Processing - Definition - Law Dictionary Home Dictionary Definition processing

Definition :

Processing, in common parlance 'processing' is understood as an action which brings forth some change or alteration of the goods or material which is subjected to the act of processing. 'What is necessary in order to characterise an operation as 'processing' is that the commodity must, as a result of the operation, experience some change' (See Chowgule & Co. Pvt. Ltd. v. Union of India, 1981 (1) SCC 653: AIR 1981 SC 1014). In a cold storage, vegetables, fruits and several other articles which requires preservation by refrigeration are stored. While as a result of long storage, Scientific examination might indicate loss of moisture content that is not sufficient for holding that the stored articles have undergone a process, Delhi Cold Storage Pvt. Ltd. v. Commissioner of Income Tax, New Delhi, AIR 1991 SC 2125.

Processing, include the preservation of such products as canning, freezing drying, salting, smoking, peeling or filleting etc., Regional Executive, Kerala Fishermen's Welfare Fund Board v. Fancy Food, 1995 (4) JT (SC) 15: (1995) 4 SCC 341. (See Maine Products Export Development Authority Act, 1972)

Means a sequence of operations of changes under-gone. The term 'processing' merely has to be distinguished from 'manufacturing' in the sense that a mere processing does not ordinarily make the original thing to undergo a change losing its original identity, Diamond Industries v. Commissioner of Sales Tax, Madhya Pradesh, 1994 MP LJ 257.

Means an action, operation or method of treatment applying it to something. It is refining, development, preparation or converting of material especially that in a raw state into marketable form, Saraswati Sugar Mills v. Haryana State Board, AIR 1992 SC 224: 1992 (1) SCC 418.

Means running a cold storage for the preservation and refrigeration of goods amounts to 'processing', Shrishakti Aloo Utpadak Sahkari Sanstha v. Commissioner of ST, 1982 MP WN 556.

Means where any commodity is subjected to a process or treatment with a view to its develop-ment or preparation for the market, it would amount to processing, Webster's Dictionary; B.P. Oil Mills Ltd. v. Sales Tribunal, (1998) 6 SCC 577.

The word 'processing' has not been defined in the Act and it must be interpreted according to its plain natural meaning. Webster's Dictionary gives the following meaning of the word 'process': 'to subject to some special process or treatment; to subject (especially raw material) to a process of manufacture, development of preparation for the market etc.; to covert into marketable form as livestock by slaughtering, grain by milling, cotton by spinning, milk by pasteurizing fruits and vegetables by sorting and repacking.' Where therefore any commodity is subjected to a process or treatment with a view to its 'development or preparation for the market', as, for example, by sorting and repacking fruits and vegetables, it would amount to processing of the commodity within the meaning of s. 8(3)(b) and Rule 13; Chowgule & Co. Pvt. Ltd. v. Union of India, AIR 1981 SC 1014 (1018): (1981) 1 SCC 653: (1981) 2 SCR 271. [Central Sales Tax Act, 1956, s. 8(3)(b)]

(i) In common parlance 'processing' is understood as an action which brings forth some change or alteration of the goods or material which is subjected to the act of processing. The dictionary meaning of the terms is not very different from this meaning in one sense while various other meanings of wider amplitude are also available, Delhi Cold Storage (P) Ltd. v. C.I.T., AIR 1991 SC 2125 (2127): (1991) 4 SCC 239: (1991) 3 SCR 589.

(ii) The word 'processing' is a word of wide amplitude. It can have various shades of meaning. It is always open to the Legislature to give a meaning different from the dictionary meaning. The word 'processing' has been used in different Acts for different purposes. In cases arising under Excise Act or Sales Tax Act it has normally been interpreted to mean 'bringing out a new commodity'. But that meaning would be out of context for interpreting the word in this Act for the simple reason that where a word has not been defined in the Act its meaning has to be gathered from the context in which it has been used. The expression used is 'processing for export'. That is not for bringing out a new commodity or making it marketable but rendering it suitable for export. Every process, may be freezing or applying chemical so long it is undertaken to make fish worthy for export it would be covered in the definition, Regional Executive, Kerala Fishermen's Welfare Fund Board v. Fancy Food, AIR 1995 SC 1620: (1995) 4 SCC 341.converting of material especially that in a raw state into marketable form, Saraswati Sugar Mills v. Haryana State Board, AIR 1992 SC 224: 1992 (1) SCC 418.

Means running a cold storage for the preservation and refrigeration of goods amounts to 'processing', Shrishakti Aloo Utpadak Sahkari Sanstha v. Commissioner of ST, 1982 MP WN 556.

Means where any commodity is subjected to a process or treatment with a view to its develop-ment or preparation for the market, it would amount to processing, Webster's Dictionary; B.P. Oil Mills Ltd. v. Sales Tribunal, (1998) 6 SCC 577.

The word 'processing' has not been defined in the Act and it must be interpreted according to its plain natural meaning. Webster's Dictionary gives the following meaning of the word 'process': 'to subject to some special process or treatment; to subject (especially raw material) to a process of manufacture, development of preparation for the market etc.; to covert into marketable form as livestock by slaughtering, grain by milling, cotton by spinning, milk by pasteurizing fruits and vegetables by sorting and repacking.' Where therefore any commodity is subjected to a process or treatment with a view to its 'development or preparation for the market', as, for example, by sorting and repacking fruits and vegetables, it would amount to processing of the commodity within the meaning of s. 8(3)(b) and Rule 13; Chowgule & Co. Pvt. Ltd. v. Union of India, AIR 1981 SC 1014 (1018): (1981) 1 SCC 653: (1981) 2 SCR 271. [Central Sales Tax Act, 1956, s. 8(3)(b)]

(i) In common parlance 'processing' is understood as an action which brings forth some change or alteration of the goods or material which is subjected to the act of processing. The dictionary meaning of the terms is not very different from this meaning in one sense while various other meanings of wider amplitude are also available, Delhi Cold Storage (P) Ltd. v. C.I.T., AIR 1991 SC 2125 (2127): (1991) 4 SCC 239: (1991) 3 SCR 589.

(ii) The word 'processing' is a word of wide amplitude. It can have various shades of meaning. It is always open to the Legislature to give a meaning different from the dictionary meaning. The word 'processing' has been used in different Acts for different purposes. In cases arising under Excise Act or Sales Tax Act it has normally been interpreted to mean 'bringing out a new commodity'. But that meaning would be out of context for interpreting the word in this Act for the simple reason that where a word has not been defined in the Act its meaning has to be gathered from the context in which it has been used. The expression used is 'processing for export'. That is not for bringing out a new commodity or making it marketable but rendering it suitable for export. Every process, may be freezing or applying chemical so long it is undertaken to make fish worthy for export it would be covered in the definition, Regional Executive, Kerala Fishermen's Welfare Fund Board v. Fancy Food, AIR 1995 SC 1620: (1995) 4 SCC 341.