JUDGMENT A. K. MATHUR, C.J. - This is a sales tax reference under section 44(1) of the M.P. General Sales Tax Act, 1958, at the instance of the assessee and the following questions of law have been referred by the Board of Revenue for answer of this Court : "(1) Whether, on the facts in the circumstances of the case, the Board of Revenue was justified in holding that slitting and cutting of sheets amounted to manufacture and, therefore, the side cuttings and strips could be held to be local goods ? (2) Whether, on the facts and in the circumstances of the case, mere affixture of the seal 'local goods for Dewas Area, entry tax not paid' was sufficient to make the goods eligible to entry tax ? (3) Whether there is no valid material to sustain the finding of the Board of Revenue that the goods in question were 'local goods for dewas area' ? (4) Whether, on the facts and in the circumstances of the case, the Board of Revenue was justified in holding that side cuttings and strips of sheets were 'local goods' for Dewas area, as defined in clause (f) of sub section (1) of section 2 of the M. P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (Act No. 52 of 1976) and, therefore, the dealer was not entitled to claim exemption under clause (iv) of the first proviso to sub-section (1) of section 3 of the said Act ? 2. The applicant had purchased some steel scrap from M/s. Steel Tubs of India Limited, Dewas. The additional Sales Tax Officer, Indore, in the course of assessment for the assessment year 1979-80, imposed entry tax in respect of the aforesaid goods. An appeal was preferred by the applicant before the Additional Appellate Deputy Commissioner of Sales Tax, which was dismissed. Thereafter, the assessee approached the Board of Revenue in appeal and the Board of Revenue dismissed the appeal of the assessee. Hence, an application was made before the Board of Revenue for making a reference under section 44(1) of the Act, but that was rejected by the Board of Revenue. Therefore, this reference application filed under section 44(2) of the Act and the aforesaid questions were called from the Board of Revenue. 3. We have heard the learned counsel for the parties and perused the records. Therefore, this reference application filed under section 44(2) of the Act and the aforesaid questions were called from the Board of Revenue. 3. We have heard the learned counsel for the parties and perused the records. From the facts as mentioned above, it appears that the goods are bought by the Steel Tubes of India in the local units of the State of M.P. and they suffered the entry tax. Thereafter these goods are used by M/s. Steel Tubes of india Ltd., Dewas, and after utilising the major goods according to specification and requirements, certain scraps are sold to the assessee. It is submitted that Steel Tubes of India which utilises these goods and in process of that, they have to do some cutting, etc., for using these goods for their consumption, as scraps are reduced in small piece of the steel and that is being purchased by this assessee and it is said that it is a local goods. A certificate of M/s. Steel Tubes of India was also produced though it could not be produced before the assessing authority, but it was produced before the Board of Revenue. These scraps which is mentioned in certificate, said to be a scrap and a by-product. This scrap, in our opinion, is not a manufactured product out of the goods which has been purchased by the Steel Tubes and this is only a scrap and it does not involve any process of manufacture. This scrap is like a waste product for them and the scrap is not something which is materially different from the basic goods which had been used by M/s. Steel Tubes of India. The process of manufacturing necessarily implies that some new independent identity should arise in the matter. Recently, this Court at main seat at Jabalpur, has already taken a view that the scrap is not something new which comes out from slitting and cutting of the main steel. In fact, the manufacture in processing necessarily implies that a new product emerges from that process or manufacture. These small scraps relate from the main steel tubes as a scrap cannot be treated to be a new independent commerce item. Therefore, the view taken by the Board of Revenue that the scrap was something independent item and which has not suffered the entry tax, cannot be accepted. These small scraps relate from the main steel tubes as a scrap cannot be treated to be a new independent commerce item. Therefore, the view taken by the Board of Revenue that the scrap was something independent item and which has not suffered the entry tax, cannot be accepted. In fact, the scraps are nothing but remains of the same goods which has already suffered the entry tax and they are being sold as a local goods and they are not something entirely independent of those tubes, rolls and coils purchased by M/s. Steel Tubes of India. The scrap is essentially the same scraps of rolls and coils, therefore, no independent commerce identity is emerged and it cannot be subject to the market tax because under the provision of M.P. General Sales Tax Act and Entry Tax Act, goods can only suffer one point tax and not multi-point tax. Hence, in this view of the matter, we are of the opinion that the view taken by the Board of Revenue does not appear to be correct. Hence, we answer the aforesaid questions against the Revenue and in favour of the assessee. Reference answered in the negative.