J. S. VERMA, C. J. - (1.) THIS was initially a reference which is now heard as a revision under section 15 of the Rajasthan Sales Tax Act, 1954, as substituted by the Amendment Act of 1984. The question of law referred by the Tribunal for decision of this Court was the following, namely : " Whether, on the facts and in the circumstances of this case, the Board of Revenue was justified in holding that 'edible oil' is a raw material within the meaning of section 2 (mm) of the Rajasthan Sales Tax Act ?"
(2.) DURING the relevant accounting period, the dealer purchased and utilized edible oil worth Rs. 28,183. 05, in the prescribed manner, for the purpose of manufacturing pulses treating the edible oil as a raw material in the process of manufacture of pulses. The assessing authority rejected the dealer's contention that the edible oil was a raw material liable to be taxed at the concessional rate prescribed in the Act. Ultimately, the Tribunal took the view that the dealer's contention was correct, and therefore, it held that the edible oil having been used in the process of manufacture of pulses of facilitate removal of husk from the grain, falls within the definition of "raw material" in section 2 (mm) of the Act, which reads as under : " 2. (mm) 'raw material' means an article used as an ingredient in any manufactured goods and includes fuel and lubricant required for the process of manufacture, but does not include bullion and specie. " Aggrieved by the decision of the Tribunal, the department sought reference of the above question of law to this Court, and this is how the present revision arises. The point is whether the edible oil so used by the dealer to dehusk the grain for manufacture of pulses, was rightly treated as "raw material" as defined in section 2 (mm) of the Act, by the Tribunal. It cannot be disputed that in case edible oil so used for the purpose of manufacturing pulses for dehusking the grain falls within the expression, "lubricant required for the purpose of manufacture", then, the view taken by the Tribunal is justified. The definition of "raw material" in section 2 (mm) is an inclusive definition which is wide enough to cover any lubricant required in the process of manufacture of the finished product, i. e. , pulses, in the present case. The test to be applied in such a case for deciding whether the goods is to be treated as a "raw material" was indicated clearly by the Supreme Court in the case of J. K. Cotton Spinning & Weaving Mills Co. Ltd. v. Sales Tax Officer, Kanpur [1965] 16 STC 563 as under : ". . . the intention must be to use the goods as raw materials, as processing materials, as machinery, as plant, as equipment, as tools, as stores, as spare parts, as accessories, as fuel, or as lubricants. A bare survey of the diverse uses to which the goods may be intended to be put in the manufacture or processing of goods, clearly shows that the restricted interpretation placed by the High Court is not warranted. The expression 'in the manufacture of goods' should normally encompass the entire process carried on by the dealer of converting raw materials into finished goods. Where any particular process is so integrally connected with the ultimate production of goods that but for that process, manufacture or processing of goods would be commercially inexpedient, goods required in that process would, in our judgment, fall within the expression 'in the manufacture of goods'. " In that case, it was further observed as under : " In our judgment if a process or activity is so integrally related to the ultimate manufacture of goods so that without that process or activity manufacture may, even if theoretically possible, be commercially inexpedient, goods intended for use in the process or activity as specified in rule 13 will qualify for special treatment. " The above test laid down by the Supreme Court, clearly indicates that if commercial expediency requires the use of such goods as a lubricant in the process of manufacture of pulses and that process if so integrally connected with the ultimate production of pulses, then, the same would be a raw material as specified in the definition since it would be "lubricant required for the process of manufacture" of pulses. The facts found by the Tribunal clearly satisfy this test. The Tribunal was, therefore, justified in holding that the edible oil so purchased and used by the dealer in the process of manufacture of pulses, is a raw material within the meaning of section 2 (mm) of the Rajasthan Sales Tax Act. Consequently's the department's revision is dismissed. No costs. Petition dismissed. . ;