being crushed and converted into oil....So far as the oil in dispute is concerned the payment of charges was made by the assessees and they were, therefore, in the position of manufacturers.
(3.) We agree with the view taken by the Judge (Revisions).;