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TMI BlogDEFINITION OF ‘MANUFACTURE’ UNDER VARIOUS LAWSX X X X Extracts X X X X X X X X Extracts X X X X ..... DEFINITION OF ‘MANUFACTURE’ UNDER VARIOUS LAWS - By: - Mr. M. GOVINDARAJAN - Other Topics - Dated:- 19-12-2013 - - The term manufacture derived from the foreign languages viz., medieval French word, manufactura and manu factus Latin words, which literally means made by hand . The common meaning prevailing today for the said term is the process of making products especially with machines in factories. The said term may be used as noun or as verb. The other relevant terms used for manufacture are manufacturing , manufacturing processes , manufacturer . Even though there is common meaning for the term manufacture different meanings are assigned in various laws. Under Central Excise Act Section 2(f) of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Act, 1944 defines the term manufacture as including any process,- incidental or ancillary to the completion of a manufactured product; which is specified in relation to any goods in the Section or Chapter notes of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture; or which, in relation to the goods specified in Third Schedule involves packing or re-packing of such goods in a unit container or labeling or re-labeling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer, and the word "manufacturer" shall be construed acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly and shall include not only a person who employs hired labor in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account. The definition of 'manufacture' given under the Excise Act is an inclusive one. It does not define the term manufacture but merely states that certain processes set out therein would fall under the definition of manufacture. Under Income Tax Act Initially there is no definition for the term manufacture in the Income Tax Act, 1961 . During 2004 the FICCI in a letter to the Central Board of Direct Taxes (CBDT), has said, "One is surprised to note that the term `manufacture' has not been defined in the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-Tax Act, even though the word has been used in several sections of the Act , which provide for either exemption from tax or deduction from taxable income ." Section 2(29BA) of Income Tax Act, 1961 (which has been inserted vide Finance Act, 2009, with effect from 01.04.2009) defines the term manufacture as with its grammatical variations, means a change in a non-living physical object or article or thing, (a) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or (b) bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re. Under Factories Act Section 2(k) of Factories Act, 1948 does not define the term manufacture but defines manufacturing process as any process- making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, or pumping oil, water, sewage or any other substance; or generating, transforming or transmitting power; or composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding; or constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preserving or storing any article in cold storage. Under Consumer Protection Act, 1986 Section 2(l) of Consumer Protection Act, 1986 does not define the term manufacture but defines manufacturer as a person who makes or manufactures any goods or parts thereof; or does not make or manufacture any goods but assembles parts thereof made or manufactured by others and claims the end-product to be goods manufactured by himself; or puts or causes to be put his own mark on any goods made or manufactured by any other manufacturer and claims such goods to be goods made or manufactured by himself. Explanation to this section provides that where a manufacturer dispatches any goods or part thereof to any bran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch office maintained by him, such branch office shall not be deemed to be the manufacturer even though the parts so dispatched to it are assembled at such branch office and are sold or distributed from such branch office; Under Employees State Insurance Act Section 2(14AA) of the Employees State Insurance Act, 1948 assigned the meaning of the term manufacturing process of Factories Act, 1948. Under the Drugs and Cosmetics Act Section 3(f) of the Drugs and Cosmetics Act, 1940 defines the term manufacture in relation to any drug or cosmetic includes any process or part of a process for making, altering, ornamenting, finishing, packing, labelling, breaking up or otherwise treating or adopting any drug or cosmetic with a view to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its sale or distribution but does not include the compounding or dispensing of any drug, or the packing of any drug or cosmetic, in the ordinary course of retail business; and to manufacture shall be construed accordingly. Under Drugs (Prices Control) order, 2013 Clause 2(n) of the order defines the term manufacture as any person who manufactures, imports and market drugs for distribution or sale in the country. Under Insecticides Act Section 3(j) of Insecticides Act, 1968 defines the term manufacture i n relation to any insecticide, include: any process or part of a process for making, altering, finishing, packing, labeling, breaking up or otherwise treating or adopting any insecticides with a view to its sale, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distribution or use but does not include the packing or breaking up for any insecticides in the ordinary course of retail business; and any process by which a preparation containing an insecticide is formulated. Under Explosives Act Section 2(h) of Explosives Act, 1884 defines the term manufacture in relation to an explosive as including the process of- dividing the explosive into its component parts or otherwise breaking up or making the explosive, or making fit for use any damaged explosive; and re-making, altering or repairing the explosive. In this Act also there is no definite meaning for the term manufacture but only having inclusive clauses. Under Pharmacy Act This Act defines the term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturer as a person who compounds, mixes, prepares, produces, and bottles or packs drugs, cosmetics or devices for the purpose of distributing or selling to pharmacies or to other channels of distribution. Under Wildlife Protection Act Section 2(19) of the Wildlife Protection Act, 1972 defines the term manufacture as a manufacturer of animal articles. Still more definitions may be there for the said word in other laws also. Interpretation in legal words brings more definition for a particular word. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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