Holding

Tanned leather, being a processed form of hides and skins, remains a hide or skin and is therefore an "agricultural produce" under Section 2(a) of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964.

Summary

Park Leather Industry and another, engaged in preparing tanned leather, challenged the levy of market fees imposed by the State of Uttar Pradesh under the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964, on the ground that tanned leather is a distinct manufactured commodity and not "hides and skins" covered by the definition of "agricultural produce" in Section 2(a) of the Act. The High Court dismissed the writ petitions. On appeal, the Supreme Court examined whether "hides and skins" includes tanned leather and whether tanned leather, though processed, remains a hide or skin and therefore qualifies as agricultural produce. The Court held that tanned leather is merely a processed form of hides and skins, retains its basic character, and is covered by the inclusive definition of agricultural produce in Section 2(a). Consequently, the levy of fees is valid and the appeal is dismissed.

Issues considered

Whether tanned leather falls within the definition of "hides and skins" under Section 2(a) of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964.
Whether tanned leather, being a processed product, qualifies as "agricultural produce" for the purpose of levying market fees.
Whether the Hindi version of the statute can be used to interpret the term "Chamra" in the absence of conflict with the English version.

Legislation cited

Constitution of Indias. Article 384
Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964s. 2(a)

Subjects

agricultural producetanned leatherhides and skinsmarket feestatutory interpretationHindi and English versionsprocessing vs manufacturingUttar Pradesh Krishi Utpadan Mandi Act

Judgment

MIS PARK LEATHER INDUSTRY (P) LTD. AND ANR. A
II.

STATE OF U.P.

FEBRUARY 14, 2001

[V.N. KHARE AND S.N. VARIAVA, JJ.] B

U.P. Krishi Utpadan Mandi Adhiniya111, 1964-Section 2(a)-Fees on
Agricultural Produce-Hides and Skins included under the definition of
'Agricultural Produce'-Tanned leather-Levy offees treating them as hides
and skins-Validity of-Held, tanned leather is processed form of hides and C
skins which is not a distinct commodity-Hence exigible to fees under the
Act.

Interpretation of Statutes :

U.P. Krishi Utpadan Mandi Adhiniyam, 1964-Enactment in Hindi- D
English version simultaneously published-Hindi version of 'Hides and Skins'
is 'Kha/ va Chamra '-Held, interpretation should be on the basis of the
concerned statute and not on the basis of different statutes-If there is no
conflict between Hindi version and English version of the Act, then one can
always take assistance of the Hindi version whether the word used in English E
includes a particular item or not.-Constitution of India-Article 384.

Petitioners are doing business of preparing tanned and finished leather.
Definition of 'agricultural produce' under Section 2(a) of the U.P. Krishi
Utpadan Mandi Adhiniyam, 1964 includes, inter alia, 'animal husbandry'
which includes, 'hides and skins'. Fees were levied under the Act by F
respondent-State treating the tanned leather produced by the petitioners as
hides and skins. Writ petitions were filed before High Court against the levy
under the Act. The High Court dismissed the Writ Petitions.

In appeal to this Court, the petitioners contended that tanned leather is
not hide or skin; that it is not derived by processing hide or skin; and that G
tanned leather is a distinct manufactured commodity having a distinctive
name, character and use.

The respondent-State contended that the definition of the term
'agricultural produce' under Section 2(a) of the Act is an inclusive definition;
1035
H
1036 SUPREME COURT REPORTS [2001) I S.C.R.

A that any item would be an 'agricultural produce' if it is specified in the
Schedule or if it is an admixture of two or more items specified in the Schedule ~
or it is a processed form of any of the items specified in the Schedule; that
tanned leather is covered by the definition; that tanned leather is a processed
form of hide and skin; that in the State of U.P., all the enactments are in
B Hindi language; that in the Hindi version, the term used is 'khal va Chamra';
that the dictionary meaning of the word 'Chamra' means leather which clearly
shows that leather is included under the Act; that under Article 384 of the
Constitution, if there is no conflict between Hindi version and English version
of the Act, then the Hindi version can be looked at to determine any ambiguity
or to find out if any item is included or not.
c
Dismissing the appeal, the Court

HELD :I.I. Tanned leather retains its basic character namely it remains
hide or skin, though there is some change in form and physical appearance.
There is no manufacture but mere processing of hides and skins to bring
D them into a tanned state. 11040-F; 1041-Al

1.2. A perusal of Section 2(a) of the U.P. Krishi Utpadan Mandi
Adhiniyam, 1964 makes it clear that an agricultural product would be a
product which is specified in the Schedule or one which is admixture of two
E or more items and would also include any such item is a processed form. It
makes no difference for the purposes of the Act that the concerned item is a
different commodity from the one which is included in the Schedule. It is
possible that by virtue of an admixture of two or more items or by virtue of
processing a different commodity or item may come into existence. Even
though a different commodity may come into existence, it would still be an
F 'Agricultur2l produce'.11048-B-CJ

1.3. It is very clear that for hide and skin to be converted into leather
or tanned leather, all that is required is a process. It is a process of cleaning,
curing and adding preservations. The finished product i.e., 'tanned leather'
G even though it may have changed in physical appearance or chemical
combination and even though it may commercially be a different item, still it
remains a 'hide' or a 'skin'. 11048-E-Fl ...,.,

2.1. Interpretation has to be on the basis of the expression 'Agricultural
Produce' as set out in Section 2(a) of the Act. Interpretation on the basis of
H different statutes like Sales Tax Laws is of on assistance. 11048-Al
PARK LEATHER INDUSTRY (I') LTD. I'. STATE OF u.r. [S.N. VARIAVA, J.] I037
2.2. If there is a conflict between the Hindi version and the English A
version of the Act, then the English version would prevail. However, if there
is no conflict then one can always have assistance of the Hindi version in
order to find out whether the word used in English includes a particular item
or not. In the Hindi version the word used is 'chamra'. There can be no
dispute that the term 'Chamra' would include 'leather' in all its forms. B
11048-H; 1049-AI

-:t. A Hajee Abdul Shakoor & Company v. State of Madras, 11964) 8 SCR
217 (CB); TVL K.A.K. Anwar & Co. v. State of T.N., 11998] 1 SCC 437;
Rajasthan Roller Flour Mills Association & Anr. v. State of Rajasthan &
Ors., AIR (1994) SC 64; Edward Keventer Pvt. Ltd v. Bihar Stale Agricultural C
Marketing Board & Ors., 12000) 6 SCC 264; Mis Saraswati Sugar Mills v.
Hmyana State Board & Ors., AIR (1992) SC 224; Union of India & Anr. etc.
v. /. Delhi Cloth & General Mills Co. ltd, AIR (1963) SC 791; Krishi Utpadan
Mandi Samili, Kanpur & Ors. v. Ganga Dal Mill & Co. & Ors., 119841 4
SCC 516; Rathi Khandsari Udyong & Ors. v. State of Uttar Pradesh & Ors.,
119851 2 SCC 485; Krishi Utpadan Mandi Samiti & Anr. v. Mis Shankar D
Industries & Ors., 11993) Supp 3 SCC 361 and State of Tamil Nadu etc. v.
Mahi Traders & Ors. etc., 11989) 1 SCC 724, referred to.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 11768 of
1996.
E
From the Judgment and Order dated 10.7.96 of the Allahabad High Court
in C.M.W.P. No. 18535of1987.

Sudhir Chandra, A.P Sinha, Achintya Dwivedi, P. Niroop and Ms. Nandini
Gore for the Appellants.
F
Pradeep Misra for the Respondents.

The Judgment of the Court was delivered by

S. N. VARIA VA, J. This Appeal is against a judgment dated I 0th July,
1996. By this judgment a number of Writ Petitions filed before the Allahabad G
High Court have been dismissed.

The Petitioners in all the Writ Petitions were doing the business of
preparing tanned and finished leather. The question involved in all the four
Petitions was whether 'tanned leather" can be subjected to Uttar Pradesh
Mandi Fee payable under the provisions of U.P. Krishi Utapadan Mandi H
1038 SUPREME COURT REPORTS [200 I] I S.C.R.

A Adhiniyam, 1964 (hereinafter for the sake of convenience called the said Act).
For an understanding of this question it is necessary to see Section 2
(a) of the said Act which reads as follows :

" 'Agricultural produce' means such items of produce of agriculture,
B horticulture, viticulture, apiculture, sericulture, pisciculture, animal
husbandry or forest as are specified in the Schedule, and includes
admixture of two or more of such items, and also includes any such ~
item in processed fonn, and further includes Gur, Rab, Shakkar, Kandsari
and jaggery".

C Schedule G of the said Act deals with "Animal Husbandry". Serial No.
11 thereunder includes 'hides and skins·.

The question which had been raised in the Writ Petitions and which is
raised here is whether the term 'hides and skins' includes 'tanned leather'.
Mr. Sudhir Chandra has submitted that admittedly the tenn 'tanned leather'
-D has not been used either in the Act or in the Schedule. He admits that under
Section 2(a), not just the items which have been specified in the Schedule but
also an admixture of two or more such items or any of those items in a
processed form, would also be included. He, however, submits that tanned
leather is not 'hide or skin' and is not derived by processing 'hide' or 'skin'.
E He submits that 'tanned leather' is a manufactured commodity. He submits
that "tanned leather" is an entirely different commodity from 'hide' or 'skin'.

In support of his contention that 'tanned leather' is a different commodity
from 'hide' and 'skin' he relies upon a Judgment of the Constitution Bench
of this Court in the case of A Hajee Ahdul Shakoor and Company v. State
F of Madras, reported in [1964] 8 SCR 217. In this case the Petitioners were
dealers in skins in the State of Madras. They purchased raw skins from places
both within and outside the State of Madras, tanned those skins and sold
them through their agents in Madras. They were assessed to sales tax under
the provisions of the Madras General Sales Tax Act, 1939 and under rules
G l 6(2)(ii) of the Madras General Sales Tax (Turnover and Assessment) Rules.
They filed the Petition under Article 32 contending that Section 2 of the
Madras General Sales Tax (Special Provisions) Act, 1963 was ultra vires the
Constitution. That challenge was upheld on the ground that Section 2( I)
discriminated against imported hides and skins and local hides and skins. It
was however held that Rule 16(1) did not become invalid because Rule 16(2)
H had been held to be invalid. Under the Rules tax was levied on sale of hides
PARK LEATHER INDUSTRY (P) LTD. 1·. STATE OF U.P. [S.N. VARIAVA, J] !039

and skins in raw condition but no tax was levied on sale of hides and skins A
y· in tanned condition. Therefore, the Rules themselves made a distinction
between hides and skins in raw condition and hides and skins in tanned
condition. It was contended that hides and skins whether tanned or untanned
constituted one commodity and, therefore, there could be no tax on sales of
hides and skins in raw condition when there was no tax on sale of hides and B
skins in tanned condition. It was held that they were two different commodities
and constituted two separate categories for purposes of taxation. It was so
held because the two were treated differently in the Rules.

Reliance was also placed upon the authority in the case of TJIL K.A.K.
Anwar and Co. v. State ofT.N., reported in (1998] 1 SCC 437. This again was C
a case under the T.N. General Sales Tax Act, 1959. The question here was
whether raw hides and skins and dressed hides and skins were different
commodities. The Court following the decision in A. Hajee Abdul Shukoor
& Co. (Supra) held that dressed hides and skins were different goods from
raw hides and skins. It may be noted that it was so held in the context of the
definition as given in Item 7 of the Second Schedule of the said Act, which D
provided both for raw hides and skins as well as dressed hides and skins.
Thus the Act itself made a distinction between raw hides and skins and
dressed hides and skins. It is on that basis that the Court held that they were
not the same commodity.
E
Mr. Sudhir Chandra also placed reliance in the case of Rajasthan Roller
Flour Mills Association and anolher v. State of Rajaslhan and a/hers,
reported in AIR (1994) S.C. 64. This was a case under.the Central Sales Tax
Act and the question for consideration was whether the term "Wheat", within
the meaning of Section 14(i)(iii) of that Act, included "flour, maida and suji''
which were derived from Wheat. It was held that flour, maida and suji are F
different and distinct goods from wheat. It was held that flour, maida or suji
were not included in the Act and they would not fall within the term "Wheat"
as defined in the Act. It must immediately be noted that the Act only contained
the term "Wheat". That Act did not cover "Wheat" in its processed form. It
is because the Act did not cover "Wheat in a processed form" that the Court G
held that flour, maida and suji were not wheat.

Reliance was also placed upon the judgment of this Court in the case
of Edward Keven/er Pvt. Ltd. v. Bihm· State Agricultural Marketing Board
and Ors. reporled in, (2000] 6 S.C.C. 264. In this case the question was
whether fruit drinks "Frooti" and "Appy" fell within the term agricultural H
1040 SUPREME COURT REPORTS 1200 I] I S.C.R.

A produce under the Bihar Agricultural Produce Markets Act, 1960. This Court
held that even though these "Frooti" and "Appy" were manufactured out of
mango pulp and apple concentrate but after the mango pulp and apple
concentrates were processed and beverages were manufactured, the products
becomes entirely different from the fruits that is the mango and apple. It was
B held that even though the basic character of the mango pulp and apple
concentrate may be present in beverages, but the end products were not
fruits which were specified in the Schedule. On this basis it was held that the
products like "frooti" and "Appy'' were not covered by the Item Agricultural
produce as defined in Section 2(i)(a) of that Act.

C Mr. Sudhir Chandra also relied upon the case of Mis. Sara.nvati Sugar
Mills v. Hm)'ana State Board and others. reported in AIR ( 1992) S.C. 224 for
the proposition that there is a difference between 'manufacture' and
'processing'. In this case the question was whether an industry which
manufactures sugar from sugar cane was covered by Entry 15 of Schedule I
to the Water (Prevention and Control of Pollution) Cess Act, 1977. The
D relevant Entry under which the industry was sought to be brought in was item
15 of Schedule I which reads as "processing of animal or vegetable products
industry''. This Court held, in para 13, that the term 'processing' as normally
understood would mean that even after processing the product would retain
its character. The Court held that 'processing' essentially effectuates a change
E in form, contour, physical appearance or chemical combination or otherwise
by artificial or natural means. The Court held that a 'manufacture' implies a
change but that every change was not 'manufacture'. The Court held that for
'manufacture' something more was necessary and that there must be a
transformation and a new and distinct article must emerge having a distinctive
name, character or use. Based on this authority it was submitted that tanned
F leather was a different article and a distinctive commodity having a distinctive
name, character and use and that tanned leather was a manufactured item. In
our view the authority wou Id, if anything be against the Appellants. Tanned
leather retains its basic character namely, it remains hide or skin, though there
is some change in form and physical appearance.
G
Lastly reliance was placed upon the case of Union of India and another,
etc. v. I. Delhi Cluth and General Mills Co. ltd., etc. reported in AIR ( 1963)
SC 791. This was a case under the Central Excises and Salt Act and the
question was whether the Raw oils which were purified but not deodorised
in the process of manufacture of Vanaspati was covered by the expression
H "non- essential vegetable oils" in Item 12 of Schedule I of that Act. In this
PARK LEATHER INDUSTRY (Pl LlO. 1·. STATE OF U P [S.N. VARIA VA,J] ] 04 J

case_ it was held that processing cannot be equated to manufacture. It was A
held that the word "manufacture" is generally understood to mean as "bringing
into existence a new substance·· and does not mean merely "to produce some
change in a substance". In our view this authority would also show that in
fact there is no manufacture but mere processing of hides and skins to bring
them into a tanned state.
B
Based upon the above authorities Mr. Sudhir Chandra submitted that
'tanned leather' was not an 'agricultu'ral produce' inasmuch as it is a different
item or commodity from hide and skin and it is an item which is not a
processed form of hide or skin but an item which is manufactured. He submits
that for the above reasons the Judgment of the High Court cannot be sustained C
and requires to be set aside.

As against this Mr. Pradeep Misra submitted that definitions and
meanings given in other Acts or in the context of other Acts can be of no
assistance. He submits that one has to look at the provisions of the said Act
itself. He submitted that the term 'agricultural produce' had been given a wide D
meaning in Section 2 (a) of the said Act. He points out that it is a definition
which is not an exhaustive definition but is an inclusive definition. He submits
that any item would be an 'agricultural produce' if it is specified in the
Schedule or if it is an admixture of two or more items specified in the Schedule
or if it is a proces.sed form of any of the items specified in the Schedule. He E
points out that in U.P. all Acts are enacted in Hindi even though an equivalent
Engiish version is printed. He points out that in the Hindi version the terms
used are 'Khal Va Chamra'. He submits that a dictionary meaning of the term
·chamra' is leather and therefore the Hindi version clearly shows that leather
was meant to be included. He admits that if there was a conflict between an
Hindi version and an English version then by virtue of Article 3 84 of the F
Constitution of India the English version would prevail. He submits that if
there is no conflict, then the Hindi version can be looked at in order to
determine any ambiguity or to find out if any item is included or not.

In support of his submission he relies upon the case of Krishi Utpadan G
Mandi Samiti, Kanpur & Ors. v. Ganga Dal Mill and Co. and Ors., etc.
l!'' reported in [1984) 4 SCC 516. This was a case under the said Act. The
question was whether 'Dal' of legume is an agricultural produce and therefore
eligible to market fee. In that case it had been argued, as in the present case,
that as 'Dal' has not been specified in the Schedule and it was a distinct
commodity no market fee could be levied. This Court held that to resolve a H
1042 SUPREME COURT REPORTS (2001] I S.C.R.

A controversy of this nature one has to seek light from th~ definition of expres~ion .
'agricultural produce' as set out in Section 2(a) of the Act. This Court held
that no resort can be taken to decisions under entirely different statutes, such
as the sales tax laws, to find out whether the product were same or two
different and independi:_nt pr'?ducts commercially so recognised. It was held
B that it was an indisputable canon of construction that where an expression
is defined in the statute, unless there is anything repugnant in the subject
or context, the expression had to be construed as having the same meaning
assigned to it in the dictionary clause of the statute. It was held that 'Dal'
was nothing else but a whole grain split into two folds in its processed form
acquired by manufacturing pfocess and that- was therefore an agricultural
C produce. After so holding this Court held as follows :

"14. This very conclusion can be reached by a slightly different route.
As is well-known, the legislative enactments in the State of U.P. are
enacted primarily in Hindi language and its official and allthentic
translation in English is simultaneously published. Bearing this in
D mind, we tum to the notification dated April 11, 1978 specifying
legumes therein enumerated as specified a~ricultural produce for.
various Market Areas. The heading under which various legumes are·
enumerated is '£:?wi Dali ya Utpadan'. This tongue twister was explained
to us to mean that legume itself is Dwi Daliya Utpadan i.e., the whole
grain is made of two folds. Ek daliya grain is without a fold. Dwi
E
Daliya is a grain composed of two folds and certainly not many folds.
Concise Oxford Dictionary specifies the meaning--of legume to be
"fruit, edible part, pod, of leguminous plant; vegetable used for food," (
and 'leguminous' to niean "like of the botanical family of pulse". And•
in common parlance 'pulse' connotes legume and denotes dal of.
F legume. Reverting however, to the heading under which legumes are ..
enumerated in 1978 notification, it must be confessed that it clearly,
connotes the meaning to be given to the whole grain and denotes dal :
i.e., split folds as specified agricultural produce. The Hindi protagonists_
used the expression 'Dwi Daliya Utpadan' meaning thereby double
folded. grain called Gram, Peas, Arhar, Moong etc., on a strict
G
construction, the two dais i.e., two parts forming the whole grain both
are comprehended in the expression 'Dwi Daliya Utpadan'. Therefore,
it is crystal clear that while enumerating legumes in the Schedule and
reproduced in the 1978 notification to make them specified agricultural
· . produce, the framers intended to include both the grain as a whole
H and its. split parts the dal. And when the agricultural produce
PARK LEATHER INDUSTRY(P) LTD. v. STA TEO~ U.P. [S.N. VARJAVA, J.] 1043

· enumerated in the Schedule such as Gram 'ini:luding its processed part A
is reproduced in the notification as Dwi Daliya Utpadan, the dal of
each of the legumes therein mentioned became specified agricultural
produce." ·

It is thus to be seen that ·the Court derived support for its conclusion by
looking at. the Hindi version of the said Act on the ground that it was well B
known that in the State of U.P. enanctments were in. Hindi language.

Reliance was also placed upon the case of Rathi Khandsari Udyog and
Ors. v. Staie o/Uttar Pradesh & Ors., reported in (1985] 2 SCC 485. This was
also a case under the said Act. The question before the Court was whether C
'Khandsari sugar' manufactured by an open pan process \Vas an agricultural
produce within the meaning of the said Act. In this case also based upon a
Sugarcane (Control) Order, 1966 and U.P. Khandsari Sugar Manufacturer's
Licensing Order, 1967, both of which define 'kliandsari sugar' it had been
. contended that 'khandsari sugar' was a distinct and a separate commodity·
/from 'khandsari' as defined in Section 2(a) of the ~aid Act and therefore no D
market fee could be levied on 'khandsari sugar'. This, contention was negatived
and it was held that 'khandsari' was a genus and 'khandsari sugar' was a
· species and in the market both were merely known as 'khandsari'. It was held
that the word 'khandsari' was wide enough to cover 'khandsari' produced by
any process regardless of its quality or variety. It may be mentioned that a E .
challenge to Section 2 (a) on the ground that it was discriminatory and
violative of Article 14 was also repelled.

Reliance was also placed upon the case of Krishi Utpadan Mandi
Samiti & Anr. v. Mis. Shankar Industries & Ors.. reported in (1993) Supp. 3
S.C.C. 361(ll). This again was a case under the said Act. The question was F
wheth~~ 'gur-lauta\ 'raskat', 'rab- galawat' and 'rab-salawaf were 'agricultural
produce' under the said Act. ln this case it was noted that sugarcane was
an agdcultural produce out of which juice was extracted. The juice was then
thickened by dehydration and when it reached a particular pigment it took the
form of 'rab' which is a semi-solid form of the sugarcane juice. After boiling G
this 'rab' was put in a crystalliser where it was allowed to get cooled and
crystals were formed which were then rotated in the crystalliser. The crystallised·
rab. was then ·put into centrifugal machines in which through the process Of
infusion of sulphur, the sugarcane juice was cleaned and whitened. The 'rab'
which was not put into the centrifugal machine but which was dehydrated
and allowed to be hardened by the open pan process became 'gur', which H
1044 SUPREME COURT REPORTS [200 I] I S.CR.

A was sold for home consumption. The 'rab' whkh was not allowed to be
hardened was also sold in semi-solid form but certain persons who wanted
to make further profits put this 'rab' into centrifugal machines and by the
process of infusion of sulphur they obtained 'khandsari' in the dry powder/
crystallised form and the waste of 'rab' which was obtained in the liquid form
B known as 'molasses'. 'Molasses' was further utilised by many people by
boiling in the open pans and the same was again re-processed by cleaning
and dehydrating and later by sulphitation was taken in powder form. This
then was also sold in the market as inferior quality called 'rab-galawat'. It was
held that there was a further inferior quality of rab called 'rab-salawat'. The
contention was that 'gur-lauta', 'raskat', 'rab-galawat' and 'rab-salawat' were
C all different commodities which were not the same as 'gur' or 'rab' and that
therefore no market fee could be levied on those commodities. This Court held
that a wide interpretation had to be given to Section 2(a) of the said Act as
the meaning was exhaustive and not restricted to the items included in the
Schedule. It was held that items which came into being in a processed form
would be included. It was held that these items were 'agricultural produce'
D and market fee could be levied on these items.

Mr. Pradeep Misra then relied upoo the case of State of Tamil Nadu
etc. v. Mahi Traders & Ors. etc., reported in [ 1989) I S.C.C. 724. He clarified
that this was a case under the Central Sales Tax Act and that he was not
E saying that this would therefore be an authority for considering the definition
of the term "agricultural produce" under the said Act. He submitted that in
this case certain opinions of the Ministry of Commerce and Industry as well
as glossary of terms published by the Council of Scientific and Industrial
Research had been reproduced. He stated that he was merely bringing those
portions of the judgment to the attention of the Court. In this behalf he .,
F showed to the Court the paragraphs 6, 9, IO, 11 and 13, which read as follows:

"6. Turning to coloured leather, we may, at the outset, refer to a
very important circumstance referred to by the respondents. When
the CST Act came into force on April I, 1957, a question was raised
regarding the meaning of the expression 'hides and skins in dressed
G state' used in Section 14. The matter was referred to the leather
development wing of the Ministry of Commerce and Industry which ,.- ·
gave the following opinion :

Hides and skins are obtained from either slaughtered or dead
animals. The raw hides and skins thus obtained are known to be in
H the Green State. These are easily putrescible; if proper precautions are
PARK LEATHER INDUSTRY (P) LTD.,. STATE OF U.P. [S.N. VARIAVA, J.] 1045
-y not taken they would easily rot and decay. Since tanneries are not A
always located very near the source of raw hides and skins, the
question of 1treserving them for a temporary period till they reach a
tanning centre assumes importance. Raw hides and skins are 'cured'
by either wet salting, dry salting or drying. In the 'cured state' the raw
materials can be preserved for a temporary period. In the third stage
of temporary preservation, the hides and skins are 'pickled'. During B
..;,. the next stage they are tanned in which state they can be preserved
almost indefinitely. These tanned hides and skins are processed further
to yield Dressed Hides and Skins which are ready for use. 'Dressed'
or finished material could also be preserved almost indefinitely.

From the above, it will be seen that the expressing 'Hides and
c
skins in the raw or dressed state' refers at one end to the raw material
obtained from the slaughtered or dead animals and at the other to the
tanned and finished material; the expression, therefore, seems to include
the other intermediate stages indicated in the previous paragraphs.
Dressing, according to the authoritative interpretations, would mean D
the conversion of tanned hides and skins by further suitable processing
into leathers of different types which are ready for use (vide SBT/
--'
18(495)/14) of November 11, 1957) .
. -..
9. Can it then be said that the view expressed above is clearly
wrong? We think not; on the contrary, it is seen to be quite correct. E
The statutory expression refers to "hides and skins in a dressed
state". The guidelines issued for identification of 'finished' leather for
exports by the Indian Standards Institution (ISi) refer to as many as
19 operations or processes undergone during manufacture of 'finished
leather' but 'dressing' is not one of them. A glossary of terms relating
to hides, skins and leather published by the ISi in I 960 contains the
F
following definitions:

CRUSTS: (Crust Leather) - Tanned hides and skins without
any finish.

CURRYING: A series of dressing and finishing processes G
applied to leather after tanning in the course of which appropriate
amounts of oils and greases are incorporated in the leather to
give it increased tensile strength, flexibility and water resisting
properties.

DRESSED HIDES: Tanned hides, curried or otherwise finished, H
1046 SUPREME COURT REPORTS [2001] I S.C.R.

A for various purposes, such as belting, harness and saddlery,
travel goods and for upholstery.

DRESSING LEATHER: Vegetable tanned hides which may be
dressed to suit the purpose for which they are to be used, such
as for harness, saddlery and other mechanical purposes.
B
LEATHER: The skin or hide of animals prepared by tanning,
which still retains its original fibrous structure more or less
intact, but from which hair or wool may or may not have been
removed and which has been treated so as to be imputrescible
even after treatment with water.
c I0. The earlier glossary of such terms published by the British
Standard Institution defines 'dressing' as a "general term for the
series of processes employed to convert certain rough tanned hides
and skins and/or crust leather into leather ready for use". Also,
"Leather" is defined as "a general term for hide or skin which still
D retains its original fibrous structure more or less intact, and which has
been treated so as to be imputrescible even after treatment with
water". The hair or wool may or may not have been removed. Certain
skins, similarly treated or dressed, and without the hair removed, are
termed 'fur'. The DictionGIJ' of Leather Terminology published by the
Tanners' Council of America, describes leather as "the hide and skin
E
of any animal or any portion of such skin, when tanned, tawed or
otherwise dressed for use".

11. The above definitions show that hides and skins acquire the
name of 'leather', even if the hair or wool has not been removed
therefrom, as soon as they receive some treatment which prevents
F
them from putrefaction after treatment with water. Dressing is a stage
much later than tanning. Indeed, from the definitions quoted above,
it will be seen that it is practically the same as giving finishing
touches to the leather and making it suitable for the manufacture of
particular types of goods.
G
l 3. The same conclusion is further borne out by the Iiterature
referred to before us by Sri Ramachandran. Volume 7 of the
Encyclopaedia Britannica, under the word "dress". explains that the
verb has various applications which can be deduced from its original
meaning and that "it is thus used not only of the putting on of the
H clothing but of the preparing and finishing of leather.'" Volume 17,
PARK LEATHER INDUSTRY (P) LTD. 1·. STATE OF U P [S.N. VARIAVA, J ) ] 047

under the head "leather" details the various processes applied in the A
treatment of hides and skins at all stages, pre-tanning, tanning and
post-tanning. Dyeing or colouring is a process which follows tanning
but precedes "finishirig: (i.e., dressing) in order to make it suitable for
the purpose which ii is required in commercial usage. Part V of the
"Wealth of India", a publication of the Council of Scientific and
Industrial Research (1966), dealing with leather under "Industrial B
Products" explains that "hides and skins are liable to putrefaction and
loss unless suitably treated and converted into leather". Structurally,
hides and skins have a thick middle layer called corium, which is
converted to leather by tanning. The operations involved in leather
manufacture however fal I into three groups. Pre-tanning operations C
includes soaking, liming, de-liming, bating arid pickling, and post-
.tanning operations are splitting and shaving, neutralising, bleaching,
dyeing, fat-liquoring and stuffing, setting out, samming, drying, staking
and finishing. These operations bring about Chemical changes in the
leather substance and influence the physical characteristics of the
leather,· and different varieties of commercial leather are obtained by D
suitably adjusting the manufacturing operations. These proce.sses
need not be gone into in detai I but the passages relied upon clearly
show that hides and skins are termed 'leather' even as soon as the
process of tanning is over and the danger of their putrefaction is put
an end to. The entry in the CST Act, however, includes within its E
scope hides and skins until they are 'dressed'. This, as we have seen,
represents the stage when they undergo the process of finishing and
assume a form in which they can be readily utilised for manufacture
of various commercial articles. In this view, it is hardly material that
coloured leather may be a form of leather or may even be said to
represent a different commercial commodity. The statutory entry is F
comprehensive enough to include the products emerging from hides
and skins until the process of dressing or finishing is done."

Mr. Pradeep Misra submitted that tanned leather would be covered by
the definition of the term "Agricultural produce" as defined in Section 2(a) G
of the Act. He submitted that it was merely a processed form of "hide and
skin". He submitted that cases relied upon by the Appellants were of no help
as all of them were under taxing statutes and were merely interpreting terms
in the context of the definitions given in those statutes.

We have considered the arguments of both the parties. In our view it H
1048 SUPREME COURT REPORTS [200 I! I S.C.R.

A is clear that the interpretation has to be on the basis of the expression
'Agricultural produce' as set out in Section 2(a) of the said Act. In so
determining decisions based on different statutes such as Sales Tax Laws can
be of no assistance. All the cases relied upon by Mr. Sudhir Chandra are
cases under the taxing statutes where the interpretation has been given on
the basis of the terms as defined in those statutes.
B
A perusal of Section 2(a) of the said Act makes it clear that an agricultural
product would be a product which is specified in the Schedule or one which
is admixture of two or more items and would also include any such item in
a processed form. In our view it makes no difference, for the purposes of the
C said Act, that the concerned item is a different commodity from the one which
is included in the Schedule. It is possible that by virtue of an admixture of
two or more items or by virtue of processing a different commodity or item
may come into existence. Even though a different commodity may come into
existence, it would still be an ·Agricultural produce'. This is best illustrated
by Sugarcane which is in Schedule A, Item VIII at Serial No. 14. From
D Sugarcane, "rab" and "gur" are manufactured. They are already different
commodities or items. Yet they are all included. The specific inclusion of items
like "gur, rab, shakkar, khandsari and jaggery" is to make it clear that merely
because it becomes a different item or commodity it is not excluded.

We see no reason to go into the difference between 'manufacturing'
E and 'processing'. In the strict sense of the terms there may be a difference.
However, we are not required to go into these differences as, in our view, it
is very clear, from what has been set out by the Appellants themselves in their
affidavit that for hide and skin to be converted into leather or tanned leather
all that is required is a process. It is a process of cleaning, curing and adding
F preservatives. That it is a process has been held by this Court in the case
of State of Tamil Nadu v. Mahi Traders and Others, etc., (Supra). We are also
of the view that the finished product i.e., 'tanned leather' even though it may
have changed in physical appearance or chemical combination and even
though it may commercially be a different item still remains a 'hide' or a 'skin'.

G For this reason we are of the opinion that there is no illegality or
infirmity in the judgment of the High Court.

Even otherwise our above view is supported by the_ Hindi version of
the definition. As has been set out in the case of Krishi Utpadan Mandi
Samiti, (Supra), it is well known in U.P. all legislations are in Hindi. Of course
H an English version simultaneously published. Undoubtedly if there is conflict
PARK LEATHER INDUSTRY (P) LTD.''· STATE OF UP [S.N. VARIAVA, J.] · 1049

between the two then the English version would prevail. However, if there is A
no conflict then one can always have assistance of the Hindi version in order
to find out whether the word used in English includes a particular item or not.
In the Hindi version the word used is 'Chamra'. There can be no dispute that
the.term 'Chamra' would include 'leather' in all its forms.

In this view of the matter the Appeal stands dismissed. There will, B
however, be no order as to costs.

B.S. Appeal dismissed.