Commissioner Of Trade Tax vs M/S. Kumar Paints And Mill Stores ...

The Supreme Court examined whether the process of mixing base paint with different colours constitutes 'manufacture' under Section 2(e)(i) of the U.P. Trade Tax Act, 1948. The High Court had held that such mixing did not produce a 'new' product and thus did not amount to manufacture. The Court analyzed the nature of the process and the resultant product, ultimately affirming that mere mixing does not qualify as manufacturing, and the sale of such mixed paints does not attract a new incidence of trade tax. The judgment clarifies the scope of 'manufacture' in the context of paint mixing processes.